Bilateral Aid Agencies in Poverty
Reduction
Dr. muhammad G. Sarwar
Sarwar_mg@ yahoo.com
Civil Service College, Dhaka
10 July 2011
1
Presentation Contents
• Foreign Aid Flow in to Bangladesh: trend
analysis
• Dominant Players in Development Assistance
in Bangladesh: the gang of four
• Bilateral Donors
– JICA
– DFID / UK Aid
– US AID
– Pros and Cons of Bilateral Assistance
2
Periodic Flow of Foreign Aid 1972-2010
(in billion US$)
FY
Food Aid
Commodity
Aid
Project Aid
Total Aid
Average
Yearly Aid
1971-1980
2.090
2.768
1.749
6.607
660
1981-1990
2.346
4.435
7.340
14.121
1.412
1991-2000
1.537
3.169
10.911
15.617
1.562
2001-2010
613
536
15.104
16.253
1.625
Total
6.586
10.908
35.104
52.598
1.315
% share
12
21
67
100
3
Periodic Flow of Foreign Aid 1972-2010
(in billion US$)
4
Types of Foreign Aid 1972 -2010
(in %)
5
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
6
Ten Largest Donors in Bangladesh
7
Ten Largest Bilateral Donors
•
•
•
•
•
•
•
•
•
•
JICA (Japan International Cooperation Agency)
DFID / UK AID
US AID
CIDA (Canadian International Development Agency)
GTZ / Germany
Netherlands
Saudi Arabia
SIDA (Swedish International Development Agency)
NORAD (Norwegian Agency for Development)
DANIDA (Denmark International Development Agency)
8
JICA: vision
Inclusive and Dynamic Development
• ‘Inclusive development’ refers to development that
encourages all people to recognize the development
issues they themselves face, participate in addressing
them, and enjoy the fruits of such endeavors.
• ‘Dynamic development’ refers to the creation of selfreinforcing virtuous cycles of mid to long-term
economic growth and poverty reduction in a
constantly changing environment where a variety of
issues arise simultaneously and get entangled each
other.
9
JICA: mission
• Mission 1: Addressing the global agenda
• Mission 2: Reducing poverty through
equitable growth
• Mission 3: Improving governance
• Mission 4: Achieving human security
10
JICA: strategy
• Strategy 1: Integrated assistance (three modalities of
assistance—technical cooperation, ODA loans, and grant aid to
offer comprehensive support)
• Strategy 2: Seamless assistance (provide assistance in ways that
best match the level of development in each recipient nation,
taking a long-term perspective and offering seamless assistance
to ensure sustainable development into the future)
• Strategy 3: Promoting development partnerships (promote
public-private partnerships, pooling the experience,
technologies, and resources of local governments, universities,
nongovernmental organizations, and other actors)
• Strategy 4: Enhancing research and knowledge-sharing (building
broad networks of academics from Japan and elsewhere around
the world to create new knowledge value in the field of
international development assistance)
11
JICA: Activity Guiding Principles
1. Achieving synergies of the merger
2. Tackling complex, difficult issues flexibly
with the field-based approach
3. Fostering expertise for providing
professional solutions
4. Efficient and transparent operations
12
Jica in Bangladesh: history
• 1973: Beginning of Japanese Technical Assistance to Bangladesh
by dispatching Japan Overseas Cooperation Volunteers (JOCVs)
• 1974: The first ODA Loan to Bangladesh; Establishment of JICA
Bangladesh Office
• 1988: Establishment of OECF (antecedent of JBIC) Representative
Office in Dhaka
• 1995: Exceeding 500 billion yen as total commitment of ODA
Loans to Bangladesh
• 2003: Exceeding 1,000 Experts dispatched from Japan; Debt
Cancellation (1,58.90 million yen)
• 2006: Exceeding 5,000 Participants joining trainings in Japan
• 2008: Merger of JICA and JBIC
• 2009: Exceeding 1,000 JOCVs dispatched from Japan; 1,190
billion Japanese Yen as a total amount of Japanese ODA
13
JICA Activities in Bangladesh
• Social Development with Human Security
–
–
–
–
Disaster Management
Water and Sanitation
Health
Education
• Economic Growth
–
–
–
–
Transportation
Power and Energy
Agriculture/Rural Development
Private Sector Development
• Governance
14
JICA Commitment and Disbursement
(billion US $)
Commitment
Disbursement
Pipeline on 1st July
2010
Project Aid
4.61
3.03
1.56
Commodity Aid
3.59
3.64
0.0
Food Aid
0.41
0.41
0.0
15
JICA Commitment and Disbursement
(billion US $)
16
Trend of JICA Commitment and Disbursement
(million US $)
17
Selected JICA Projects
• Number of Total On-going Projects: 52
• JICA on-going Projects on Transportation:
–
–
–
–
–
Dhaka Chittagong Railway Development Project (2008 - 2015)
Eastern Bangladesh Bridge Improvement Project (2009 - 2012)
Chittagong Ring Road Development Project (2010 - 2013)
Bangladesh Digital Mapping Assistance Project (BDMAP) (2009 - 2011)
