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=== Definition === |
=== Definition === |
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There has been no unified definition of "aid dependence" in the world. The more representative explanation is that aid dependence is a state of mind, in which the recipient country loses its ability to develop and think, thus giving up control over aid.<ref>{{Cite book|url=http://worldcat.org/oclc/768307584|title=Aid Dependence and Donor Policy: The Case of Tanzania with Lessons from Bangladesh's Experience.|last=Sobhan, Rehman.|first=|date=2000|publisher=University Press Ltd|year=|isbn=9840513362|location=|pages=|oclc=768307584}}</ref> |
There has been no unified definition of "aid dependence" in the world. The more representative explanation is that aid dependence is a state of mind, in which the recipient country loses its ability to develop and think, thus giving up control over aid.<ref>{{Cite book|url=http://worldcat.org/oclc/768307584|title=Aid Dependence and Donor Policy: The Case of Tanzania with Lessons from Bangladesh's Experience.|last=Sobhan, Rehman.|first=|date=2000|publisher=University Press Ltd|year=|isbn=9840513362|location=|pages=|oclc=768307584}}</ref> There is also a definition states that a country is aid dependent when it is unable to perform many basic functions of government, such as providing basic public services like schools and clinics, without foreign aid. <ref name=":0">{{Cite book|title=Real Aid: Ending Aid Dependency|last=Thomas|first=Anna|last2=Viciani|first2=Lacopo|last3=Tench|first3=Jonathan|last4=Sharpe|first4=Rachel|last5=Hall|first5=Melissa|last6=Martin|first6=Matthew|last7=Watts|first7=Richard|publisher=ActionAid|year=2011|isbn=|location=|pages=17-36}}</ref> |
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=== The measure of aid dependency === |
=== The measure of aid dependency === |
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The table below shows the most 10 aid dependent countries. The most aid dependent countries are often countries that have suffered from shock or have developed particularly difficult due to structural reasons.<ref name=":0" /> |
The table below shows the most 10 aid dependent countries. The most aid dependent countries are often countries that have suffered from shock or have developed particularly difficult due to structural reasons.<ref name=":0" /> |
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|+the most 10 aid dependent countries<ref>{{Cite web|url=https://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS|title=Net ODA received (% of GNI) {{!}} Data|website=data.worldbank.org|access-date=2019-04-11}}</ref> |
|+the most 10 aid dependent countries<ref name=":3">{{Cite web|url=https://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS|title=Net ODA received (% of GNI) {{!}} Data|website=data.worldbank.org|access-date=2019-04-11}}</ref> |
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!Net ODA received (% of GNI) |
!Net ODA received (% of GNI) |
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== Causes of aid dependence == |
== Causes of aid dependence == |
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Aid dependence is influenced by many factors, directly the strength and length of aid.<ref name=":4">{{Cite web|url=https://www.twigh.org/twigh-blog-archives/2015/7/31/aid-dependency-the-damage-of-donation|title=Aid Dependency: The Damage of Donation|website=This Week in Global Health|language=en-US|access-date=2019-05-12}}</ref>The root cause of aid dependency is more complicate. |
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Scholars generally believe that high-intensity assistance, that is, aid accounts for a large proportion of recipient countries' GDP, is the main cause of aid dependence.<ref name=":2">{{Cite journal|last=Sun|first=Tongquan|date=2008|title=国际发展援助中“援助依赖”的成因|url=http://kns.cnki.net/kcms/detail/detail.aspx?dbcode=CJFD&filename=GJJH200806015&dbname=CJFD2008|journal=International Economic Cooperation|volume=|pages=|via=}}</ref> |
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=== The underdeveloped economy and weak politic system === |
=== The underdeveloped economy and weak politic system === |
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the underdeveloped economy is one of the reasons for receiving aid. For a long time, those countries lack infrastructure for economic construction and management people. Therefore, in the process of receiving assistance, the recipient countries are basically in a passive position. They can only passively accept the construction plan formulated by the developed aid countries, and cannot build an economic system according to their own national conditions and needs.<ref name=":2" /> |
the underdeveloped economy is one of the reasons for receiving aid. For a long time, those countries lack infrastructure for economic construction and management people. Therefore, in the process of receiving assistance, the recipient countries are basically in a passive position. They can only passively accept the construction plan formulated by the developed aid countries, and cannot build an economic system according to their own national conditions and needs.<ref name=":2">{{Cite journal|last=Sun|first=Tongquan|date=2008|title=国际发展援助中“援助依赖”的成因|url=http://kns.cnki.net/kcms/detail/detail.aspx?dbcode=CJFD&filename=GJJH200806015&dbname=CJFD2008|journal=International Economic Cooperation|volume=|pages=|via=}}</ref> |
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=== The interests of aid donors and "aid colonialism" === |
=== The interests of aid donors and "aid colonialism" === |
