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A id and MICs: Some common assertions and some clues to the future of aid

A id and MICs: Some common assertions and some clues to the future of aid. Jonathan Glennie. BOND, 8 May 2013. Common assertion #1. MICs no longer need aid. MICsleading. Arbitrary and stingy cut-off points.

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A id and MICs: Some common assertions and some clues to the future of aid

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  1. Aid and MICs: Some common assertions and some clues to the future of aid Jonathan Glennie BOND, 8 May 2013

  2. Common assertion #1 MICs no longer need aid MICsleading

  3. Arbitrary and stingy cut-off points “Is it not time for these arcane income thresholds for ‘graduating’ from ‘low-income’ status to be laid to rest?” Martin Ravallion, Director, Development Research Group, The World Bank

  4. An expanding set of objectives (Glennie 2012a) “Development only really begins when extreme poverty is eradicated.” Adolf Kloke-Lesch, former managing director at GIZ, Germany

  5. Common assertion #2 LICMICHIC progress tends to be linear MICsleading

  6. Movements between income categories

  7. $110bn $130bn $172bn

  8. Common assertion #3 Most poor people live in MICs MICsleading

  9. The Sumner numbers depend on only 5 countries (Glennie, 2011)

  10. Common assertion #4 Aid has “done its job” in MICs MICsleading

  11. The vast majority of poor people live in Low Aid Countries (Glennie, 2012b)

  12. 10 most poor-populous countries (Glennie, 2012b)

  13. Aid to MICs is likely to be increasingly effective (VFM) (Glennie, 2011) Effectiveness

  14. Common assertion #5 Aid from MICs differs fundamentally from DAC aid MICsleading

  15. Regional categories of donor make somewhat more sense

  16. 5 principles for all development finance (Glennie and Rogerson, 2011) • Accountability to citizens • Fulfilment of commitments • Complementarity • Mutual learning • Agreed human rights and environmental standards

  17. Recap • MICs still need aid and they can use it effectively • They also want to supply aid (for political as well as charitable reasons) • Global goals are expanding (planetary resource limits)

  18. The 2 major trends of this global era • Shifting geopolitical balance • Planetary resource limits ALSO the return of the public sector...  South-south cooperation  SD finance  Climate finance

  19. A global public sector

  20. People accept public spending at the national level

  21. Mutual benefit, mutual cost

  22. Common assertion #6 The aim of aid is to make itself unnecessary MICsleading

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