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A Global Shift in Foreign Aid, Starting in India

Discussion in 'World Economy' started by santosh, Mar 25, 2014.

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  1. santosh

    santosh Major SENIOR MEMBER

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    A Global Shift in Foreign Aid, Starting in India
    November 15, 2012

    Britain’s decision to stop giving development aid to India by 2015 marks a turning point in the former colonial power’s relations with New Delhi, and is raising questions about the global future of foreign aid in a fast-changing economic world order.

    “Having visited India I have seen firsthand the tremendous progress being made,” the British development secretary, Justine Greening, said Nov. 9, while announcing the end of more than 50 years of aid to India. “India is successfully developing, and our own bilateral relationship has to keep up with 21st century India,” she said.

    Britain’s move may be just the first in a full-scale pullback of aid to faster-growing developing nations, some aid professionals believe.

    “There is a real concern that all the major donors are looking at excluding emerging economies from their aid programs,” Emma Seery, the head of development finance at Oxfam, said by telephone. “These countries have large pockets of poverty, and we are afraid that this trend will remove this extra lifeline from the poorest,” she said.

    For decades, the United Nations has urged developed countries to spend 0.7 percent of their national income on aid to poorer nations, a target that continues to be elusive. According to the most recent figures of the Development Assistance Committee, a consortium of the world’s main donors, the developed world gave nearly $120 billion in assistance to the developing world in 2009, or 0.32 percent.

    The United States, which doled out some $30 billion in 2010, leads the pack.

    But many traditional donors are now openly reconsidering the need for, and role of, foreign aid. The United States, for example, facing a budget crisis, has considered proposals to significantly trim the billions in foreign aid it gives. “The proposals have raised the spectre of deep cuts in food and medicine for Africa, in relief for disaster-affected places like Pakistan and Japan, in political and economic assistance for the new democracies of the Middle East, and even for the Peace Corps,” Steven Lee Myers wrote in The New York Timeslast year.

    U.S. aid to India, targeted toward clean energy, food security and health, has dropped 25 percent in recent years, from nearly $127 million in 2010 to a proposed $98.3 million in 2013. India’s emergence as a regional and global power, the 2012 annual letterfrom the U.S. Agency for International Development said, “creates an opportunity to evolve the traditional donor recipient model of development into a true partnership.”

    This threatened drought of Western aid comes as some emerging market countries, including India, have themselves become donors to more impoverished countries.

    Before a visit this week from President Hamid Karzai of Afghanistan, aimed at wooing investment, India approved development projects in Afghanistan to the tune of $100 million as part of India’s $2 billion aid package to the war-torn country. In 2010, the country extended a $1 billion line of credit to Bangladesh, the highest ever one-time assistance, and last year, it offered $5 billion in credit to African nations. With a broadening aid portfolio, New Delhi recently announced plans to set up its own aid agency.

    For India, once the world’s largest foreign aid recipient, with some $55 billion funneled to the country between 1951 and 1992, the change from recipient to donor comes as the country tries to redefine its role in the international community.

    For decades, as India made its haphazard transition from being a British colony to an economic powerhouse, it depended heavily on aid from prosperous nations and international institutions. In 1958, for instance, Britain offered India some ₤40 million in foreign aid, as India struggled to build a nation and implement its second five-year economic plan. British Treasury officials referred to the “long-term problems of Indian development” when announcing the package.

    Sixty years later, Britain’s decision to pull the plug on funding to India was met with little more than a shrug by India’s political class. “We don’t really need the aid,” P. Chidambaram, the finance minister, said last week. “We have accepted it in the past, but I think both countries have agreed that we can emphasize on trade rather than aid.”

    Part of the reason for such nonchalance, analysts say, is that British aid to India, which amounts to $450 million per year and is used primarily in health care and education, is small. Last year, the finance minister at the time, Pranab Mukherjee, reportedlydismissed the funds as “peanuts” compared to India’s own spending. (Mr. Mukherjee is now the president of India.)

    Indeed, in recent years, India has ramped up its spending on social welfare programs, including a large rural employment scheme and a food subsidy system, aimed at lifting its millions out of poverty.

    But perhaps more significant is the fact that India now sees – and projects – itself as a global power and a partner to developed nations like Britain, rejecting the traditional model of rich nations aiding poor ones. “Aid is past, trade is future,” Foreign Minister Salman Khurshid recently said.

    This ambition stems from the Indian economy, which, even with a recent slackening, continues to grow at a faster rate than other large economies. In 2007, the World Bank moved India to a “lower middle income” country from a “low income” one. But, activists point out, it continues to be a country of rampant poverty and vast inequities. Despite two decades of growth, over 400 million people in India live on less than $1.25 a day, and the country’s malnutrition figures are among the worst in the world. India has had some success with its welfare programs, but it spends only 0.9 percent of gross domestic product on health care, among the lowest in the world, and 3 percent on education.

