Development Assistance Funding Research Articles

Compromise and complicity: partnership and interdependence in a global challenges research collaboration

This article contributes to debates on international collaborations by examining contradictions between the decolonial turn and the UK’s Global Challenges Research Fund which imposed Global North leadership on Global South partners. Through the lenses of compromise and complicity, the article explores how collaborators strive to work together equitably within the constraints of a UK government Official Development Assistance funding scheme. Drawing on focus group discussions with members of a research team, the article traces, first, their engagement with political and institutional constraints and, second, their articulation of collaborative compromise and productive complicity. The article foregrounds the generative potential of complicity as a productive concept that can help partners to navigate the challenges of interdependence and partnership entailed in North–South, South–South, cross-sector and interdisciplinary collaboration.

ФІНАНСОВІ ТА ІНВЕСТИЦІЙНІ ІНСТРУМЕНТИ СПРИЯННЯ ЦИРКУЛЯРНІЙ ЕКОНОМІЦІ: СТАЛИЙ РОЗВИТОК І КЛІМАТИЧНА НЕЙТРАЛЬНІСТЬ ЯК ТРИГЕРИ ОЗЕЛЕНЕННЯ МІЖНАРОДНИХ РИНКІВ КАПІТАЛУ

The purpose of the article is to identify sustainable development and climate neutrality as triggers for the greening of international capital markets, which will begin the process of identifying a class of financial and investment instruments that contribute to the development of a circular economy. It is argued that the inclusion of social and environmental factors in determining the quality of financial and investment assets will become a new reality, indicating that the financial sector will play a key role in mobilizing the capital needed to implement the global agenda for sustainable development and the development of a circular economy. Sustainable finance will be an end in itself and a precondition for facilitating and accelerating a circular, green and sustainable transition. It has been established that the concept of the circular economy (CE) is still in the stage of theoretical construction, and its final definition is still far from reaching a consensus position in the scientific community. An analysis of the fundamental positions and beliefs of representatives of the conservative, systemic, evolutionary, synergetic, integrated, process, resource, commercial, anthropocentric, environmental and integral approaches made it possible to establish the heterogeneity of ideas regarding the transformational potential of the circular economy for the implementation of green, energy transitions and achievements. climate neutrality and sustainable development. Discussion about the so-called. forced "greening" of international capital markets, international finance and investment, state aid (subsidies and purchases), including to encourage the development of a circular economy, is recognized as contraversion. It is proposed to start a discussion on the development of an algorithm for including future economic benefits from adapted circular business models in business valuation and adequately reflecting them in accounting reports in order to protect investors from unweighted investment strategies, therefore, the issue of attributing investments in a cyclical production process to the class of intangible assets becomes especially acute. (given that the benefits to companies and society will only be felt in the long term). From the standpoint of CE funding, it is promising to study the categories of "sustainable investment" and "eco-friendly investment". There has been a marked lack of research linking CE to sustainable investment in general. While CE appears to be one of the main beneficiaries of the sustainable investment megatrend, at the company level, there is no evidence of an increase in the volume of their financing by “sustainable investors”, nor is it established that the circular activity of companies has helped to accelerate the process of obtaining funding, and also that companies are actively starting to create CE Development Assistance Funds. It has been proven that the integration of CE principles into financial instruments for the development of sustainability (sustainable development, low-carbon economy, climate neutrality) leads to the expansion of the functionality of green bonds and transitional bonds as part of the category of ESG bonds issued to finance the energy and circular transition of companies. While most existing green bonds do not integrate cyclical principles, the requirement that green bonds have a well-defined “use of earnings” is important for CE funding precisely because green bonds are able to integrate cyclical principles into a linear production system. In the context of green bonds, it is initiatives to promote circular principles of waste management and resource use that constitute the fourth largest category of "use of green bond proceeds in the world". It is argued that investments in the circular economy can contribute to the achievement of several sustainable development goals, and therefore green finance and sustainable finance can be considered as components of circular finance. The potential of using CBDCs for the development of a closed-loop economy is considered. Of particular interest is the development of a line of green digital finance, including one based on CBDS. Further research into the impact of environmental, social and governance (ESG) factors on shaping the international business environment will play an important role in greening the practice of asset management. The volume of investments in the development of the circular economy in state packages of green incentives was estimated. It is established that the green economy stimulates transformational shifts in the field of international finance, initiating the development of a new class of financial assets: (1) green finance; (2) sustainable finances; (3) finance for the development of the bioeconomy; (4) finance for the energy transition; (5) finance for circular transition; (6) climate investments; (7) low-carbon investments; (8) investments in the development of alternative energy; (9) eco-friendly investments.

