By Jan-Henrik Petermann
The finish of the chilly struggle has brought on many donors of professional improvement counsel (ODA) to essentially realign their international relief and alternate family. regardless of fresh growth in untying ODA and a couple of comparable efforts to augment the final potency of foreign cooperation with the poorest international locations, it continues to be unexplained why a few OECD states have liberalised their bilateral programmes to a substantial volume – while others have endured to take advantage of international relief as a way to advertise household exports. Jan-Henrik Petermann widens the scope of past macro-analyses of ‘system-driven’ reorientations in tying practices within the wake of 1989/90, inquiring into donors’ nationwide parameters of policy-making on the strategic nexus among exterior alternate and overseas improvement.
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Additional info for Between Export Promotion and Poverty Reduction: The Foreign Economic Policy of Untying Official Development Assistance
Furthermore, Hill (2003: 151) reminds us of the fact that the idea of conditionality is by no means a purely technocratic or politically neutral concept. Donors traditionally enjoy much more leverage than recipients when availing themselves of ‘this kind of friendly blackmail’. In this context, it is interesting to note that during the three ‘Development Decades’, the World Bank kept formulating policy prescriptions that were roughly analogous to the ones defined by the UN (Rode, 2001: 137138): Pleas for a growth-driven ‘big push’ in the 1960s were succeeded by the principle of ‘investment in the poor’ under World Bank President Robert McNamara in the 1970s.
28 During the three decades that followed, political scientists eventually carried out a series of statistical case studies in which donors’ bilateral aid flows were operationalised in frameworks of Foreign Policy Analysis (FPA) for the first time (McKinlay/Little, 1977-1979; Maizels/Nissanke, 1984; cf. 2). For them, the tying of aid was not yet an explicit issue. It took the scientific community some more years before scholars pointed out that quantitative features of aid such as the ‘degree of tying’ or the ‘size of the grant element’ deserved close attention, as these parameters influenced a ‘donor’s rate of return’ in the aid relationship (Schrade, 1997: 286).
2008: 63). Introduction 49 Selection and comparison of cases In the United States, the persistence of a strong strategic bias in political and economic relations with the less developed world after 1989/90 leads us to expect that much ODA is still tied. The Aid for Trade Act passed by Congress in 1990 contains an explicit prescription that an annual minimum of one billion US dollars be channelled into such programmes. Its major purpose is ‘to support developmentally sound capital projects of direct strategic relevance to US trade competitiveness’ (Preeg, 1993).