    This dichotomy appears to be in tune with global trends in poverty. A 2010 study by economist Andy Sumner at the Institute of Development Studies titled “The New Bottom Billion” found that two decades ago, 93 percent of the world’s poorest lived in low-income countries. Now, nearly three-quarters of them, or one billion people, live in middle-income economies.

    Economists at the Asian Development Bank, too, speak of a “middle income trap,” where rapid growth in short periods of time is followed by economic stagnation. While India is growing fast, said Rana Hasan, ADB’s principal economist in India, “historical record tells us this is not the time to disengage.”

    In recent years, ADB, which focuses primarily on infrastructure projects in India, has moved its focus from large nationwide projects such as highways and power grids to development projects in “lagging” states, like Bihar, Chattisgarh and Assam.

    British aid in India, said Ms. Seery of Oxfam, has a “real and significant impact,” and its withdrawal could have significant negative repercussions for its poorest. It has played a major role, she said, in India’s successful drive to eliminate polio, and it continues to help children attend primary schools and to give women and children access to good health care. “The decision to unaid,” Ms. Seery said, “was too hasty from a development perspective.”

    Some Indian analysts argue that the decision has less to do with India’s development than Britain’s own political and economic compulsions. In recent years, Britain has become home to a strong anti-aid sentiment, with a section of the political class arguing that India, which has its own space program, no longer needs aid from Britain, itself in the throes of an economic slowdown.

    In a poll by The Guardian newspaper, which asked if Britain should stop granting aid to India “in response to its former colony’s ‘rapid growth and development progress’ over the past decade,” 89 percent responded in the affirmative.

    Others say Britain’s new approach stems from the absence of quid pro quo. Last year, India’s decision to select a French company over its British rival for a multi-billion dollar contract to supply fighter planes caused great furor in London, with several British politicians saying India ought to have favored the British company on account of the millions it receives in aid from Britain.

    “They believe that British aid must get a bang for its buck, which means it must spread British influence,” said Jayati Ghosh, a professor of economics at Jawaharlal National University in New Delhi. “The aid is just not doing that anymore.” :coffee:

    A Global Shift in Foreign Aid, Starting in India - NYTimes.com
     
  2. santosh

    santosh Major SENIOR MEMBER

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    India's Transition to Global Donor: Limitations and Prospects (ARI)
    India’s Transition to Global Donor: Limitations and Prospects (ARI) - Elcano

    Theme: India has increasingly sought to expand its activities as a donor, both to reposition itself as an emerging power and to use aid as an instrument for engaging with other developing countries. This ARI looks at the current state of India's donor programme as regards both its size and scope, identifies India's role within the multilateral aid scenario and evaluates the challenges and prospects for further growth.

    Abstract: India has expanded its aid programme over the past decade, emerging as a serious donor in certain countries. While the amounts remain small, India's emergence has focused attention on its possible motives.

    The term emerging donor has, over the past decade, become an accepted part of the development world's lexicon, providing further evidence of the rise of emerging economies. This does not mean that the donors themselves are new. What is new is an increased recognition globally that emerging donors are now a viable complement, and in some cases a substitute, to aid from traditional donors.

    The emergence of these donors is particularly evident now because it occurs at a time when the developed world faces fundamental questions about its own socio-economic model. The financial crisis has undermined confidence amongst OECD countries, put their aid commitments in doubt and given rise to questions about their social welfare and free market models. It is into this vacuum that India has willingly stepped in to offer its own philosophy of development and growth.

    Disbursements by emerging donors were estimated at €8.5 billion in 2006.[1] While small (aid by OECD donors in 2006 totalled 103.9 billion),[2] the competition that these donors insert into what was once an oligopoly of high-income OECD nations has caused much consternation in development circles: China's aid programme has prompted both awe and fear;[3] India's stirs a mix of confusion and frustration abroad and pride and criticism at home.

    India started its aid programme soon after independence, with the budget speech of 1958 referring to INR100 million in multi-year grants to Nepal and an INR200 million loan to Myanmar.[4] Since then, but particularly over the past decade, India's aid programme has evolved substantially, growing both in scale and ambition.

    This paper analyses the evolution of India's giving in recent years. However, rather than simply describing what India gives and to whom, it primarily looks at three related questions: (1) what are the main characteristics that distinguish India's aid?; (2) as India grows into a global donor, how is it likely to view multilateral engagement?; and (3) against the backdrop of almost certain growth in giving in the future, what are the challenges and options ahead?

