Transcript Multilateral Aid Agencies

Role of Multilateral Aid Agencies
in Poverty Reduction
Dr. muhammad G. Sarwar
Sarwar_mg@ yahoo.com
Civil Service College, Dhaka
10 July 2011
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Presentation Contents
• Foreign Aid Flow in to Bangladesh: trend
analysis
• Dominant Players in Development Assistance
in Bangladesh: the gang of four
• Multilateral Donors
– World Bank/IDA
– ADB (Asian Development Bank)
– UN System
– Pros and Cons of Multilateral Assistance
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Periodic Flow of Foreign Aid 1972-2010
(in billion US$)
FY
Food Aid
Commodity
Aid
Project Aid
Total Aid
Average
Yearly Aid
1971-1980
2.090
2.768
1.749
6.607
660
1981-1990
2.346
4.435
7.340
14.121
1.412
1991-2000
1.537
3.169
10.911
15.617
1.562
2001-2010
613
536
15.104
16.253
1.625
Total
6.586
10.908
35.104
52.598
1.315
% share
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21
67
100
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Periodic Flow of Foreign Aid 1972-2010
(in billion US$)
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Types of Foreign Aid 1972 -2010
(in %)
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Ten largest Donors in Bangladesh
FY 1972-2010 (in million US$)
SL
Donors
Grant
Loan
Total
Share (%)
1
World Bank
269
11664
11933
22.69
2
Asian Development
70
8114
8184
15.56
Bank
3
Japan
3308
3753
7061
13.42
4
USA
2,787
763
3,550
6.75
5
UN System (except
2744
20
2764
5.25
UNICEF)
6
Canada
2087
16
2103
4.00
7
UK
1973
89
2062
3.92
8
Germany
1436
268
1704
3.24
9
European Union
1534
48
1582
3.01
10
Netherlands
1,078
71
1,149
2.18
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Ten Largest Donors in Bangladesh
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Multilateral Donors
• World Bank / IDA / IBRD
• ADB (Asian Development Bank)
• UN System (UNDP, UNICEF, IFAD, FAO, WFO,
WHO, ILO, etc.)
• EU (European Union)
• IDB (Islamic Development Bank)
• OPEC (Organization of Petroleum Exporting
Countries)
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World Bank: an introduction
• World Bank, established in 1944, is
headquartered in Washington, D.C.
• World Bank is a vital source of financial and
technical assistance to developing countries
around the world.
• mission is to fight poverty with passion and
professionalism
• made up of two unique development
institutions owned by 187 member countries:
the IBRD and the IDA.
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World Bank: an introduction (contd.)
• IBRD aims to reduce poverty in middle-income and
creditworthy poorer countries, while IDA focuses on
the world's poorest countries.
• Their work is complemented by that of the IFC, MIGA
and the ICSID.
• provide low-interest loans, interest-free credits and
grants to developing countries for a wide array of
purposes that include investments in education,
health, public administration, infrastructure, financial
and private sector development, agriculture and
environmental and natural resource management.
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IDA Commitment and Disbursement
(billion US $)
Commitment
Disbursement
Pipeline on 1st July
2010
Project Aid
11.93
9.42
2.69
Commodity Aid
2.49
2.24
0.25
Total Aid
14.63
11.94
2.69
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IDA Commitment and Disbursement
(billion US $)
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Trend of IDA Commitment and Disbursement
(million US $)
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World Bank CAS for Bangladesh (FY11-14)
• new strategy supports the country’s ambitious
aspirations to reduce the poverty rate from 40
to 15 percent and achieve middle-income
status by 2021.
• It proposes record levels of technical and
financial support, including IDA lending of
more than $ 6 billion in the coming four years
based on continued strong country
performance.
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World Bank CAS for Bangladesh (FY11-14)
(contd.)
• Areas of WB Investment:
– economic infrastructure
– reduce vulnerability to the effects of climate
change
– maintain long-standing support for human
development and social welfare
– enhance core governance and strengthen local
government
– empower communities
– regional cooperation in South Asia.
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ADB (Asian Development Bank)
• ADB in Asia and the Pacific Region
• ADB's vision is ‘an Asia and Pacific region free of
poverty’
• ADB's mission is to help its developing member
countries reduce poverty and improve living
conditions and quality of life
• ADB is a multilateral development bank, dedicated to
reducing poverty in Asia and the Pacific region
through inclusive economic growth, environmentally
sustainable growth, and regional integration.
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ADB (contd.)
• ADB was established in 1966 under the Agreement
Establishing the Asian Development Bank (Charter),
which is binding upon the member countries that are
its shareholders. As of 31 December 2010, ADB had
67 members, of which 48 were drawn from Asia and
the Pacific region.
