By Jan-Henrik Petermann
The finish of the chilly battle has caused many donors of reputable improvement suggestions (ODA) to essentially realign their international relief and alternate kinfolk. regardless of fresh development in untying ODA and a couple of comparable efforts to reinforce the general potency of overseas cooperation with the poorest nations, it continues to be unexplained why a few OECD states have liberalised their bilateral programmes to a substantial quantity – while others have endured to exploit international relief as a way to advertise family exports. Jan-Henrik Petermann widens the scope of past macro-analyses of ‘system-driven’ reorientations in tying practices within the wake of 1989/90, inquiring into donors’ nationwide parameters of policy-making on the strategic nexus among exterior alternate and overseas improvement.
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Extra info for Between Export Promotion and Poverty Reduction: The Foreign Economic Policy of Untying Official Development Assistance
2). Nonetheless, the conceptual and political turn from neo-Keynesianism to neoclassical development economics since the mid-1960s soon changed the perspective on how poor societies should be assisted in the process of development. In monetarist development theory, the activist role of the state was heavily curtailed to make room for ‘a model driven by market incentives and a strong private sector’ (Wade, 1990). The notion that Southern nations and dependent territories ought to receive ODA in order to expand their industrial base and allocate resources more efficiently remained largely unquestioned.
1). More fundamentally, the advocates of aid untying hoped that their initiative would help coordinate bilateral development policies more comprehensively, thus facilitating the resolution of an aid-related ‘prisoner’s dilemma’33 and permitting better alignment of donors’ priorities in recipient states, possibly 32 Two major clusters of motivations have been fleshed out so far. While the ‘recipient need’ model posits ‘that the aid received by each country is proportional to its economic and welfare needs, […] the alternative donor interest model assumes that the distribution of aid reflects the foreign policy interests of the donor country’ (Maizels/Nissanke, 1984: 881).
Introduction 33 become inclined to do the same – in a step-by-step fashion, multilateral coordination of national development policies would be upgraded significantly. 8 Hence, besides empowering recipients and making local projects more efficient, the abandonment of tying policies might pave the way for the creation of a more encompassing and robust monitoring system of national development policies under the auspices of the OECD. 9 Contextualising the debate: Aid efficiency and the paradigms of international development During the UN’s ‘First Development Decade’ in the 1960s, developmental progress was predominantly defined and measured in macroeconomic terms.
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