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Thursday, 04 March 2010

Giving with one hand, taking with the other

When it comes to aid relations there is a widespread perception, particularly in the South, that donors are giving with one hand whilst taking with the other. This perception is a consequence of donors frequently disbursing aid on the condition that purchases are made from companies based in their own countries. It is widely accepted that tying aid in this manner reduces cost-efficiency, effectiveness, and the overall developmental impact of Official Development Assistance (ODA). Thus, the commitment to untie aid has made its way to most international agreements on aid and aid effectiveness, in particular the 2001 DAC Recommendations on untying aid to the Least Developed Countries, but also the Millennium Development Goals, the Paris Declaration and the Accra Agenda for Action.

Source: Eurodad