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The donor countries aid to underdeveloped countries is always mixed with their political or economic intentions. They will not help those industries that may pose a threat to the domestic industry of the donor country, but often arrange assistance activities according to the needs of their own industrial development. <ref>{{Cite journal|last=Morgenthau|first=Hans|date=1962|title=A Political Theory of Foreign Aid.|url=http://www.journals.cambridge.org/abstract_S0003055400077807|journal=American Political Science Review|language=en|volume=56|issue=02|pages=301–309|doi=10.2307/1952366|issn=0003-0554|via=}}</ref> When multiple aid agencies find that an aid area is not in their interests, even if the recipient country is in urgent need, it may be unattended; and in areas that are in their interest, there will be assistance from multiple countries or institutions. The phenomenon of repeated investment and over-investment has caused severe dependence on aid in this field.<ref name=":2" /> |
Aid industry faces the risk of forming a new type of colonialism in which the western development and progressive ideas are used to influence and control the power of the government receiving aid. <ref name=":4" />The donor countries aid to underdeveloped countries is always mixed with their political or economic intentions. They will not help those industries that may pose a threat to the domestic industry of the donor country, but often arrange assistance activities according to the needs of their own industrial development. <ref>{{Cite journal|last=Morgenthau|first=Hans|date=1962|title=A Political Theory of Foreign Aid.|url=http://www.journals.cambridge.org/abstract_S0003055400077807|journal=American Political Science Review|language=en|volume=56|issue=02|pages=301–309|doi=10.2307/1952366|issn=0003-0554|via=}}</ref> When multiple aid agencies find that an aid area is not in their interests, even if the recipient country is in urgent need, it may be unattended; and in areas that are in their interest, there will be assistance from multiple countries or institutions. The phenomenon of repeated investment and over-investment has caused severe dependence on aid in this field.<ref name=":2" /> |
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== History and current situation == |
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[[File:Aid dependency.png|thumb|the trend of aid dependency in low income country<ref name=":3" />]] |
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the chart in the right shows how aid dependency change after 2000. After 20 years of continuous rising, the average aid dependency of low-income countries has fallen sharply over the past decade<ref name=":0" />and has fallen below 10% since 2008. |
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== sources I want to use in my article == |
== sources I want to use in my article == |
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Revision as of 05:44, 12 May 2019
Definition and the measure of aid dependency
Definition
There has been no unified definition of "aid dependence" in the world. The more representative explanation is that aid dependence is a state of mind, in which the recipient country loses its ability to develop and think, thus giving up control over aid.[1] There is also a definition states that a country is aid dependent when it is unable to perform many basic functions of government, such as providing basic public services like schools and clinics, without foreign aid. [2]
The measure of aid dependency
A way to identify aid dependency is the percentage of aid funds of government budget expenditure (aid/ budget expenditure). Another way to measure dependency is to calculate how much of the Gross National Income that is made up of aid flows(aid/GNI).[2]
The problems of aid dependency
Weaken self-development capabilities
Aid dependence makes countries reluctant to develop or finance their own development. Nationals are unwilling to save, invest, produce goods for export or domestic consumption, and even work. The government is also not inclined to implement policies that encourage these trends.[2] Aid dependence has reduced the government's incentive to adopt good policies, and massive flow of project aid overwhelm the government's management capacity. On the African continent, there has been a phenomenon of hefty flow of aid but low economic growth.[3]
Loss of policy autonomy
Governments that rely on aid may lose space to design and implement their local development policies. The direct impact is a policy that donors may insist on requiring recipient countries to prioritize the implementation of donors. The indirect effect is that countries are busy with donors so that they fail to develop their own alternative policies, or because aid distorts government spending on specific sectors. [2]
The volatility of aid flows
There is a huge gap between actual aid and commitment, and donors' lack of transparent reporting to the government, which makes it difficult for countries that rely on aid and their citizens to plan long-term and sustainable spending. [2]Also, donor payment procedures can be cumbersome, and even if funds are in place, there may be long-term and unpredictable lags before the government can use them. [3]
The most aid dependent countries
The table below shows the most 10 aid dependent countries. The most aid dependent countries are often countries that have suffered from shock or have developed particularly difficult due to structural reasons.[2]
| country | Net ODA received (% of GNI) |
|---|---|
| South Sudan | 64.4 |
| Tuvalu | 45.3 |
| Marshall Islands | 26.9 |
| Central African Republic | 26.0 |
| Micronesia, Fed. Sts. | 25.1 |
| Somalia | 25.1 |
| Malawi | 24.6 |
| Kiribati | 21.2 |
| Liberia | 20.8 |
| Afghanistan | 19.4 |
| Author | JESSEYAO |
|---|---|
| Language | middle English |
Causes of aid dependence
Aid dependence is influenced by many factors, directly the strength and length of aid.[5]The root cause of aid dependency is more complicate.