    Analysis

    Defining India's Giving

    At the outset it is worth establishing what constitutes aid in the context of India's donor programme. Like most emerging donors, India's aid-related activities do not follow the traditional definition of the Development Assistance Committee (DAC). Rather, an alternative definition can be considered: spending that furthers India's standing as a donor. There are three parts to that spending, namely grants and preferential bilateral loans to governments, contributions to international organisations (IOs) and financial institutions (IFIs), and subsidies for preferential bilateral loans provided through the Export Import (EXIM) Bank of India.

    In 2010 India's aid-related budget allocations were INR36.66 billion[6] (US$785 million in current dollars), a compound annual growth rate (CAGR) of 6.9% from 2004 to 2010. In addition, the EXIM bank in 2008 approved loans and guarantees worth INR352.47 billion with US$3.75 billion in operative lines of credit (see Table 2 and Graph 1).

    These numbers, while big, cannot compare with the giving of China or any of the established donors (China is estimated to have donated US$616 million in 2007 to Africa alone).[7] Thus, India’s ability to use its aid well depend not on how much it gives, but rather on how it directs its aid and what else it offers.

    Towards this end the country’s multilateral budget has increased rapidly. In 2008 and 2009 India spent INR30,719.4 and INR67,630 million respectively (US$2.1 billion) towards increasing its IMF share quota (IMF investment accounted for 66% of the entire budget in 2009). India has also been an enthusiastic donor to the World Food Programme (WFP).

    Secondly, these deficiencies expose India to the entire risk of aid giving, in particular allegations of neo-colonialism (a criticism often directed at OECD donors) or of undermining human rights (a criticism directed at China). Any move to expand direct aid should thus be made with caution
    .


    Conclusions: There is no doubt that recent changes to India's aid programme mirror a more general re-think of India's role in the world. Responding to increasing ambitions the programme has evolved to be more global, economic and bilateral. India has sought to engage more closely with the multilateral system, while creating its own niche within the development universe by remaining distinct from other donors.

    China has often used aid to facilitate access to natural resources. India's approach, by contrast, is described by Kragelund[15] as being on a smaller scale, a bit tardier and not spurring the same dichotomous reactions. It can be argued that this has prevented India's giving from realising its full strategic potential. However, that smaller scale and tardiness have also prevented India from tripping up on its own good intentions in what is still an early period of its programme.

    The risk is that as India increases its giving it may try to achieve too many things political pre-eminence in its vicinity, economic links with East Africa and access to strategic resources (natural or military) in Burma or West Africa. As that happens, India will expose itself to the same criticisms levelled against China and against traditional donors a risk amplified by India's institutional limitations that hinder transparency and accountability. In short, India's ambitions will continue to outstrip available resources and capabilities.

    Those limited resources should therefore be used as much to gain direct leverage as to promote India's private and non-profit sectors in the developing world. Collaboration with other donors can happen, so long as it promotes those general principles. What is needed is a more conscious, transparent and cohesive approach to develop this strategy, rather than the current opportunistic one, because these sectors have always been India's strengths.

    Dweep Chanana
    Advisor to private and institutional philanthropists with a Swiss private bank

    India’s Transition to Global Donor: Limitations and Prospects (ARI) - Elcano
     
  3. santosh

    santosh Major SENIOR MEMBER

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    India doles out Rs 26bn aid grant to Bhutan
    17 March 2012

    At the 2012 budget presentation in the Indian parliament, the Indian finance minister, Pranab Mukherjee yesterday said Rs 2,638 crore or about Nu 26bn has been kept aside as aid for Bhutan. :coffee:

    Last year, the Indian government provided Nu 20bn in aid to Bhutan.

    Amidst an ongoing rupee crisis, this Nu 26bn which will come to the country as development aid is expected to ease rupee shortage in the country. The government is expecting the budget to be released by the Indian government during the month of April this year.

    Finance minister Lyonpo Wangdi Norbu during a press conference earlier said that he is expecting the money to be released after the Indian budget presentation is over.

    Business Bhutan also learnt that the finance secretary Lam Dorji and acting foreign minister Lyonpo Khandu Wangchuk at the sidelines of Mangdechhu hydropower project meeting were supposed to meet the Indian finance minister to discuss about the release of the budget and also initiate talks to increase the standby credit line from Rs 3bn to Rs 6bn.

    While the Royal Monetary Authority is desperately trying to rein in rupee shortage in the country by means of monetory tools, the government apart from using the fiscal tool is heavily depending on aid from India.

    So far, the Indian government has committed a total of Rs 34bn, of which Rs 7bn has already been allocated for small development programs.

    Earlier the finance minister explained that since the money committed was not been disbursed on time, the government incurred expenditure of Nu 1.5bn for the small development program which further fuelled rupee depletion.

