Foreign Aid, Incentives and E–ciency: Can Foreign Aid Lead ...
CAPSTONE SEMINAR: FOREIGN AID, FOREIGN POLICY AND DEVELOPMENT MANAGEMENT
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Transcript of CAPSTONE SEMINAR: FOREIGN AID, FOREIGN POLICY AND DEVELOPMENT MANAGEMENT
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CAPSTONE SEMINAR:FOREIGN AID, FOREIGN POLICYAND DEVELOPMENT MANAGEMENT
PIA 2096/2504- Week Two
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Please ask questions and contribute to discussion
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This course examines several related themes:
1. First, we will examine the origins of foreign aid in the nineteenth and early twentieth century.
2. Following this, we look at the origins of foreign aid policy in the post-World War II period. Particular attention is given to the legacy of Vietnam as it impacted foreign aid and the impact of September 11.
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3. The discussion goes on to examine bilateral aid, multilateral organizations and the role of NGOs.
4. Finally, we will examines the counter-role relationships between donors and LDC program managers and concludes with a discussion of the moral ambiguities of foreign aid.
5. Focus will be on the twin issues of Unilateralism and the “Three Ds” of contemporary foreign aid.
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Three Views of Foreign Aid
1. Part of Balance of Power- Carrot and Stick Approach (based on exchange Theory)
2. Commercial Promotion: Focus on International Trade
3. Humanitarian Theory: Moral Imperative
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Reminder: The Issue and the Goal Here The issue of sustainable
International development should be examined from both a policy and an ethical dimension.
The thesis is that ultimately there have both been policy problems and moral ambiguities that have plagued technical assistance and foreign aid.
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The ProblemA Review
Ostensibly, the goals of foreign aid in 2009 remain what they were more than half a century ago.
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The Goals1. They were the reduction of material
poverty through economic growth and the delivery of social services;
2. the promotion of good governance through democratically selected, accountable institutions;
3. and reversing negative environmental trends through strategies of sustainable development.
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Ethics and Corruption
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The Problem-2 Ultimately, however, as a number
of economists have noted, “universal models of growth [did] not work well.”
Quote David Sogge, Give and Take: What’s the Matter with Foreign Aid? (London: Zed Books, 2002), p. 8.
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Foreign Aid
Historical ValuesAnd Debates
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Focus This Week: Overview of Sub-Themes
1. Impact of Colonialism and Imperialism
2. Cultural Chauvinism
3. Foreign Policy and Exchange Theory: Economic Motives
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Impact of History First, understanding that legacy is
important in any attempt to define the mixed legacy and the moral ambiguities that frame international assistance after 1960.
Secondly, historical values remain an important factor in influencing foreign aid in the twenty-first century.
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Henry Morton Stanley January 28, 1841- May 10, 1904
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Historical Legacy: Christian Missionaries Thirdly, non-governmental actors had a
major historical impact upon foreign aid policy.
Fourthly, The role of Christian missionaries in the 19th and century is an important component of this influence.
Note: The Role of Protestant Evangelical Groups in Southern Sudan
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Impact of Colonialism
1. Religion and Humanitarianism justified Colonialism
2. Humanitarian intervention also linked to war
3. Two Images of Missionaries
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Impact of Colonialism, Continued
3. Anthropology and Concept of Folk Societies
4. Twentieth Century: Beginning of Grants and Loans
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Cargo Cults and Folk Societies
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Foreign Aid Historical and Imperial Models Aborigines Protection Society,
the Society for the Extinction of the Slave Trade and for the Civilization of Africa
Colonial Development Act of 1929
Colombo Plan - 1955
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Western Images
Cultural Chauvinism
Race, Culture and Religion
And the Cynic
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Author of the Week: Charles Dickens
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Charles Dickens- February 7, 1812- June 9, 1870
Dickens was a fierce critic of the poverty, hypocrisy and social stratification of Victorian society
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Historical Quote Mrs. Jellyby...is a lady of very remarkable
strength of character [who] is at present…devoted to the subject of Africa, with a view to the general cultivation of the coffee berry-and the natives-and the happy settlement, on the banks of the African Rivers, of our superabundant population…educating the natives….[i]
[i] Charles Dickens, Bleak House (New York: Signet, 1964), pp. 49-50. The book was first published in 1853.
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The West Operated in a World of Values.
Movie Quote:
I was born backwards. That is why I work in Africa as missionary teaching little brown babies more backward than myself.[i]
[i] The film version of Agatha Chistie’s “Murder on the Orient Express” (1974). Transcribed by the author.
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Gender and Race
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Summary Theme
There are two threads that define that history, that of state to state power relationships and that of humanitarian non-governmental organizations operating within and between states.
