South-South Cooperation

Abstract

Purpose– India is described as an emerging donor. Actually India has started providing development assistance to developing countries immediately after independence. The amount of aid was relatively small, but grew over the years to a recognisable size. The purpose of this paper is to review the long experience of India in the framework of development assistance which is laid in the foundational principles of South-South Development Cooperation (SSDC).Design/methodology/approach– Based on secondary data, the paper provides an exhaustive account of India's programme of development assistance, and a critical discussion of issues involved.Findings– The analysis shows that given certain unique features of its aid programme, India has a great potential to emerge as a major donor country, and even to rank among big traditional donor countries. It can also influence the global aid architecture. There are many lessons that others can learn from the “Indian model of aid”. However, there are certain problems and challenges that India has to address for it to become a major international player in the aid business. One of the most important problems refers to the absence of detailed information.Research limitations/implications– The available details on India's assistance are sketchy and confusing; there are no detailed and consolidated statements of assistance; and it is only now a proper formal agency to coordinate all external assistance and to provide effective management in a cohesive manner has been set up.Originality/value– The analytical and critical account of India's aid programme presented here is hoped to provide valuable fresh insights to the whole issue and should be of considerable academic and policy value.