    The Indian government will soon replace the amount. “If this money comes, we will be better off,â€￾ said Lyonpo Wangdi Norbu.

    The prime minister and the finance minister were not available for comments.

    An economist Business Bhutan talked to however asked, “For how long Bhutan will depend on aids from India which will only be a short term measure to deal with the current situation of rupee shortage?â€￾

    He said Bhutan needs to look beyond India in terms of trade and investment with countries like Thailand, Bangladesh and Nepal.

    The government is also expecting inflow of rupee once the grant and loans from India for hydropower projects like Sunkosh, Mangdechhu and four other joint ventures embarks. :india:

    Business Bhutan - Nations only Financial Newspaper
     
  4. santosh

    santosh Major SENIOR MEMBER

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    India to give Bangladesh $1bn line of credit

    NEW DELHI: Taking the current bonhomie with the Sheikh Hasina government to a new level, PM Manmohan Singh on Monday announced a $1 billion line of credit for Bangladesh, the highest one-time line of credit assistance to any country by India. :coffee:

    Authorities described the aid as an apt reciprocation to the cooperation received from Bangladesh in dealing with terrorism and insurgency since Sheikh Hasina came back to power.

    The credit will aid infrastructural development in that country, including building railway bridges, supply of locomotives and assistance in dredging.

    Sheikh Hasina assured that no anti-India activity would be allowed to be carried out from the country. Sources said security was one of the most important issues on which the two sides agreed to actively cooperate.

    During his meeting with Sheikh Hasina, Singh said her visit had opened a new chapter in India-Bangladesh ties leading to "complete unity of heart and mind".

    In another goodwill gesture, India said it would stop work on the Tipaimukh dam project which had caused resentment in Bangladesh.

    Bangladesh Prime Minister Sheikh Hasina was inundated by official meetings through the day but her family had other social obligations.

    The PM's son Sajeeb Wazed Joy and daughter Saima Wazed Hossain Putul, accompanied by their aunt Sheikh Rehana and her children, called on the Gandhi family to revive an old connection that had become rusty with disuse.

    Sheikha Hasina came bearing mouth-watering gifts — Bangladesh's famous hilsa fish from the Padma river, which they swear is tastier than the Indian hilsa from the Ganga.

    In return, Sheikh Hasina will probably be gifted a little bit of West Bengal when railway minister Mamata Banerjee gifts her a 'Dhonekhali' saree, a speciality of the state and a variety she personally prefers, along with some of Kolkata's 'notun gurer shondesh'.The credit will aid infrastructural development in that country, including building railway bridges, supply of locomotives and assistance in dredging.

    Sheikh Hasina assured that no anti-India activity would be allowed to be carried out from the country. Sources said security was one of the most important issues on which the two sides agreed to actively cooperate.

    During his meeting with Sheikh Hasina, Singh said her visit had opened a new chapter in India-Bangladesh ties leading to "complete unity of heart and mind".

    In another goodwill gesture, India said it would stop work on the Tipaimukh dam project which had caused resentment in Bangladesh.

    Bangladesh Prime Minister Sheikh Hasina was inundated by official meetings through the day but her family had other social obligations.

    The PM's son Sajeeb Wazed Joy and daughter Saima Wazed Hossain Putul, accompanied by their aunt Sheikh Rehana and her children, called on the Gandhi family to revive an old connection that had become rusty with disuse.

    Sheikha Hasina came bearing mouth-watering gifts — Bangladesh's famous hilsa fish from the Padma river, which they swear is tastier than the Indian hilsa from the Ganga.

    In return, Sheikh Hasina will probably be gifted a little bit of West Bengal when railway minister Mamata Banerjee gifts her a 'Dhonekhali' saree, a speciality of the state and a variety she personally prefers, along with some of Kolkata's 'notun gurer shondesh'.

    India to give Bangladesh $1bn line of credit - Times Of India
     
  5. santosh

    santosh Major SENIOR MEMBER

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    Amid slowdown, India ramps up aid for neighbours
    Mar 18, 2012

    NEW DELHI: A difficult economic situation notwithstanding, India will be stepping up its assistance programme to its neighbouring countries in the coming fiscal.