Canada’s Small INGOs: Growth Aspirations, Strategies, and Constraints

During the past two decades, international development non-government organizations (INGOs) have proliferated in the global North. In Canada, there are ∼1350 registered INGOs—of which, 950 were established in 2000 or later, 1192 receive no federal government funding, 1202 have annual revenues under CAD one million dollars, and 709 have no full-time employees. This new wave of Small and Medium Organizations (SMOs) epitomises the decentralisation of global development as private aid has surpassed Official Development Assistance funding. Yet, recent studies suggest SMOs have a short lifespan and fail to progress beyond service provision representing the first evolutionary stage of INGO maturation. Our study combines surveys (n: 95) and interviews (n: 18) with Canadian SMOs to explore growth aspirations along with their challenges and strategies to increase revenue. Our results show that nearly all Canadian SMOs desire organisational growth, and pursue diverse funding sources and innovative strategies to increase revenue. However, for SMOs, growth means doing more of the same thing—they are committed to improving the living conditions of their target population—which contradicts best practices to scale up INGO impact and may necessitate alternative organisational evolutionary guides for SMOs operating in this emerging development niche.

Economic Implications of COVID-19 in African Countries: Looking Beyond the COVID-19 Era

Economic development or growth is interlinked with socio-political outcomes in any government. The outbreak of the COVID-19, a health crisis, across the globe coupled with policy responses formulated to address the spread of the disease has had greater implications for the economic trajectory of developing countries in Africa. This research paper is built upon a qualitative research design of data collection to explore the contextual and structural factors that further expose African countries to become more vulnerable to the COVID-19 pandemic. The paper further goes to assess the effects of the COVID-19 pandemic on African economies as well as assessing possible strategies that can be adopted towards economic recovery through documentary analysis. Data collected from journal articles, financial reports, newspaper articles and books was analyzed through thematic means to derive meanings and relationships across the data set. The study established that the pandemic resulted in a decline in Foreign Direct Investments, Development Assistance Funds, and decline in household incomes, lost productivity (low levels of GDP) and high debt deficit among other challenges. The study indicates that African countries have to look beyond the COVID-19 pandemic to identify possible strategies towards spurring economic development. In the same light, developing countries ought to also address context specific challenges like corruption hindering effective economic growth. The study recommends developing countries to diversify their revenue sources, digitize tax systems and introduce fiscal policies towards addressing COVID-19 effects.

The impacts of marketization on international aid: Transforming relationships among USAID vendors

AbstractThe article outlines changing US government strategies in response to growing marketization of international aid and development. As private sector US government vendors, the active, purposive role of for‐profit firms in aid distribution is difficult to appreciate from only an exploration of funding awards. The literature identifies multiple influences on vendor relationships between NGOs and for‐profit firms including new government policies and donor priorities as well as the arrival of new stakeholders. Our review of US official development assistance funding distribution juxtaposes funding awards to NGOs and for‐profit firms between 2011 and 2020, uncovering new patterns that alter our previous understanding of government aid as a public good. The article concludes that marketization of international aid and development reflected in US policy not only alters the composition of stakeholder engagement but has fundamentally transformed aid delivery models, introducing opportunities for flexibility and potential interchangeability among vendors.

Covid-19 1 year on: The challenge for low-middle income countries.

Covid-19 1 year on: The challenge for low-middle income countries.

