Governance of Development Assistance: Issues and Challenges. (June 2017)

• Record Type: Journal Article
• Authors: Kaur, Navreet; Sitlhou, Lhoukhokai
• Is Part Of: Indian journal of public administration. Volume 63:Number 2(2017)
• Page Start: 252
• Page End: 264
• Publication Date: 2017-06
• Subjects: Multilateral agencies -- development aid -- transparency -- fund allocation -- disbursement; Public administration -- Periodicals; India -- Politics and government -- Periodicals; 351.54005
• DOI: 10.1177/0019556117699731
• Languages: English
• ISSNs: 0019-5561

Abstract

Good governance emphasises upon efficient and effective institutional mechanism, greater transparency, people's participation, citizen-centric services and accountability. These reforms are not only limited to national governance practices but also applicable to distribution, disbursement and effectiveness of development assistance. The objective of development assistance is to provide opportunities to needy, deprived and disadvantageous sections of the society. The available data on development assistance clearly demonstrate that rich countries, Development Assistance Countries (DACs) provide financial assistance to poor countries and it has reached US$100 billion in recent years. Non-DAC bilateral assistance (NDBA) is more than US$8 billion in Office of Disaster Assistance (ODA) and US$5 billion annually in country programmable aid (CPA). Private aid (PrA) from DAC members contribute between US$58 billion and 68 billion per year. Total aid flows to developing countries currently amount to around US$180 billion annually. Multilateral aid agencies (around 230) outnumber donors and recipients combined. But the harsh reality is high percentage of illiteracy, high child mortality, gender inequality, prevalence of corruption and exclusion of needy people from the development process. The examination of the process and procedures involved in development process revealed that there are many challenges in the process adopted for allocation, methodological limitations, evaluation limitation, lack of coordination among multiple agencies, political compulsions of donor and recipient countries, transparency, accountability and multidimensional global financial markets compulsions. Certain measures can make development more inclusive and sustainable. Collective efforts of all agencies are the need of the hour to achieve the targets of sustainable development. Coordination among multiple agencies, capacity building of target population and involvement of private agencies in the development process will pave the way for sustainable development.