Bilateral Aid Agencies in Poverty Reduction

1. Bilateral Aid Agencies in Poverty Reduction Dr. muhammad G. Sarwar Sarwar_mg@ yahoo.com Civil Service College, Dhaka 10 July 2011

2. Presentation Contents • Foreign Aid Flow in to Bangladesh: trend analysis • Dominant Players in Development Assistance in Bangladesh: the gang of four • Bilateral Donors • JICA • DFID / UK Aid • US AID • Pros and Cons of Bilateral Assistance

3. Periodic Flow of Foreign Aid 1972-2010 (in billion US$)

4. Periodic Flow of Foreign Aid 1972-2010 (in billion US$)

5. Types of Foreign Aid 1972 -2010 (in %)

6. Ten largest Donors in Bangladesh FY 1972-2010 (in million US$)

7. Ten Largest Donors in Bangladesh

8. Ten Largest Bilateral Donors • JICA (Japan International Cooperation Agency) • DFID / UK AID • US AID • CIDA (Canadian International Development Agency) • GTZ / Germany • Netherlands • Saudi Arabia • SIDA (Swedish International Development Agency) • NORAD (Norwegian Agency for Development) • DANIDA (Denmark International Development Agency)

9. JICA: vision Inclusive and Dynamic Development • ‘Inclusive development’ refers to development that encourages all people to recognize the development issues they themselves face, participate in addressing them, and enjoy the fruits of such endeavors. • ‘Dynamic development’ refers to the creation of self-reinforcing virtuous cycles of mid to long-term economic growth and poverty reduction in a constantly changing environment where a variety of issues arise simultaneously and get entangled each other.

10. JICA: mission • Mission 1: Addressing the global agenda • Mission 2: Reducing poverty through equitable growth • Mission 3: Improving governance • Mission 4: Achieving human security

11. JICA: strategy • Strategy 1: Integrated assistance (three modalities of assistance—technical cooperation, ODA loans, and grant aid to offer comprehensive support) • Strategy 2: Seamless assistance (provide assistance in ways that best match the level of development in each recipient nation, taking a long-term perspective and offering seamless assistance to ensure sustainable development into the future) • Strategy 3: Promoting development partnerships (promote public-private partnerships, pooling the experience, technologies, and resources of local governments, universities, nongovernmental organizations, and other actors) • Strategy 4: Enhancing research and knowledge-sharing (building broad networks of academics from Japan and elsewhere around the world to create new knowledge value in the field of international development assistance)

12. JICA: Activity Guiding Principles 1. Achieving synergies of the merger 2. Tackling complex, difficult issues flexibly with the field-based approach 3. Fostering expertise for providing professional solutions 4. Efficient and transparent operations

13. Jica in Bangladesh: history • 1973: Beginning of Japanese Technical Assistance to Bangladesh by dispatching Japan Overseas Cooperation Volunteers (JOCVs) • 1974: The first ODA Loan to Bangladesh; Establishment of JICA Bangladesh Office • 1988: Establishment of OECF (antecedent of JBIC) Representative Office in Dhaka • 1995: Exceeding 500 billion yen as total commitment of ODA Loans to Bangladesh • 2003: Exceeding 1,000 Experts dispatched from Japan; Debt Cancellation (1,58.90 million yen) • 2006: Exceeding 5,000 Participants joining trainings in Japan • 2008: Merger of JICA and JBIC • 2009: Exceeding 1,000 JOCVs dispatched from Japan; 1,190 billion Japanese Yen as a total amount of Japanese ODA

14. JICA Activities in Bangladesh • Social Development with Human Security • Disaster Management • Water and Sanitation • Health • Education • Economic Growth • Transportation • Power and Energy • Agriculture/Rural Development • Private Sector Development • Governance

15. JICA Commitment and Disbursement (billion US $)

16. JICA Commitment and Disbursement (billion US $)

17. Trend of JICA Commitment and Disbursement (million US $)

18. Selected JICA Projects • Number of Total On-going Projects: 52 • JICA on-going Projects on Transportation: • Dhaka Chittagong Railway Development Project (2008 - 2015) • Eastern Bangladesh Bridge Improvement Project (2009 - 2012) • Chittagong Ring Road Development Project (2010 - 2013) • Bangladesh Digital Mapping Assistance Project (BDMAP) (2009 - 2011) • The Project for the Provision of Portable Steel Bridges on Upazila and Union Roads (2005 - ) • The Project for Improvement of Steel Bridges for Roads in Rural Areas (2001 - ) • Dhaka Urban Transport Network Development Study (2009 - 2011)