Climate change and COVID-19: reinforcing Indigenous food systems

Climate change and COVID-19: reinforcing Indigenous food systems

Commonwealth SIDS and UK Overseas Territories sustainable fisheries programmes: An overview of projects and benefits of official development assistance funding

In recent years, Official Development Assistance (ODA) funding has decreased for sustainable fisheries projects worldwide. However, the UK Government has committed to ringfencing 0.7% GDP to international development assistance to support a large range of programmes worldwide including, where appropriate, sustainable fisheries and aquaculture capacity building in Overseas Territories and the Commonwealth. This is with the aim of reducing poverty, increasing resilience in the fisheries sector to climate change impacts and increasing food security.The primary objective of this paper is to demonstrate the significant support by UK Government to the Commonwealth Small Island Developing States (SIDS) and UK Overseas Territories (OT) and the impacts of such interventions. This support is illustrated through an introduction to the Commonwealth Marine Economies programme and the Blue Belt programme.In this paper the emerging trends for ODA support are set out, then the importance of fisheries to a selection of ODA-eligible states is highlighted. Finally, illustrative examples of projects from two key UK Government programmes in Commonwealth states and UK Overseas Territories that demonstrate a wide range of potential capacity building support activities and derived benefits to the states are summarised. We explain how activities to sustainably develop the fisheries sector in Commonwealth Small Island Developing States (SIDS) and UK Overseas Territories (OT) enhance biodiversity protection and create opportunities to support ‘Blue Growth’ (the long-term strategy to support sustainable growth in the marine sectors).

Evaluating policy-relevant research: lessons from a series of theory-based outcomes assessments

The increasing external demand from research funders and research managers to assess, evaluate and demonstrate the quality and the effectiveness of research is well known. Less discussed, but equally important, is the evolving interest and use of research evaluation to support learning and adaptive management within research programmes. This is especially true in a research-for-development context where research competes with other worthy alternatives for overseas development assistance funding and where highly complex social, economic and ecological environments add to evaluation challenges. Researchers and research managers need to know whether and how their interventions are working to be able to adapt and improve their programmes as well as to be able to satisfy their funders. This paper presents a theory-based research evaluation approach that was developed and tested on four policy-relevant research activities: a long-term forest management research programme in the Congo Basin; a large research programme on forests and climate change; a multi-country research project on sustainable wetlands management, and; a research project of the furniture value chain in one district in Indonesia. The first used Contribution Analysis and the others used purpose-built outcome evaluation approaches that combined concepts and methods from several approaches. Each research evaluation began with documentation of a theory of change (ToC) that identified key actors, processes and results. Data collected through document reviews, key informant interviews and focus group discussions were analysed to test the ToCs against evidence of outcomes in the form of discourse, policy formulation and practice change. The approach proved valuable as a learning tool for researchers and research managers and it has facilitated communication with funders about actual and reasonable research contributions to change. Evaluations that employed a participatory approach with project scientists and partners noticeably supported team learning about past work and about possible adaptations for the future. In all four cases, the retrospective ToC development proved challenging and resulted in overly-simplistic ToCs. Further work is needed to draw on social scientific theories of knowledge translation and policy processes to develop and further test more sophisticated theories of change. This theory-based approach to research evaluation provides a valuable means of assessing research effectiveness (summative value) and supports learning and adaptation (formative value) at the project or programme scale. The approach is well suited to the research-for-development projects represented by the case studies, but it should be applicable to any research that aspires to have a societal impact. This article is published as part of a collection on the future of research assessment.

Donor Funding for Reproductive, Maternal, Newborn and Child Health Nears US$14 Billion Annually