Within the Context of Imperial and Religious History
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Legacy of Colonialism
Cultural Chauvinism
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Coffee Break
Ten Minutes
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Legacy of Colonialism-Two Anti-Slavery Movements
Assimilation and Modernization
Cultural Comfort
Development Theory
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Imperial Values-Reviewed Social Darwinism
Subject Peoples
Imperialism
Ethnocentralism
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According to Social Darwinism, humans were going through an evolutionary process in which the fittest would survive, and the weakest would perish.
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Dependency Complex Colonized: culturally dependent
Colonizer: culturally insecure
Negative Dependent Relationship
Extent to which this applies to U.S.?
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The Shakespeare Play
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Quote
According to Jean-Paul Sartre, colonialism denied “the title of humanity to the natives, and defining them as simply [absent] of qualities, and defining them as animals, not humans.”
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North-South Relationships
Dependent Development
Modernization Theory
Technical Assistance
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Commercial and Economic Motives
Foreign Policy and International Exchange
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Foreign Exchange Subsidies (either as grants or
loans at sub-market rates) historically have been a very reliable means of inducing desirable behavior internationally
Such subsidies go back to Ancient Greece
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Exchange Theory
Machiavelli emphasized the need for the exercise of brute power where necessary and rewards, patron-clientelism to preserve the status quo.
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Historical Legacy First, there is a long history of
financial transfer and exchange that in part defined international diplomacy.
Secondly, between 1500 and 1960,
colonial empires defined a system of international governance that impacted on international assistance in the twentieth century.
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Exchange as Patron-Clientism
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Foreign Exchange
During the Renaissance (1400-1600) the Medicis created an alliance based on the use of financial support as an instrument of diplomacy
Financially, by the Nineteenth Century, Concessional Loans came to DominateState to State relationships (esp. Latin America)
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British Financing Railways Serie La Trochita
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Exchange Theory Social change and stability as a process
of negotiated exchanges between parties (Individuals and Groups.
Social exchange theory posits that all human relationships are formed by the use of a subjective (Human) cost-benefit analysis and the comparison of best alternatives.
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Economic Theories- Discussion
Keynesianism
Mercentilism
Neo-Classical Economics (Adam Smith)
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British economist John Maynard Keynes
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Keynesianism and Colonies: Basis of Foreign Aid
Fiscal Policy- Grants in Aid
Monetary Policy- Control Trade
Labor Controls- Low Costs
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Global Power From Empires to UN (UNDP)
Multi-Lateral Institutions- IMF and World Bank, and Regional Banks
Cold War Competition
The Super-power and unilateralism
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Modernization: Basis of Economic Change Assumptions
Thus a understanding development should occur at two levels, the relationship between the individual, a socialization process;
The extent to which national ethical and moral values impact upon the individual.
The result is said to be an urban, modern secular person. (Western)
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Impact of History- Review Colonialism defined authority in most of
what we call the developing world until well after the middle of the twentieth century;
Economic Relationships are embedded in that history
Foreign aid and technical assistance grew out of that heritage.
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South Africa, 1900
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Kenya, 1952
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The Counter Narrative: A Reminder of Goal of Course
What Emory Roe calls the development of the counter narrative is
to conceive of a rival hypothesis or set of hypotheses that could plausibly reverse what appears to be the case, where the reversal in question, even it proves factually not to be the case, nonetheless provides a possible policy option for future attention because of its very plausibility.
Quote from Emery Roe, Except- Africa: Remaking Development, Rethinking Power (New Brunswick, NJ: Transaction Publishers, 1999), p. 9.
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Next Week U.S. History of Foreign Aid
Prior to 1948
Focus on inherited processes and values
Case Study: The Inter-American Highway
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Book Discussion
John Madeley, et. al. When Aid Is No Help (London: Intermediate Technology Publications, 1991).
Next Week Along with Emma
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John Madeley (second from Left) best-selling author, journalist and broadcaster of international economic and social development issues
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Intermediate Technology Group
Founded by E.F. Schumacher
“Small is Beautiful”
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The Author: From His Website John Madeley is a best-selling author,
journalist and broadcaster, specializing in economic and social development issues, notably international trade, transnational corporations, food and agriculture, aid and human rights.
He is the author of many books, newspaper articles and other publications. Based in Reading, he is a Church of England lay minister. Keeps in trim with medium-distance cycling.
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The Author
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Thesis:Discussion
Projects are the Problem
NGOs are the Solution?
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The Crux of the Matter
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Focus on Projects
Why Projects Fail?
The Issue of Sustainability
NGOs and the Search for Money
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Limits of Project Approach
Issue of Poverty
Foreign Aid Projects- Money Flows to the Middle Class
The Mali Village: Too poor to Qualify (Lack of Skills to do the Project)