Spot the Aid givers

In 1981 grants and loans from 19 Western countries belonging to the OECD* made up more than two-thirds of worldwide development assistance.

OPEC countries contributed large amounts of aid in terms of GNP per capita. Communist countries provided only slightly more aid than non-governmental agencies in the West.

*Organisation for Economic Cooperation and Development

Source.- CECO Development Cooperation 1982 Review

How much aid goes to the poorest countries?

Just over 50% of all official aid from the West goes to 66 low income countnes. But this amounts to only $7.6 per person, compared with $18.2 per person received by people of 69 middle income countries —who are already three times richer.

How much aid goes to the poorest people?

Reliable information about the impact of aid projects on the poorest people is difficult to obtain. A recent World Bank report, however-., gives a fairly realistic assessment of the experimental ‘poverty oriented projects supported bythe VVorld Bank since the mid-i 970s. Here are the reports main findings:

World Bank lending to poverty-oriented’ projects, mid 1970s-1981

Sector	% of World Bank lending	Benefits for poorest groups
Rural development	15.3	Few direct benefits for the landless,for tenants and for near-landlessfarmers.
Urban poverty projects	3.4	No benefits for the poorest 20% of the population.
Small-scale, non-farm enterprises	1.7	No information on distribution of benefits.
Water and sanitation	6.7	Only 30% of benefits go to the poorest 40% in urban areas only.
Education	1.6	Less benefit to the poor than to better-off families. (Children of poor families work full-time).
Population. health and nutrition.	0.3	Not yet fully evaluated.
TOTAL	29.0

Source: World Bank, Focus on Poverty. 1983

Official development assistance consists of grants and loans at concessional rates (low interest arid long term) to promote economic developrnent and welfare. Not included: military aid, batik loans at commercial rates and grants from non-government agenci es.

Bilateral aid is provided directly by a donor to a recipient country. About 70% of all official aid.

Multilateral aid is channelled via international organisations such as the UN agencies and the World Bank. About 30% of all official aid.

Tied aid means that goods and services must be procured in the donor country; untied aid may be used to ‘shop around’ for the best deal on the open market. About half of all official aid is tied.

Project aid is for clearly defined projects, e.g. roads, water supplies and health facilities. This form of aid is attractive to donors because they can exercise greater control over its use. About 65% of all official aid.

Programme aid is non-project development assistance, usually to help countries out of balance of payments difficulties, This form of aid is most attractive to recipient countries because of its flexibility. About 35% of all official aid.

Technical assistance involves the provision of development-oriented skills by experts, the supply of relevant equipmerit and the training of local technical personnel. About 25% of all bilateral aid.

Food aid consists of cereals and dairy products from food-surplus countries, sent niainly to Egypt, Bangladesh, Indonesia and India. 70% is sold locally and used to support government budgets; 20% is used as project aid; 10% is used for emergency aid. Amounts to 11% of total official aid.

Emergency assistance is aid to people (e.g. refugees) in countries suffering from natural disasters, wars or other major Lipheava Is. About 5% of official aid.