    The biggest chunk of India's assistance programme is reserved for Afghanistan, Myanmar and Bhutan that are provided for in the 12th five-year Plan. But under the non-plan head, Bhutan takes the largest chunk with a combined loan-grant amount of Rs 1,500 crore. Bhutan has traditionally been the largest recipient of Indian aid, with massive hydro-electric projects being covered in the Plan expenditure. :tup:

    Afghanistan and Myanmar are big recipients, both strategically vital for India's security and economic interests. India has invested heavily in infrastructure projects in Afghanistan, including roads, parliament buildings and capacity building for the Afghans in various fields. India also runs the biggest children's hospital in Kabul. :tup:

    However, recently, India won the Hajigak iron ore mines that will necessitate building several roads connecting the mines to border points. A new component of India's aid package to Afghanistan is in the security sector. As a result of the strategic partnership agreement with Afghanistan last year, India is committed to training and equipping Afghan national security forces. This will include training programmes, to be mainly held in India.

    New Delhi is building a multi-modal transport system in Myanmar that could also serve to improve trade with the country that India now regards as the gateway to south-east Asia. :cheers:

    Other countries that will continue to receive Indian aid this fiscal is Sri Lanka, where India has invested in rehabilitation and rebuilding programmes in the north, railway lines and oil terminals as well as building houses for the internally displaced persons from the Tamil regions. Bangladesh also takes a sizeable chunk of Rs 250 crore after the PM announced a $1-billion credit line for the country in 2010. :coffee:

    Bafflingly, the government spends a minuscule amount for "energy security" in the MEA, but it's so small that it's unclear what this would be used for. Equally strangely, Mongolia gets Rs 2 crore this year from India, but the reason for that remains unclear.

    Amid slowdown, India ramps up aid for neighbours - Times Of India
     
  6. santosh

    santosh Major SENIOR MEMBER

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    India’s foreign aid program catches up with its global ambitions

    Citing its newfound economic strength, India revealed plans to reorient its positioning in the aid community just over a decade ago.

    “A stage has come in our development where we should now, firstly, review our dependence on external donors. Second, extend support to the national efforts of other developing countries,” said then-Indian Finance Minister Jaswant Singh in February 2003. :india:

    Since then, India’s ambition of transitioning from aid recipient to donor hasn’t panned out completely. Despite its increasingly dismissive posture toward Western aid donors, the Indian government still receives billions of dollars in foreign aid money each year. In 2011, India’s official development assistance to gross national income ratio stood at 0.2 percent, on a par with Egypt and Angola and up from 0.1 percent in 2003.

    Yet even as India remains among the largest recipients of foreign aid, the country has come a long way toward bolstering its standing as an emerging donor. In its latest budget unveiled in February, the Indian government set aside nearly $1.3 billion for foreign assistance in 2013-14, a fourfold jump from 2003-04. Over the past four years, Indian foreign aid spending has grown annually by an average 32 percent. :coffee:

    [​IMG]

    Much like its BRICS peers, New Delhi is keen on enhancing its global reputation through its foreign aid program. Experts on Indian foreign assistance have told Devex that India is likely to continue ramping up aid spending despite fiscal pressures brought about by its recent economic slowdown.

    “The intensity, volume and scope of [Indian] aid giving has remained immune from the government’s austerity drives which have reduced the spending power of various ministries,” Shanthie Mariet D’Souza, a research fellow with the Institute of South Asian Studies at the National University of Singapore, pointed out.

    Some members of the parliament in New Delhi have been less confident of the Indian foreign aid program’s budgetary position. Just last month, a standing committee of India’s lower house of parliament warned that the Ministry of External Affairs’ budget was no longer commensurate with its foreign aid and diplomatic activities.

    Technical cooperation continues to account for the bulk of Indian foreign assistance. In 2012-13, Indian spending on technical cooperation activities reached $589 million, representing 58 percent of the country’s foreign aid budget. The Indian government also makes sizeable contributions to multilateral organizations, including the U.N. Development Program and the World Health Organization. :india:

    USAID-style aid agency delayed yet again

    In 2007, Indian Finance Minister P. Chidambaram announced the government’s intention to establish a full-fledged Indian aid agency. But despite repeated pronouncements from New Delhi in the years since, the agency that would have been modeled after the U.S. Agency for International Development has yet to materialize.

    New Delhi’s aid program is mostly under the purview of the Ministry of External Affairs, which taps specialists from within its ranks and across the Indian government to carry out its programming. India has also channeled its aid money through other ministries, however, including the Ministry of Finance and the Ministry of Defense. The proposed USAID-style aid agency would have consolidated the administration of Indian foreign aid activities under one roof.

    In January 2012, the Indian government launched a coordinating and monitoring body for Indian foreign assistance within the Ministry of External Affairs called the Development Partnership Administration. Dweep Chanana, an expert on Indian foreign aid who is currently a director with UBS’ philanthropic division, told Devex the DPA could eventually evolve into a full-fledged aid agency.

    Yet while the creation of the DPA is widely acknowledged as a positive step for the decentralized and fragmented Indian aid program, many observers caution the Indian foreign aid and diplomacy apparatus remains woefully understaffed.

