The Future of Foreign Aid: Development Cooperation and the by Andy Sumner;Richard Mallett

By Andy Sumner;Richard Mallett

The panorama of overseas relief is altering. New improvement actors are at the upward thrust, from the 'emerging' economies to various deepest foundations and philanthropists. while the character of the worldwide poverty 'problem' has additionally replaced: many of the world's bad humans now not reside within the poorest nations.

Building on an educational assessment of study on overseas reduction, Sumner and Mallet define a brand new imaginative and prescient of the help approach – an 'Aid 2.0' – creating a sequence of coverage proper proposals for worldwide improvement cooperation within the twenty-first century.

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First, pockets of poverty call for aid, regardless of where they occur. Second, spillover effects of MIC growth, such as climate change, may negatively affect LICs and the poor. This provides an argument for directing development assistance towards public goods and aid flows to countries that are part of the solution to the underlying negative externalities. 0 Source: Data from Sumner (2012c) drawing upon IMF (2011: 53–4) and World Bank (2011). 1057/9781137298881 A New Vision for Aid 45 knowledge that can then be useful for development assistance to LICs, such as implementing social safety nets.

In light of the shifting landscape of foreign aid, the changing distribution of global poverty, and the current level of understanding of what aid can and cannot achieve, Part II seeks to sketch out a new vision for aid in the future. A point of departure is to consider how the future might look using different growth scenarios. This can be done by drawing upon an approach taken in Karver et al. (2012) and Sumner (2012c) which involves generating three different growth scenarios as follows: • • • An optimistic scenario assumes that for 2009–2020 and 2009–2030 average incomes will rise at the average annual growth rate of the GDP Purchasing Power Parity (PPP) per capita (pc) data in the IMF’s World Economic Outlook (WEO 2012) for the period 2009–2016 (2011–2016 data are projections).

Making clear sense of the extensive aid effectiveness literature is a highly challenging exercise. Nonetheless, and taking the aforementioned criticisms into account, there are still some broad points upon which most (or at least many) would probably agree. g. g. , 2005b), or whatever other outcome is desired – but that there are many factors beyond ‘good’ recipient policies that mediate its impact (McGillivray, 2003: 2). Such factors within recipient countries might include, inter alia: the colonial experience (Angeles & Neanidis, 2009); the level of environmental vulnerability (Guillaumont & Chauvet, 2001); and whether they are experiencing negative terms of trade shocks (Collier & Dehn, 2001).

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