• ADB is headquartered in Manila, Philippines and has
offices worldwide including representative offices in
North America (Washington, DC), Europe (Frankfurt),
and Japan (Tokyo).
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ADP: Policies and Strategies
• In 2008, ADB's Board of Directors approved Strategy
2020 for the period of 2008-20
• Strategy 2020 reaffirms both ADB's vision of an Asia
and Pacific free of poverty and its mission to help
developing member countries improve the living
conditions and quality of life of their people
• Strategy 2020 identifies drivers of change:
–
–
–
–
–
developing the private sector
encouraging good governance
supporting gender equity
helping developing countries gain knowledge
expanding partnerships with other development institutions,
the private sector, and with community-based organizations18
ADP: Policies and Strategies (contd.)
• By 2012, 80% of ADB lending will be in five core
operational areas:
– Infrastructure, including transport and communications,
energy, water supply and sanitation and urban
development
– Environment
– Regional cooperation and integration
– Finance sector development
– Education
o ADB will continue to operate in health,
agriculture, and disaster and emergency
assistance, but on a more selective basis.
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ADB’s Bangladesh country operations
business plan, 2011-2013
• Bangladesh joined ADB in 1973
• Cumulative lending amounts to about $12.1
billion for 212 loans, with $202.7 million for
technical assistance grants for 363 projects
• Bangladesh is one of the largest borrowers of
concessionary Asian Development Fund
resources.
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Bangladesh country operations
business plan, 2011-2013
• Bangladesh country operations business plan, 20112013, approved in July 2010, comprises 24 projects
totaling about $3.2 billion, including assistance for
– primary education
– energy and
– transport sector
• Technical assistance program for 2011-2013 consists
of 41 projects, with an annual allocation of about of
$7.9 million.
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Bangladesh ADB Country Strategy and
Program Strategic Focus
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Sustainable Economic Growth
Social Development
Good Governance
Disaster Mitigation
Capacity Building
Private Sector Development
Gender
Regional Cooperation
Environment
Improving Implementation
Harmonizing Assistance
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ADB Commitment and Disbursement
(billion US $)
Commitment
Disbursement
Pipeline on 1st July
2010
Project Aid
10.48
7.51
2.12
Commodity Aid
0.59
0.68
0.0
Total Aid
11.07
8.19
2.12
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ADB Commitment and Disbursement
(billion US $)
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Trend of ADB Commitment and Disbursement
(million US $)
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UNDP
• UNDP is the United Nations' global development
network, an organization advocating for change and
connecting countries to knowledge, experience and
resources to help people build a better life.
• World leaders have pledged to achieve
the Millennium Development Goals, including the
overarching goal of cutting poverty in half by 2015.
UNDP's network links and coordinates global and
national efforts to reach these Goals
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UNDP (contd.)
• UNDP focus areas:
– Democratic Governance
– Poverty Reduction
– Crisis Prevention and Recovery
– Environment and energy
– HIV/AIDS
– Capacity development , and
– Empowerment of women
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Human Development Report
• Annual Human Development Report,
commissioned by UNDP, focuses the global
debate on key development issues, providing
new measurement tools, innovative analysis
and often controversial policy proposals.
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UNDP Bangladesh
• UNDP embarked on its journey in Bangladesh
on 31 July 1972
• UNDP focus areas:
– governance,
– poverty reduction,
– environment,
– energy and climate change,
– disaster management, and
– achievement of Millennium Development Goals
(MDGs)
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UNDP Projects
• UNDP active projects are classified as:
– Democracy and Governance
– Local Governance
– Peace and Development
– Local Poverty Reduction
– Climate Change Mitigation and Energy
– Environment
– Climate Change Adaptation and Disaster
– MDGs and Pro-Poor Development
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UN Commitment and Disbursement
(billion US $)
Commitment
Disbursement
Pipeline on 1st July
2010
Project Aid
2.37
1.77
0.6
Commodity Aid
0.19
0.19
0.0
Food Aid
1.91
1.72
0.19
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UN Commitment and Disbursement
(billion US $)
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Trend of UN (excluding UNICEF) Commitment
and Disbursement (million US $)
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Multilateral Donors: a critique
• Multilateral Donor Agencies are created by the Victor Countries
of the Second World War to assist the newly decolonized
countries to bring them in the global market system.
• Multilateral donors are dominated by the few western powers
and thus carried away by the wishes of the big donors and are
used by the big donors to implement their global strategic
interest.
• Aid disbursement by the Multilateral donors could be slow due
to complex decision making procedure at the Headquarters.
• However, to some extant power structure of Multilateral donor
agencies are defused resulting some voice for the poor
recipient countries.
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Thanks !
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