Donor development aid for reproductive, maternal, newborn and child health worldwide more than tripled between 2003 and 2013, although it is unknown whether this marked increase translated into better outcomes, according to an analysis from the Countdown to 2015 project. (1) The amount of official development assistance funds plus grants from the Bill & Melinda Gates Foundation (collectively termed ODA+) to these health subsectors increased by 225% over the period--to nearly US$14 billion. Gains were greatest for child health, with the bulk going to immunization efforts, and for reproductive and sexual health, with the bulk going to HIV interventions. Correlation between amounts disbursed and country metrics of health need became stronger over the study period, a change that suggests better targeting of funding to level of need. For the study, investigators used the January 2015 download from the creditor reporting system of the Organisation for Economic Co-operation and Development, which included global financial disbursements through 2013. They used a predefined framework to code all projects over the 2003-2013 period on the basis of whether they were related to reproductive, maternal, newborn and child health; they also coded disbursements for 2003-2008 relating to reproductive and sexual health activities. The end result was a Countdown data set for 2003-2013, which was matched to the 2015 creditor reporting system data set. The investigators then analyzed trends in ODA+ for reproductive, maternal, newborn and child health for 2003-2013, trends in donor contributions and disbursements to recipient countries. They also calculated Spearman correlation coefficients between funds disbursed and selected metrics of health need to assess targeting. In 2013, a total of 147 countries and 17 regional entities received ODA+ disbursements. These disbursements were made by 64 donors reporting to the creditor reporting system and the Bill & Melinda Gates Foundation. Results of analyses show that ODA+ to the entire health sector in 2013 amounted to US$24 billion, or 15% of the total for that year--an increase from 10% in 2003. Disbursements specifically for reproductive, maternal, newborn and child health in 2013 amounted to almost US$14 billion. Some 48% of this amount--$6.8 billion-supported child health, 34% ($4.7 billion) supported reproductive and sexual health, and 18% ($2.5 billion) supported maternal and newborn health. Between 2003 and 2013, ODA+ for reproductive, maternal, newborn and child health increased by 225% overall; the increase was greatest for child health (286%), followed by reproductive and sexual health (194%) and maternal and newborn health (164%). Bilateral donors accounted for the largest share--59%--of all ODA+ for reproductive, maternal, newborn and child health in 2013; global health initiatives disbursed 23%, and multilateral aid agencies disbursed 13%. The leading donors for the period 2003-2013 were the United States (US$32 billion), the Global Fund (US$11 billion), the United Kingdom (US$7.3 billion) and the Global Alliance for Vaccines and Immunization (US$6.6 billion); these same donors were also the leaders in 2013. Throughout the study period, most ODA+ for reproductive, maternal, newborn and child health was concentrated in the 75 Countdown priority countries, where 95% of all maternal and child deaths occur. …

Government support for SME innovations in the regional industries: The case of government financial support program in South Korea

This study explores the impact of governmental support policies on the innovation of SMEs in the regional strategic industries in South Korea. We use the technological development assistance funds as a proxy for governmental support policies for SMEs in the regional industries in Korea. The innovation of SMEs is measured by technological innovation: patent, utility model, trademark, and new design registrations. Before empirically testing the impact of governmental support policies on the innovation of SMEs, this study reviews the literature concerning the innovation and the governmental support policies of SMEs in regional industries. Results from empirical models, which simultaneously control for factors which were thought to affect the innovation of regional SMEs, indicate that a positive relationship exists among the technological development assistance by the Korean government and patent acquisitions and new design registrations of regional SMEs. Networks with universities also have a positive relationship with patent acquisitions and new design registrations of regional SMEs. This study suggests there is an importance to governmental financial aids for regional SME innovations, and there is an importance to the need to build a strong social relationship in today's networked economy.

Patterns of funding allocation for tuberculosis control in fragile states

To assess recent (2006-2010) tuberculosis (TB) funding patterns in conflict and non-conflict-affected fragile states to inform global policy. The Creditor Reporting System was analysed for official development assistance funding disbursements towards TB control in 11 conflict-affected states, 17 non-conflict-affected fragile states and 38 comparable non-fragile states. The amounts of funding, funding relative to burden, funding relative to malaria and human immunodeficiency virus (HIV) control, disbursements relative to commitments, sources of funding as well as funding activities were extracted and analysed. Fragile states received on average more per capita for TB control relative to non-fragile states (US0.159 vs. US0.079). However conflict-affected fragile states received on average less per capita than non-conflict-affected states (US0.144 vs. US0.203), despite worse development indicators. Conflict-affected fragile states also received on average only 70% of TB funds already committed. Analysis by burden revealed the least disparity in funding in highest prevalence settings. Analysis of funding activities suggests increasing importance of TB-HIV integration, multidrug-resistant TB and research in both fragile and non-fragile states. Relative to non-conflict-affected fragile states, conflict-affected fragile states received approximately two thirds the per capita funding for TB. This study revealed disparities in TB control funding between fragile and non-fragile as well as between conflict and non-conflict-affected fragile states. Findings suggest possible avenues for improving the allocation of global TB funding.