The Project for the Provision of Portable Steel Bridges on Upazila and
Union Roads (2005 - )
– The Project for Improvement of Steel Bridges for Roads in Rural Areas
(2001 - )
– Dhaka Urban Transport Network Development Study (2009 - 2011)
18
DFID / UK AID
• Bangladesh is branded as a country faces
challenges of:
– large and increasingly urban population
– of natural disasters and climate change
– one of the poorest states in the world
– most fragile – both physically and politically
19
UK AID Top Priorities
• Encouraging private sector investment
• Ensuring the government is capable of
financing and delivering social services
• Getting more children into better schools
• Improving family planning and reducing
maternal deaths
20
UK AID Commitment and Disbursement
(billion US $)
Commitment
Disbursement
Pipeline on 1st July
2010
Project Aid
2.01
1.56
0.57
Commodity Aid
0.45
0.44
0.0
Food Aid
0.05
0.05
0.0
21
UK AID Commitment and Disbursement
(billion US $)
22
Trend of UK AID Commitment and Disbursement
(million US $)
23
UK AID in 2009-10
Total UK bilateral aid received (09/10): £148.8 million
Current Project Portfolio: 54
• Aid by sector:
•
•
•
•
•
•
Economic Growth: 28%
Education: 25%
Governance: 17%
Health: 15%
Other social services: 11%
Other: 3%
UK AID will spend an average of £250 million per
year in Bangladesh until 2015.
24
Selected DFID Projects
•
•
•
•
•
•
•
•
•
•
Health, Nutrition and Population Sector Programme (HNPSP)
Primary Education Development Programme 2 (PEDP2)
BRAC Challenging the Frontiers of Poverty Reduction - Phase 2
Climate Change Program - Jolobayoo-O-Jibon
Chars Livelihoods Program ii
Economic Empowerment of the Poorest
Urban Partnership for Poverty Reduction
English in Action
Regulatory and Investment Systems for Enterprise
Promoting Financial Services for Poverty Reduction in
Bangladesh
• Strengthening Public Expenditure Management
• Sanitation, Hygiene, Education & Water Supply in Bangladesh25
US AID Bangladesh
• Branded Bangladesh as a country of:
– most densely populated
– poorest countries in the world
– a moderate Muslim majority population of 156
million
26
US AID Programs
• Investing In People: Health and Education
• Humanitarian Assistance: Improving Disaster
Response
• Increasing Economic Growth
• Governing Justly and Democratically
• Peace and Security: Combating Human
Trafficking
27
Examples of US AID Impact in Bangladesh
• USAID has supported the construction of 507
cyclone shelters that accommodate 507,000
people.
• USAID reaches out to 20,000 religious and
community leaders every year to introduce
them to development initiatives.
• Approximately 20 million Bangladeshis receive
basic health care services every year through
USAID's health programs.
28
Where does USAID's Money Go?
Top 10 Benefiting Countries for FY 2010
•
•
•
•
•
•
•
•
•
•
Afghanistan
Pakistan
Haiti
Israel
West Bank/Gaza
Kenya
Sudan
Jordan
Ethiopia
Georgia
29
•
•
•
•
•
•
•
•
•
•
•
US AID Program Areas in Bangladesh for
FY 2010
Health
Education
Infrastructure
Agriculture
Good Governance
Soc-Econ Services & Protection for Vulnerable Populations
Financial Sector
Administration and Oversight
Conflict Mitigation and Reconciliation
Private Sector Competitiveness
Counter-Narcotics
30
US AID Program Areas in Bangladesh for FY
2010 (contd.)
•
•
•
•
•
•
•
•
•
•
•
•
Environment
Civil Society
Rule of Law and Human Rights
Political Competition and Consensus-Building
Economic Opportunity
Macroeconomic Foundation for Growth
Program Design and Learning
Trade and Investment
Disaster Readiness
Financial Sector Capacity
Stabilization Operations and Security Sector Reform
Counter-Terrorism
31
US AID Commitment and Disbursement
(billion US $)
Commitment
Disbursement
Pipeline on 1st July
2010
Project Aid
1.73
1.13
0.33
Commodity Aid
0.60
0.61
0.0
Food Aid
1.80
1.80
0.0
32
US AID Commitment and Disbursement
(billion US $)
33
Trend of US AID Commitment and Disbursement
(million US $)
34
Bilateral Donors: a critique
• Bilateral donor agencies were created by the western imperial
countries after the Second World War to keep their former
colonies engaged with their economies
• Bilateral donors are dominated by the few western postcolonial powers to exert their global strategic interest in post
colonial world order.
• Bilateral donors use their assistance to their former colonies to
expand their business and political interest.
• Bilateral donors helps to reduce poverty in the recipient
countries to enhance global and regional peace and security
which is essential for maintaining existing global order.
• Aid disbursement by the bilateral donors could be faster then
multilateral donors due to simpler decision making procedure.
35
Thanks !
36