Week #6: Aid and Development Goals

  1. For much of Africa being able to make strides towards reaching the development goals set before them will be with a combination of outside aid and assistance with and equally important change by the country itself. Whether this is through social welfare programs or reducing business restrictions, improving the job creation market. To understand where a country is and where it needs to improve makes the collection of information regarding strategic plans to be put in place and effectiveness of past plans and systems. The CAP or The Consolidated Appeals Process “is a program cycle for aid organizations to plan, coordinate, fund, implement, and monitor their response to disasters and emergencies, in consultation with governments.”(Humanitarian Info). Their main goal is to streamline relations with NGO’s, governments, UN and other international organizations, so when a new crisis hits or a new policy is to be implemented they results can be as problem free as possible. This organization can asses a countries situation giving recommendations of what organizations will most effectively tackle the challenges the country faces. Liberia in particular had CHAP in the country helping them address issues facing the struggling developing nation. “This Common Humanitarian Action Plan (CHAP) reflects these challenges and includes additional actions to minimize the gap between humanitarian action and development”(Unocha) that they will go in after years of civil destruction to bring them out of ruin as so many Liberians face unimaginable struggles. Having the CHAP come to Liberia allowed its NGO community to ensure a large breadth of geographical coverage being managed correctly.hqdefault
  2. GDP is an accurate way to judge the economic environment in a nation, good or bad the GDP is important tool to use when judging a country’s economy. Another effective tool when looking at a countries economic situation is looking at the GNI “Gross national income (GNI) is defined as the sum of value added by all producers who are residents in a nation, plus any product taxes (minus subsidies) not included in output, plus income received from abroad”(Investopedia). This gives a more complete picture than just GDP because you gain knowledge of revenue collected from abroad showing international interest when dealing with this countries economy. In Liberia the GNI is $410 in US dollars.Liberiamap
  3. When developed countries choose to only give a small amount of their national income towards aid and the further development of the nations in need slows significantly. When Oxfam says they would like to achieve the 0.7 ODA/GNI targets they really are stating, “The best known target in international aid proposes to raise official development assistance  (ODA) to 0.7% of donors’ national income.”(OECD). This means their goal is for every nation to donate at minimum 0.7% of their national income they realize even such a small percent, if every nation agreed, would have profound effects on the development of poor nations around the world. The sad truth is many nations do not give even close to this percent of their national income.corruption_hit
  4. Liberia collects 36% of its GNI by ODA aid distribution. So they are becoming increasingly dependent on this aid without really making advancements towards being off the aid cycle. Only about three countries achieve the .7% aid of national income while others including the US fall short. Even though the US gives the most in dollar amount the percentage is much less than the desired .7%.
  5. The US government is one of the most generous by pure dollar amount of any nation in the world. This is to be commended for the good it achieves around the world. The problem is the US pledges much larger amounts than it already is giving causing resentment in developing nations when the richest nation in the world is unwilling to fulfill its commitments. This loss in expected income can hamper effectiveness of policy implementation as the funds to do so are now lacking. The US gave over 30 billion in net ODA disbursements, with over 180 million going to Liberia. While the US has shown a willingness to spend big to help developing countries I think two things need to be addressed. First if the US makes pledges to donate a certain total of money then it should be followed also the US should work with countries it donates to and help them use the funds effectively to achieve goals the country thinks are most vital. This way the funds being spent would have the greatest impact on the most amounts of people.liberian gov spending and foreign aid
  6. The Policy Coherence for Development or PCD is “an approach and a tool for integrating the economic, social, environmental and governance dimensions of sustainable development at all stages of domestic and international policy making”(OECD). They are to help governments that receive millions of dollars the ways to prevent corruption and the escape of funds. While also helping development goals and uses of the money be turned into tangible results. This works with the MDGs because if the PCD can help make policy choices the most effective and efficient the result will be working towards the MDGs. The PCD helps nations choose the right math to achieve these goals with the funds they are receiving, otherwise policy would be incorrectly implemented or too slow to be effective.
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