    Thus far, the Ministry of External Affairs has assigned only 20 staff members to the DPA. Moreover, the ministry’s overstretched diplomatic corps of 900 foreign service officers — roughly equal to that of Singapore — is raising valid questions over India’s ability to engage effectively with its development partners overseas. New Delhi is increasingly looking to its diplomatic missions to appraise funding requests from other governments.

    “This is a general problem for India’s foreign service. There are not enough diplomats,” Chanana asserted.

    Focus close to home

    In line with its status as a regional power, India has been a leading aid donor to its smaller neighbors Bhutan and Nepal since the 1950s. The two countries have historically received the lion’s share of Indian foreign assistance.

    India’s economic considerations for its aid program are on display in Bhutan, where its assistance focuses on developing the hydropower sector. The Indian government openly acknowledges that it intends to buy back much of the electricity generated through its hydropower assistance to the country. In 2012-13, Bhutan claimed 36 percent ($213 million) of India’s technical cooperation spending.

    Meanwhile, small-scale development projects in Nepal’s health and education sectors have emerged as priority investments for Indian foreign aid. Nepal received 8 percent ($49 million) of India’s technical cooperation budget in 2012-13.

    And in a development that has been strongly encouraged by the United States, Afghanistan has rapidly moved up the Indian aid agenda since the fall of the Taliban regime in 2001. Now the second-largest recipient of Indian foreign aid after Bhutan, Afghanistan garnered 15 percent ($89 million) of Indian technical cooperation spending in 2012-13. A new parliament building in Kabul, a hydroelectric dam in Herat province as well as community-level development initiatives are among the projects backed by the Indian government.

    Polls suggest India’s aid program in Afghanistan has been generally well-received by Afghans — perhaps no surprise given the two countries’ long-standing cultural ties. As Afghanistan braces for reduced aid levels in light of the NATO drawdown, there are some signs demand for Indian development engagement is growing in the country.

    “When I visited Jalalabad, the TV station manager wanted more of India’s assistance in training of local journalists … In Kandahar, women at an Indian medical facility wanted more medical help,” D’Souza said to Devex as she recounted her recent field visits to Afghanistan.

    The Indian government emphasizes that its aid activities in Afghanistan and elsewhere are demand-driven, a claim which has been supported to some extent by Indian aid experts, including D’Souza.

    Expanding to Africa

    Yet even as much of India’s aid money remains close to home, India has also extended the reach of its assistance well beyond South Asia. In large part through its deputation of technical experts abroad, the Indian aid program now spans more than 60 countries in Asia, Africa and Latin America. :coffee:

    India has been particularly keen on expanding its aid engagement with Africa. In 2012-13, African countries received 7 percent ($43 million) of India’s technical cooperation budget, up from 4 percent in 2011-12. The emerging donor stresses its willingness to share lessons from its own development with Africa.

    “India will work with Africa to realize its vast potential … We do not have all the answers but we have some experience in nation building which we are happy to share with our African brothers and sisters,” Indian Prime Minister Manmohan Singh told African heads of state attending the second India-Africa Forum Summit in Addis Ababa in 2011.

    In Addis Ababa, Singh committed $700 million in assistance to establish educational institutions and training programs across Africa, including in Uganda, Ghana, Botswana and Burundi. The Indian prime minister also announced $5 billion in lines of credit — largely tied to the purchase of Indian goods and services — to African countries. The Indian government is expected to make further aid commitments for the continent at the third India-Africa Forum Summit in the summer of 2014. :coffee:

    The Indian aid program has already drawn upon its strengths in the ICT sector to create Africa’s largest tele-education and telemedicine initiative, the $125 million Pan-African e-Network. Kicked off in 2006, India’s flagship aid initiative in the continent now connects 47 African countries with leading schools and hospitals in India through satellite and fiber-optic links.

    Devex.com
    May 13, 2013


    http://www.respondanet.com/Asia/indias-foreign-aid-program-catches-up-with-its-global-ambitions.html
     
  7. santosh

    santosh Major SENIOR MEMBER

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    .
    here, in between 2009-10 to 2013-14, we find around 3 times jump in India's foreign assistance for other countries, to around $1.30billion+ by this financial year :coffee:
     
    Last edited: Mar 27, 2014
  8. santosh

    santosh Major SENIOR MEMBER

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    Poor Little Rich Country
    BY PATRICK FRENCH | JUNE 24, 2011

    How do you categorize India, a nation that is at once fantastically wealthy and desperately poor?

    [​IMG]

    In May, the Indian government announced that it was giving $5 billion in aid to African countries in the interest of helping them meet their development goals. "We do not have all the answers," Prime Minister Manmohan Singh said, "but we have some experience in nation-building, which we are happy to share."

