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Contributions from
the Column
Media
Does Asia still need development assistance?
German development assistance from Hallstein to the oil crisis
More help is not always helpful
Development cooperation must become more efficient
10/2006 |
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Development cooperation must
become more efficient
Heinz Ahrens (Ed.):
Development cooperation – Evaluation and new approaches.
Berlin, Duncker & Humblot 2005, 141 p., ¤64.00, ISBN 3-428-11867-7
In this anthology, well-known academics assess the current state of development cooperation. They point to the fact that Germany made a firm commitment to increase funding for the Millennium Development Goals. Nevertheless development assistance, expressed as a proportion of total capital flows to developing countries, is decreasing. The main thesis of the book is that budget shortfalls have prompted questions on the economic efficiency of development cooperation. The majority of the authors argue that increased effectiveness demands – among other things – more practice-oriented research.
One example is the debate on the macroeconomic impact of international aid. According to the book, there is general agreement that efficiency depends on the prevailing political, institutional and economic conditions in recipient countries. Nonetheless, analyses on exactly what factors must be taken into account are too general. This is bad, because if development assistance is to reduce poverty levels, feasible distribution criteria are needed. Too little emphasis is given to the quality of governance in this context. The authors believe that a reform of poverty reduction approaches is unavoidable. They call for greater participation and a stronger focus on the creation of social and business-related institutions.
The authors welcome collaboration of official development cooperation with private enterprise. It is important that so-called “lead firms” are involved which play a leading role in their production networks, generate innovation and set standards. Political backing, and a clear definition of the conditions for cooperation are needed, to ensure that both private enterprise and development cooperation benefit. In this regard, professionalism is still lacking in government institutions of development cooperation. The authors consider that financial cooperation is well positioned with its development loans and interest subsidies linked to market mechanisms.
The book sets out the essential proceedings of the 2004 Annual Meeting of the Research Committee on Development Economics of the German Verein für Socialpolitik (Economic Association of Social Politics). The consensus of opinion was that a general restructure of development cooperation is inevitable in view of our obligations with regard to the MDGs. The detailed essays are decidedly academic and not always easy to read.
Regine Reim
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