By Alf Morten Jerve, Yasutami Shimomura, Annette Skovsted Hansen (eds.)
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Additional resources for Aid Relationships in Asia: Exploring Ownership in Japanese and Nordic Aid
Economic management 1. Macroeconomic management 2. Fiscal policy 3. Debt policy B. Structural policies 4. Trade 5. Financial sector 6. Business regulatory environment C. Policies for social inclusion/equity 7. Gender equality 8. Equity of public resource use 9. Building human resources 10. Social protection and labour 11. Policies and institutions for rnvironmental sustainability D. Public sector management and institutions 12. Property rights and rule-based governance 13. Quality of budgetary and financial management 14.
By the mid-1990s, there had emerged an uncomfortable, at least implicit if not explicit, recognition on the part of the donor community that SAP loans had failed to lay down the foundation for a sustainable path of economic development in many parts of the world. A critical reappraisal was required to explain this failure. With this reality, the debate on the role of foreign aid in economic development shifted, as Adam and O’Connell (1999) note, from the ‘capital shortage’ diagnosis of the 1960s and 1970s to the ‘policy failures’ diagnosis of the 1980s, and finally to the ‘institutional failures’ diagnosis of the 1990s.
This assumption is not only too restrictive for the model to be of general use as an analytical tool, but also not reflective of reality. Instead, aid relationships should be contextualised in much wider, complex international political and economic relations. It is true that some governments with politically narrowly-based regimes may well behave in a predatory manner towards domestic agents. However, this does not justify the assumption that all recipient governments are characterised by such attributes.