    The British could be forgiven for being annoyed with Singh's largesse. Britain, after all, currently gives more than $450 million a year in aid to India, and has plans to continue doing so for at least the next few years. The British economy is bumping in and out of a recession, while India's gross domestic product is growing at more than 8 percent a year. This has put the British government in the rather bizarre position of having to sell bonds in order to donate money to Asia's second-fastest-growing economy, even as the latter is itself getting into the philanthropy business.

    The policy is unpopular with most of the British press, which argues that because India has a space program and some flamboyant billionaires, it does not need aid -- especially when Britain cannot really afford it. (When the Labour government was voted out at last year's general election, the departing Finance Minister Liam Byrne left a one-line note on his desk for his successor: "I'm afraid there is no money." It was a joke -- but it was also true.) Nevertheless, Britain still sees itself as a donor nation, with all the obligations and international prestige that entails. This comes in part from a sense of postcolonial guilt: Prime Minister David Cameron spoke recently of a "sense of duty to help others" and the "strong moral case" for giving aid.

    The situation suggests just how dramatically the economic rise of Asia has undone centuries of experience, and the expectation that the West will retain the hegemony it has had for the past 400 years. It is increasingly difficult to classify whether a nation is rich or poor, and terms such as "the Global South" and "the Third World" have to be heavily qualified to take into account the fact that large sections of the population in countries like China, Brazil, and India now have a purchasing power matching that of people in "the West."

    In 1951, the American diplomat Bill Bullitt described the condition of India in Life magazine: "An immense country containing 357 million people," he wrote, "with enormous natural resources and superb fighting men, India can neither feed herself nor defend herself against serious attacks. An inhabitant of India lives, on average, 27 years. His annual income is about $50. About 90 out of 100 Indians cannot read or write. They exist in squalor and fear of famine." Today, it would be hard to make such an absolute statement about India. Poverty certainly remains a chronic problem, but it exists alongside pockets of substantial wealth. An Indian's life expectancy at birth now stands at 67 years, and continues to rise. It is necessary perhaps to think in a different way, and to see that a country like India, like Schrödinger's cat, exists in at least two forms simultaneously: rich and poor.

    The most important change of the last two decades, since the beginning of economic liberalization, has been the transformation of middle-class Indian aspiration. Although the stagnant days of the controlled economy and the "Permit Raj" -- when important decisions depended on a bureaucrat's authorization -- had their own stability, they also stifled opportunity and individual talent. Members of the professional middle class frequently preferred to seek their fortune in more meritocratic societies abroad.

    The modern Indian middle class has a new chance to shape its own destiny in a way that was not previously possible. You can move to your own house using a home loan and live outside the joint family; you can buy a car that is not an Ambassador or a Fiat; you can travel abroad and see how people in other countries live; you can watch your politicians accept bribes or dance with prostitutes on television in local media sting operations while surfing your way to Desperate Housewives or Kaun Banega Crorepati, an Indian adaptation of Who Wants to Be a Millionaire? Businesspeople who have succeeded on their own merits overseas, such as PepsiCo CEO Indra Nooyi, are presented as national heroes.

    Poor Little Rich Country - By Patrick French | Foreign Policy
     
  9. santosh

    santosh Major SENIOR MEMBER

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    India to build Afghanistan’s parliament complex

    New Delhi, Nov 6 (IANS) The cabinet Thursday okayed construction of Afghanistan’s parliament building and the Indian chancery complex in Kabul.The government approved these projects at a revised cost of Rs.950 crore (Rs.9.5 billion/approximately $200 million). :coffee:

    “The construction of the parliament building will be a visible symbol of India’s contribution for strengthening and rebuilding democracy in Afghanistan,” Prithviraj Chavan, minister of state in the Prime Minister’s Office (PMO), told reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

    “The construction of the chancery complex will provide a secure and functional base for our diplomatic functions in Kabul,” he said.

    The Indian mission in Kabul was bombed July 7, killing 54 people including two diplomats and two security personnel.

    India has placed $1.2 billion for reconstruction activities in Afghanistan.

