Agric. Econ. - Czech, 2006, 52(5):209-224 | DOI: 10.17221/5018-AGRICECON

Development assistance

V. Jeníček, V. Krepl

¹ University of Economics, Prague, Czech Republic

² Czech University of Agriculture, Prague, Czech Republic

Development assistance achieved remarkable success in different periods. For example, Botswana and South Korea reached the great development in the 60s after very bad situation, Indonesia in the 70s, Bolivia and Ghana at the end of the 80s, Uganda and Vietnam in the 90s. In these countries development assistance played important role in economic transformation in formulation of the development of politics. The development assistance contributed educational programs and financially supported the development of public sector. The "Green Revolution" - by means of innovations in agriculture, investments and political changes - improved the live conditions of millions people thanks to the collaboration of many bilateral and multilateral donors. But there are some failures with the foreign aide. While the formed dictator of Zaire Mobutu Sese Seko became one of the richest people in the world (and invested his property in abroad), the development assistance did not stop for many years, Zaire (now the Democratic Republic of Congo) is only one example of the situation, where the permanent flows of assistance ignore or support the corruption and in suitable politics of governments. Tanzania received two milliards dollars for building the roads destiny the twenty years. But the roads were destroyed sooner, than the works could be finished because of insufficient maintenance. The study of World Bank brings the conclusions of the new conception of the development assistance: financial assistance works only in suitable political world; the lowering of poverty is possible only with working institutions - political and economic; effective assistance complete the private investments; receiving country is obliged to have public sector in function; the function of public sector is developing on the activity of civil society; patience and good ideas, not only money, can help to reforms in very unfavorable conditions.

Keywords: foreign development aid, developed market economies, less developed countries - recipients

Published: May 31, 2006  Show citation