THE POLITICAL ECONOMY OF ATTRACTING PUBLIC FUNDS: THE CASE OF LEBANON

Using a dataset on 80 poverty pockets in Lebanon in 2004, we find that polarization, fractionalization and sectarian distance consistently and robustly affect a pocket's ability to attract development assistance funds. Our results are consistent with the prerogative of confessional balance in government decisions dictated by the power-sharing game in the post-war era. They put into question the design of effective channels to allocate development funds in polarized societies.

Improving the long-term sustainability of health aid: are Global Health Partnerships leading the way?

Over the last decade development assistance for health has more than doubled. This increase provides an unprecedented opportunity to scale up health services, and in doing so, achieve the health Millennium Development Goals. However, sustaining scaling up will in turn require sustainable donor support until domestic health financing can substitute for it. The provision of long-term predictable finance is of particular concern in health because the bulk of costs are recurrent and many interventions require sustained, multi-year support to be successful. This is also true for health systems strengthening efforts. As the bulk of new aid resources flow through Global Health Partnerships (GHPs), their ability to make long-term commitments is critical to health systems development. In order to better understand the constraints that prevent development partners from making long-term commitments of health aid, the World Health Organization reviewed the practices of seven major health partners in committing development assistance funds over the long term. The review found increasing evidence of long-term commitments of aid for health in each of the seven agencies. The GHPs and their funders have been at the forefront of this trend, pioneering many of the new approaches. The study concludes that all partners have scope to improve the duration of aid within existing rules and regulations, and that the main constraints to doing so are political. Predictability is even more of a concern in current global economic circumstances, as access to resources begins to be squeezed. In this context it is important that we learn from GHPs, which have successfully tested innovative approaches to both raising and disbursing health funds. The prospects for change associated with the new administration in the United States-the largest health donor and the most unpredictable, but also a major supporter of GHPs-make this task even more urgent.

Core-Periphery Relations and Urban Transport Infrastructure Investment

This paper attempts to test empirically whether a five percent additional capital infusion to land transport services sector in the National Capital Region reinforces center- periphery spatial configuration in a developing economy like the Philippines. The study captures the impact of such capacity build-up in terms of changes in interregional flows, regional welfare and output. The financing of such transport capacity enhancement is through an equivalent amount of government expenditure which is funded by foreign transfer payments like official development assistance funds. A transport-oriented spatial general equilibrium model is presented based on a five region social accounting matrix. Results indicate that while absolute gains in welfare and output still go to National Capital Region, the enhanced interregional flow of goods and services creates significant spillover effects in periphery regions which are located in Southern Philippines namely, Visayas and Mindanao.

Bilateral and multilateral financial assistance for the energy sector of developing countries

2 This article examines trends in development assistance funding for energy and the implications for mitigating climate change. It presents financial data from bilateral and multilateral donors during 1997-2005, a period that begins with the agreement on the Kyoto Protocol under the United Nations Framework Convention on Climate Change. During this period, aid for energy totalled over US$64 billion or 6-10% of all development assistance. Annual energy assistance was virtually stagnant at approximately US$6-7 billion from 1997 to 2005, but preliminary evidence indicates that some efforts are being made to fill the resource gap and to mitigate climate change. Analysis suggests that there has been somewhat of a shift away from fossil fuel to lower greenhouse-gas-emitting projects. However, the increases in funding and shifts to low greenhouse gas technologies are fragile. Analysis also suggests that, unless development assistance for energy increases in the coming years, the influence of multilateral banks will diminish and their ability to encourage sustainable energy projects will decline. It should be noted that funding levels for projects do not tell the whole story. There is a continuing evolution of aid modalities under way, as development financing for project-based activities is supplemented with macro-economic and sector-wide assistance targeted at promoting policy reforms, institutional change and capacity building. Several challenges will need to be met in the future: to increase funding for the MDBs by finance ministers; to 'green' private sector funds to ensure that investments made today do not pollute tomorrow; and to overcome the lack of a common reporting format by standardizing the collection and reporting of data on investments for energy.