19. DFID / UK AID • Bangladesh is branded as a country faces challenges of: • large and increasingly urban population • of natural disasters and climate change • one of the poorest states in the world • most fragile – both physically and politically

20. UK AID Top Priorities • Encouraging private sector investment • Ensuring the government is capable of financing and delivering social services • Getting more children into better schools • Improving family planning and reducing maternal deaths

21. UK AID Commitment and Disbursement (billion US $)

22. UK AID Commitment and Disbursement (billion US $)

23. Trend of UK AID Commitment and Disbursement (million US $)

24. UK AID in 2009-10 Total UK bilateral aid received (09/10): £148.8 million Current Project Portfolio: 54 • Aid by sector: • Economic Growth: 28% • Education: 25% • Governance: 17% • Health: 15% • Other social services: 11% • Other: 3% UK AID will spend an average of £250 million per year in Bangladesh until 2015.

25. Selected DFID Projects • Health, Nutrition and Population Sector Programme (HNPSP) • Primary Education Development Programme 2 (PEDP2) • BRAC Challenging the Frontiers of Poverty Reduction - Phase 2 • Climate Change Program - Jolobayoo-O-Jibon • Chars Livelihoods Program ii • Economic Empowerment of the Poorest • Urban Partnership for Poverty Reduction • English in Action • Regulatory and Investment Systems for Enterprise • Promoting Financial Services for Poverty Reduction in Bangladesh • Strengthening Public Expenditure Management • Sanitation, Hygiene, Education & Water Supply in Bangladesh

26. US AID Bangladesh • Branded Bangladesh as a country of: • most densely populated • poorest countries in the world • a moderate Muslim majority population of 156 million

27. US AID Programs • Investing In People: Health and Education • Humanitarian Assistance: Improving Disaster Response • Increasing Economic Growth • Governing Justly and Democratically • Peace and Security: Combating Human Trafficking

28. Examples of US AID Impact in Bangladesh • USAID has supported the construction of 507 cyclone shelters that accommodate 507,000 people. • USAID reaches out to 20,000 religious and community leaders every year to introduce them to development initiatives. • Approximately 20 million Bangladeshis receive basic health care services every year through USAID's health programs.

29. Where does USAID's Money Go? Top 10 Benefiting Countries for FY 2010 • Afghanistan • Pakistan • Haiti • Israel • West Bank/Gaza • Kenya • Sudan • Jordan • Ethiopia • Georgia

30. US AID Program Areas in Bangladesh for FY 2010 • Health • Education • Infrastructure • Agriculture • Good Governance • Soc-Econ Services & Protection for Vulnerable Populations • Financial Sector • Administration and Oversight • Conflict Mitigation and Reconciliation • Private Sector Competitiveness • Counter-Narcotics

31. US AID Program Areas in Bangladesh for FY 2010 (contd.) • Environment • Civil Society • Rule of Law and Human Rights • Political Competition and Consensus-Building • Economic Opportunity • Macroeconomic Foundation for Growth • Program Design and Learning • Trade and Investment • Disaster Readiness • Financial Sector Capacity • Stabilization Operations and Security Sector Reform • Counter-Terrorism

32. US AID Commitment and Disbursement (billion US $)

33. US AID Commitment and Disbursement(billion US $)

34. Trend of US AID Commitment and Disbursement (million US $)

35. Bilateral Donors: a critique • Bilateral donor agencies were created by the western imperial countries after the Second World War to keep their former colonies engaged with their economies • Bilateral donors are dominated by the few western post-colonial powers to exert their global strategic interest in post colonial world order. • Bilateral donors use their assistance to their former colonies to expand their business and political interest. • Bilateral donors helps to reduce poverty in the recipient countries to enhance global and regional peace and security which is essential for maintaining existing global order. • Aid disbursement by the bilateral donors could be faster then multilateral donors due to simpler decision making procedure.

36. Thanks !