Since Harry S. Truman's Four Points Speech in which he urged the developed countries of the world to assist the "underdeveloped", countries have been providing aid. For the greater part of the last 50-60 years, the majority of aid originated from the U.S. and Western Europe. For the most part, the relationship between the donor agencies and the recipient stems from the relatives that existed during colonialism.
This week's lecture and class discussion centered around the role of donor agencies in international aid and development politics as well as the changing dynamics of international aid.
Since the establishment of the EU, it has become one of the largest donor agencies and has also altered how development aid is granted. Instead of decisions being made solely on the established relationships between individual countries and the possible benefits that the individual donor country could/would receive, decisions are made in a more multi-lateral and neutral manner. In recent years, though emergence of new donor countries has been noted including China, India, and Brazil. One of the areas of discussion that we touched upon in class was whether or not the more 'regular' donor countries(OECD states) should be concerned by the emergence of these new donors. Overall I think the answer is yes and no. Yes because if the developing countries are able to receive assistance elsewhere that doesn't come with some of the conditionalities (gay marriage, democracy, liberal markets, privatization etc) that Western countries like to enforce, they are more likely to refuse to adhere to the West as their assistance would no longer be needed. This means that the power and control that Western states have would be severely weakened. These new 'emerging' donors are focused more on the economic growth of the countries that they provide aid to and how that economic growth can benefit their interests. On the other hand though, traditional donor countries should not be concerned as this allows them to free up some of their funds. If other countries are stepping in to assist developing nations, then traditional donors can dedicate more funds to projects/countries that are of extreme importance to their strategic interests.
In regards to these new emerging donors, quite a few students in the class were very surprised by the amount of money that India has provided to developing nations. India's internal development is very poor and it is not understandable as to why they are giving money to other countries. A huge majority of the class were of the opinion that India's level of domestic development does not impact the fact that overall their economy is still booming. The question though is not whether or not India has a growing economy, the question is WHY is India giving aid to other nations when they should be investing in their own country? Yes, there are poor people in other donor countries such as the US and UK but the extent of poverty in India compared to that in the US is extremely high. Obviously India, as well as all of the new emerging donor countries, are attempting to build a wider sphere of influence and garner power by providing aid. While that is fine, it is a bit senseless as to why India(and Brazil) are providing aid to others when they themselves are still recipients of development aid.
Overall, the structures of global politics and development aid are definitely shifting. Developing countries should utilize the emergence of these new donors to their advantage by aligning themselves with those states that are capable of providing them the assistance they need without the unfavorable strings attached.