Bilateral and multilateral financial assistance for the energy sector of developing countries

This article examines trends in development assistance funding for energy and the implications for mitigating climate change. It presents financial data from bilateral and multilateral donors during 1997–2005, a period that begins with the agreement on the Kyoto Protocol under the United Nations Framework Convention on Climate Change. During this period, aid for energy totalled over US$64 billion or 6–10% of all development assistance. Annual energy assistance was virtually stagnant at approximately US$6–7 billion from 1997 to 2005, but preliminary evidence indicates that some efforts are being made to fill the resource gap and to mitigate climate change. Analysis suggests that there has been somewhat of a shift away from fossil fuel to lower greenhouse-gas-emitting projects. However, the increases in funding and shifts to low greenhouse gas technologies are fragile. Analysis also suggests that, unless development assistance for energy increases in the coming years, the influence of multilateral banks will diminish and their ability to encourage sustainable energy projects will decline. It should be noted that funding levels for projects do not tell the whole story. There is a continuing evolution of aid modalities under way, as development financing for project-based activities is supplemented with macro-economic and sector-wide assistance targeted at promoting policy reforms, institutional change and capacity building. Several challenges will need to be met in the future: to increase funding for the MDBs by finance ministers; to ‘green’ private sector funds to ensure that investments made today do not pollute tomorrow; and to overcome the lack of a common reporting format by standardizing the collection and reporting of data on investments for energy.

From Money to Action : Strategies in U.S. Support to Education in the Developing World

The United States provides substantial amounts of development assistance to lowand middle-income countries, much of it administered by the United States Agency for International Development (USAID). While the motives are complex, reasons include the desire to provide humanitarian relief, promote economic and social development, encourage political values and practices compatible with those of the U.S, and build international goodwill toward the U.S. International assistance agencies, such as USAID, have tended to utilize three mechanisms for allocating development assistance funds: problem oriented funding, sector-oriented project funding, and program funding. Of these, USAID has relied most heavily on project assistance, even at a time that many other donors are emphasizing program assistance. In awarding project assistance, USAID staff have choices about the mechanisms through which project funds can be converted into on-the-ground development activities, choices that can shape the eventual impact and effectiveness of the assistance. This paper examines the advantages and challenges associated with using these different mechanisms, with particular attention to aid to education, and suggests implications for the evaluation of development assistance activities. Background U.S. aid to education starts as money, approved by Congress, and intended for the support of education activities and institutions. But money, by itself, does not improve education. To be useful, those funds need to be converted into activities, e.g., training, instructional materials, classroom teaching, data systems. An important role of USAID and government staff in the receiving countries is to convert these inputs into improved educational processes that lead to more knowledgeable and effective graduates, able to participate meaningfully in the continued development of their own country. Consequently, USAID and government staff face two decisions: (a) what development activities to support and (b) what implementation mechanism to use in getting those activities to happen. To some extent, different funding mechanisms have emerged from different philosophies about development and the role of national governments and civil society in directing development funds. Nonetheless, the choice among mechanisms also needs to be grounded in pragmatic considerations of what is most likely to yield the intended development outcomes.

Reform Follows Function

Reform Follows Function

Telecom Reform and Poverty Alleviation in Kenya

Eradicating poverty is perhaps the single most important global development challenge. As rural areas are typically home to the majority of the poor in developing countries, the success of poverty alleviation interventions in rural areas will be important in determining if this challenge is met. This paper examines the relationship between telecom reform and poverty alleviation in Kenya, documenting how investments in poverty alleviation are made significantly more effective if basic telecom network services are available. It demonstrates that ICTs have the potential to maximize the multiplier effect of rural poverty interventions by empowering disadvantaged individuals and improving their immediate economic environment. In this context the national telecommunications policy framework and its impacts on the accessibility and affordability of ICTs in rural areas is increasingly important to poverty alleviation institutions. As a case study, the reform of the telecommunications sector in Kenya and its implications for that country’s rural poor are assessed. It is concluded that the current policy and the market structure it has created is resulting in a bypassing of rural areas in terms of access to ICTs and suggests some remedies for this situation. Finally, it is recommended that, given the importance of ICTs to their work, poverty alleviation institutions should consider making low cost investments in ICT infrastructure when appropriate while using their leverage as possessors of development assistance funds to lobby for changes in telecommunications sector policy regimes that hinder access to ICTs in rural areas.