Concern has been rising in recent years at the extent to which development disparities appear to be increasing. Whilst some countries have made sound socio-economic, progress others have stagnated or even regressed. This report from the United Nations Committee for Development Policy provides some insights into these worrying trends. Attention is focused upon patterns of aid dispersal with particular reference to the character of flows to those countries classified as ‘least-developed’. The report highlights ways in which the contemporary era of globalisation creates new opportunities for developing nations, and points out that enhanced human and social capabilities are crucial for accessing these opportunities. However, some countries are failing to achieve advances within their health and education systems. The report outlines the potential roles of different agencies, including overseas donors in facilitating improvements. In addition, recommendations are made for adjustments in the way that nations are categorised according to their socio-economic status.
The report makes a number of observations in relation to aid; capability development; and the utility of different development indicators:
- Aid to the least-developed group of countries has fallen sharply in the last decade. This has compounded the problems facing the least-developed African countries, which have been also been confronted by conflicts and AIDS. Factors contributing to the decline in aid include: the end of the Cold War; disinterest from ex-colonial powers; pressure on budgets; and donor disappointment with poor aid outcomes.
- Aid receipts have been unreliable, thus increasing the vulnerability of the poorest economies.
- African countries are urged to focus upon generating African development and aid partnerships.
- While there has been overall progress in health and education, all developing regions have not performed equally. In particular, sub-Saharan Africa lags behind in both areas. However, globalisation has increased the imperative for individuals to build learning capacities throughout their lifetime. Synergies between the health and education sectors must be achieved.
- It is proposed that Gross National Income (GNI), which had already been in use in the criteria for inclusion in the list of the least developed countries, should replace Gross Domestic Product (GDP) as a criterion for graduation from least-developed status.
- Secondary-school enrolment rates are now considered a more useful criterion than primary education.
The committee’s deliberations have produced a number of issues for donors to consider:
- The primary goal for aid should be to develop human and social capabilities that facilitate autonomous development. Improving governance should be a top priority in order to provide a stable policy environment. Participatory approaches should be prioritised over top-down technocratic ones.
- Aid effectiveness could be improved by focusing on low-income and post-conflict countries and by ensuring that recipients are involved in the design and management of aid programmes. Acute situations in many African countries require proportionately large resource transfers.
- Donor agencies need to support developing countries in upgrading their health and educational systems.
- If a country graduates from least-developed status, then its relationship with donor agencies may shift. It is important that appropriate support continues to be given, thus ensuring that a dynamic process of development is ongoing in such countries.
- The primary goal of aid and assistance and should be capacity-building in recipient countries, that is, the creation and development of human and social capabilities that would foster autonomous development, innovation and change.