The underdeveloped economy and weak politic system
the underdeveloped economy is one of the reasons for receiving aid. For a long time, those countries lack infrastructure for economic construction and management people. Therefore, in the process of receiving assistance, the recipient countries are basically in a passive position. They can only passively accept the construction plan formulated by the developed aid countries, and cannot build an economic system according to their own national conditions and needs.[6]
The interests of aid donors and "aid colonialism"
Aid industry faces the risk of forming a new type of colonialism in which the western development and progressive ideas are used to influence and control the power of the government receiving aid. [5]The donor countries aid to underdeveloped countries is always mixed with their political or economic intentions. They will not help those industries that may pose a threat to the domestic industry of the donor country, but often arrange assistance activities according to the needs of their own industrial development. [7] When multiple aid agencies find that an aid area is not in their interests, even if the recipient country is in urgent need, it may be unattended; and in areas that are in their interest, there will be assistance from multiple countries or institutions. The phenomenon of repeated investment and over-investment has caused severe dependence on aid in this field.[6]
History and current situation
the chart in the right shows how aid dependency change after 2000. After 20 years of continuous rising, the average aid dependency of low-income countries has fallen sharply over the past decade[2]and has fallen below 10% since 2008.
sources I want to use in my article
data from world bank, include the rank of aid dependency country, the trend of degree of aid dependency from 1965-2017. I will use these data in section “The most aid dependent country”, and “History, current situation, and trend of aid dependency”. In addition, I will put a line chart on my page to let reader have a direct impact.
4). Kpodar, K., & Le Goff, M. (2011). Do Remittances Reduce Aid Dependency?. IMF Working Papers, 1-31. [8]
This paper analyzed how remittances affect aid flows; It indicated that remittances can lower aid dependency when they are invested in human and physical capital rather than in consumption. Some information on this article will be cited in section “Aid dependency reduction”.
5). Collier, P. (1999). Aid 'dependency': a critique. Journal of African Economies, 8(4), 528-545. [3]
The author indicated that aid will causes dependency of poor on rich economies. He explained why aid dependency is a problem in five aspects. One is Aid reduces the government’s motivation to launch policies that stimulate economic growth, the second is the dependency will transfer from poor family’s dependency to aid-receiving country’s dependency. Thirdly, aid will reduce private investment. Also, unstable aid can lead to economic instability. Finally, the reality is that aid is declining year by year, and the people of the aid-receiving countries can no longer continue to rely on aid. The information in this article will appear in section “The problems of aid dependency” to illustrate that aid dependency is a problem.
references
- ^ Sobhan, Rehman. (2000). Aid Dependence and Donor Policy: The Case of Tanzania with Lessons from Bangladesh's Experience. University Press Ltd. ISBN 9840513362. OCLC 768307584.
- ^ a b c d e f g Thomas, Anna; Viciani, Lacopo; Tench, Jonathan; Sharpe, Rachel; Hall, Melissa; Martin, Matthew; Watts, Richard (2011). Real Aid: Ending Aid Dependency. ActionAid. pp. 17–36.
- ^ a b c Collier, P (1999-12-01). "Aid 'dependency': a critique". Journal of African Economies. 8 (4): 528–545. doi:10.1093/jae/8.4.528. ISSN 0963-8024.
- ^ a b "Net ODA received (% of GNI) | Data". data.worldbank.org. Retrieved 2019-04-11.
- ^ a b "Aid Dependency: The Damage of Donation". This Week in Global Health. Retrieved 2019-05-12.
- ^ a b Sun, Tongquan (2008). "国际发展援助中"援助依赖"的成因". International Economic Cooperation.
- ^ Morgenthau, Hans (1962). "A Political Theory of Foreign Aid". American Political Science Review. 56 (02): 301–309. doi:10.2307/1952366. ISSN 0003-0554.
- ^ Le Goff, Maelan; Kpodar, Kangni (2011). "Do Remittances Reduce Aid Dependency?". IMF Working Papers. 11 (246): 1. doi:10.5089/9781463923259.001. ISSN 1018-5941.