Brave New World: A Literature Review of Emerging Donors and the Changing Nature of Foreign Assistance

Abstract: In this paper, we look at the scale and scope of emerging donors, many of which are developing economies themselves. On the basis of a survey of the literature, we find that estimates of annual aid flows from new donors (so-called non-DAC donors) vary greatly and are somewhere between $11 billion and $41.7 billion, or 8 and 31 percent of global gross ODA. We find that new donors are not a monolithic group but instead represent three distinct models of aid delivery, which we describe as the DAC Model, the Arab Model and the Southern Model.

While we see the need to increase transparency and accountability of aid flows across these delivery models, we do not see a convergence to the DAC model. Rather, emerging donors may follow different paths, in accordance with their own traditions and standards. We argue that encouraging aid transparency, especially reporting data on project-level assistance, must be the core focus of the aid community. To engage the non-DAC donors, the forum for international aid coordination might need to be moved away from the OECD-DAC platform; DAC could instead serve as one donor caucus within a larger international system of aid reporting.

Post Description

  • Publication year: 2011
  • Publication Type: Research Paper
  • Form of Cooperation: Comprehensive (Lines of credit, grants and loans, and technical assistance).
  • Cooperation Context: Multilateral
  • Sector: Multi-sectoral
  • The Institution (Publication): Center for Global Development
  • Author (and co-authors): Julie Walz and Vijaya Ramachandran
  • Keywords: South-South cooperation; Development aid; Emerging economies as donors; BRICS; OECD-DAC Model; Arab Model; Southern Model; Differences in aid delivery; Aid transparency; Triangular cooperation
  • Link: https://www.cgdev.org/sites/default/files/1425691_file_Walz_Ramachandran_Brave_New_World_FINAL.pdf

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