New Donors

Click to increase image sizeClick to decrease image size Notes 1The DAC is the aid forum of the OECD and consists of the European Union and 23 OECD member countries. 2Moreover, part of this increase comes from more complete reporting of non-DAC donors' aid contributions by AidData over time. 3 CitationDoucouliagos and Manning (2009) analyze the provision of development aid from Greece, Luxembourg, and Portugal, three rather new members of the DAC, and find that their aid does not specifically target poorer countries. 4See CitationNunnenkamp and Thiele (2006) and the literature provided there. 5Much of the available evidence is descriptive, with CitationECOSOC (2008) and CitationKragelund (2008, Citation2010) providing good overviews for essentially all non-DAC donors. 6This approach can be traced back to the Principles of Peaceful Coexistence adopted at the Bandung Conference of Asian and African states in 1955 (Lammers 2007). 7However, the previous literature raises doubts that DAC aid rewards good governance, as the DAC's rhetoric suggests (one example is CitationAlesina and Weder 2002). 8 CitationLee (2012) compares the allocation of DAC aid with aid provided by South Korea. Lee finds that Korea's aid is neither correlated with socioeconomic development or poverty in the recipient countries, nor with its own strategic motives. The lacking poverty orientation resembles the results in CitationDreher et al. (2011), whereas strategic interest variables enter significantly, but with unexpected signs in Dreher et al. 9For instance, Norway belongs to the group of the most generous donors but ranks last according to the trade component of the Commitment to Development Index 2011, published by the Center for Global Development (CitationRoodman 2011). 10For instance, CitationBräutigam (2011:761) notes that "the Chinese focus on turnkey infrastructure projects is far simpler and does not overstretch the weak capacity of many African governments." 11However, aid from Arab donors is largely untied (CitationManning 2006:374). 12It has been estimated that tied aid increases costs by 5%–30% (CitationKnack and Smets 2012). However, the costs of tied aid may be lower in the case of non-DAC donors (CitationPark 2011:47–48). 13See CitationKim and Lightfoot (2011) for a similar conclusion. 14See CitationDreher (2009). CitationÖhler, Nunnenkamp, and Dreher (2012) provide evidence that conditionality can work if designed properly. 15The Busan Partnership for Effective Development Cooperation, agreed upon at the 4th High Level Forum in Korea in November/December 2011, offers "an open platform that embraces diversity, providing a forum for the exchange of knowledge and the regular review of progress" (http://www.oecd.org/dataoecd/54/15/49650173.pdf). 16It is promising that China has published a white paper on foreign aid (CitationState Council 2011). However, bilateral aid data, including sectoral breakdowns and detailed information on aid concessionality, remain unavailable to the public.