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| Development Aid - World |
Page 1 of 2 History of development assistance in the worldHistory of development assistance in the world in the sense of providing aid to deal with consequences of conflict and starting up regular economic growth goes back to the end of the Second World War. Development and development aid have become a permanent agenda for not only the rich states but also for international organizations and financial institutions. International Monetary Fund and the World BankTwo international financial institutions were founded as part of the post-war reconstruction of Europe and the Bretton-Wood conference agreements (July 1944): the International Monetary Fund and the International Bank for Reconstruction and Development (the World Bank). Later on the Marshall Plan was added as a specific temporary tool of US help for the Europe. The IMF and the World Bank remained as permanent institutions focused on international economy and aid. Member countries contribute to IMF by lending their currency. The World Bank gains its finances from the contributions of countries. The goal of IMF (www.imf.org) is to stabilize currency rates and helping to countries with financial and economic problems as well as providing loans to countries which are in difficulties in their balance of payments. Country thus agrees to economic reforms in exchange for help and loans. The World Bank (www.worldbank.org) provides loans and grants for projects in developing countries and from the end of 20th century it focuses on fulfillment of the development goals of the UN, particularly to eliminate poverty. Its goal is to encourage economic growth, investment and decrease unemployment. Both institutions have their supporters as well as the critics. That is because as aresult of unpaid loans and increasing interests the number of indebted developing countries rises which are not even able to pay off the interests, not even talking about setting off on a path of economic growth That is also why in 1996, after much pressure from non-governmental organizations the Initiative for Providing Special Type of Help for the HIPC – Heavily Indebted Poor Countries. It should allow a partial cancellation of the debt for the HIPC and after the country completes certain economic conditions, it should receive money for development from the trustee fund of the World Bank. This program is followed by the MDRI – Multilateral Debt Relief Initiative which was accepted on G8 summit in Gleneagles, July 2005. It assumes more radical remission of debts to IMF, World Bank and African Development Fund. Some critics of the IMF and the World Bank also point out the conditionality of providing loans while conditions concerning structural economic reforms and privatization do not always lead towards economic growth. Critics of international financial institutions also remind us that during Cold War these institutions did not respect human rights by providing loans for dictatorship regimes that were inclined to the United States or the supranational corporations. A reform of the Bretton-Woods institutions has been discussed more visibly ever since 2008 in connection with the global economic crisis. The UN AgenciesBesides the international monetary institutions, many agencies and programs of UN started developing and financing development programs after World War II. Activities in more than 130 countries are financed within the framework of United Nations and these are focused on helping the refugees, children, the poor and starving. There are also projects of environmental protection, protection of human rights and equality of women. Programs, funds and initiatives of the UN related to development aid:
With the system of UN, precisely with Economic and Social Committee, other specialized agencies focusing on development co-operate:
Millennium summit on the UN and development goals All UN agencies as well as international financial institutions are part of the so-called Millennium development goals. At the UN summit in September 2007, more than 170 heads of states and governments agreed upon a program which should systematically solve the problem of poverty in the world. This plan to eliminate extreme poverty around the globe is based on eight specific goals with clearly set indicators and partial goals which should be gradually followed by both developing and developed countries. Millennium development programs are timed until 2015 but already at this point we are able to say that they will not be achieved and the UN countries will be re-assessing. Millennium development goals:
Further information: www.un.org/millenniumgoals, www.svetbezchudoby.sk Organization for Economic Co-operation and Development (OECD)The biggest amount of development aid in the world is provided by countries who are members of the OECD – Organization for Economic Co-operation and Development (www.oecd.org). It was founded in 1961 as a successor to the Organization for European Economic Co-operation and its goal is to help developing and underdeveloped countries. In 2009 it had 30 member states and the membership means a commitment to co-operate in development of poor countries. (Slovakia has been a member since 2000) World Trade Organization (WTO) – Development Agenda from DohaWith the development politics the agenda of WTO is connected. From January 1995 it is the successor of the General Agreement on Tariffs and Trade (GATT). WTO is focused on liberalization of international trade. Discussion on development agenda which should help the developing countries to join the international trade system began in November 2001 in Doha, Qatar. Discussions have not reached an agreement even in the end of 2008 – it was impossible to reach a compromise on the issue of lowering agricultural subsidies and import tariffs. At the Ministers’ conference of WTO in Hong Kong in December 2005, an initiative was created – the Aid for Trade initiative to provide help for trade support. Its aim is to help the developing countries to build up a competitively able economy and infrastructure which would make them join in the international trade more easily. Effectiveness of development aid – Monterrey consensus and Paris declarationIn 2002, to effectively deal with the problem of poverty in the world and to start economic growth of underdeveloped countries, at the UN conference “Financing for Development” in Mexican Monterrey the states accepted a political declaration called the Monterrey consensus. It creates the basis for a new way of co-operation between developing and developed countries. It deals with more areas of co-operation:
Not only principles but also specific plans and indicators to increase quality/effectiveness of the aid have been set in the international agreement accepted in March 2005 in Paris – the so-called Paris Declaration on Effective Help(http://www.oecd.org/dataoecd/11/41/34428351.pdf).
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