    India to build Afghanistan’s parliament complex - Thaindian News
     
    Last edited: Mar 29, 2014
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  10. santosh

    santosh Major SENIOR MEMBER

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    Scholarships for African Students in India 2009

    The Government of India, through the Indian Council for Cultural Relations (ICCR), New Delhi, is offering the following scholarships for meritorious South African nationals for the year 2009 – 2010 for studies in India:

    1 (a) Scholarships under the General Cultural 19 Scholarship Scheme (GCSS).
    (b) African Scholarship Scheme. 25
    (c) Indian Scholarship Scheme to mark 01 ‘Africa Day’ in memory of the Late Dr. Amilcar Cabral.
    (d) Commonwealth Scholarship 01
    (e) Indian Scholarship Scheme in memory 01
    of Yusuf Dadoo and Monty Naicker. _____

    Total 47

    2. Detailed information regarding the scholarships and the application forms can be collected from the:

    Indian Cultural Centre, Consulate General of India, Johannesburg 1 Eton Road, Cnr. Jan Smuts Avenue, Parktown, 2193 Tel: 011-482 8484 Fax: 011-482 8492/ 482 4648

    or on our website: www.indiainsouthafrica.com

    3. The completed application form along with supporting documents must reach the above mentioned address by no later than Wednesday, 4 February 2009.

    4. The Consulate General of India in Johannesburg will process applications from the provinces of Gauteng. Mpumalanga, Limpopo Province, North West Province and the Northern Cape.

    Scholarships for African Students in India 2009 : 2013 2014 Scholarships & Financial Aid for Undergraduate, Masters, PhD Postdoctoral Students
     
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  11. santosh

    santosh Major SENIOR MEMBER

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    India to Provide 600 University Scholarships to Afghans

    India will offer 600 scholarships to Afghan students over the next five years in the fields of agriculture, civil service and forestry, the UN Development Programme (UNDP) said Sunday. :coffee:

    An agreement between Afghanistan's Ministry of Agriculture, Irrigation and Livestock and India's government will see the 600 scholarships granted to Afghans undertaking Bachelors, Masters and Ph.D. courses in Indian Universities.

    The scholarships are supported by the UNDP under its assistance to Afghanistan in the National Institution Building Project (NIBP), according to a statement on the UNDP website.

    In other news, the NIBP is helping Afghanistan's Ministry of Labor and Social Affairs, Martyrs and Disabled the put together a national policy on child labour, the statement added.

    According to the UNDP website, the main focus of the NIBP is to build the professional capacity of leading Afghan government ministries and agencies at both the national and sub-national level.

    An NIBP board meeting to be held in Kabul on Monday is expected to be attended by senior government officials and representatives from the embassies of India, Japan, Denmark, Sweden, Poland, Kazakhstan, Italy and Australia.

    India to Provide 600 University Scholarships to Afghans
     
  12. santosh

    santosh Major SENIOR MEMBER

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    India gives $5-billion aid to Africa :india:

    India loosened its pursestring to woo Africa on Tuesday with Prime Minister Manmohan Singh announcing a multi-billion dollar in aid while inaugurating the second India-Africa Forum Summit in the capital of Ethiopia. :ranger:

    Amid thunderous applause from the leaders and representatives of 15 African countries at the African Union headquarters in Addis Ababa, Singh announced a line of credit worth $5 billion "to help achieve the development goals of Africa". "There is a new economic growth story emerging from Africa. Africa possesses all the prerequisites to become a major growth pole of the worldâ€Â¦ India will work with Africa to realise its vast potentialâ€Â¦ It is in this spirit that I wish to outline some initiatives for the consideration of our African partners," Singh said on the eve of Africa Day.

    The $5.4 billion aid offered at the first Summit in Delhi in 2008 focused on regional integration through infrastructure development. Singh said, "I believe we have reason to be satisfied with what we have achieved since 2008. But our people expect much more and we have to work hard to deliver on these expectations. :coffee:

    He also offered an additional $700 million to establish new institutions and training programmes in consultation with the African Union and its institutions. There was also support for the development of a new Ethiopia-Djibouti Railway line to the tune of $300 million. :india:

    Unlike China capacity building has been India's focus in Africa over decades. It may be recalled that half of the Cabinet in an erstwhile Ethiopian government had studied or were trained in India. The area of capacity building has been New Delhi's strength and Singh once again did not disappoint his African counterparts.

    He announced creation of several new institutions at the Pan African level across various sectors - food, textile, weather forecasting, life and earth sciences and agriculture and rural development. :truestory:

    African students are a common sight in Indian cities be it Bangalore, Pune, Mumbai, Delhi or Kolkata. To encourage them further government announced that an India-Africa virtual university will be set up to meet the demands among Africans for higher studies in Indian institutions. :thumb:

    Towards this end 10,000 new scholarships will be offered under the proposed university.

    The PM also announced an increase by 900 training slots for the Africans under the Indian Technical and Economic Cooperation (ITEC). Therefore a total of 2500 training positions under ITEC will be offered for the next three years to the Africans and total scholarships offered during the same period will amount to 22,000. :truestory:

    At the bilateral level, it was also proposed to establish institutes for English language training, information technology, entrepreneurship development and vocational training across African countries. And as part of new initiatives in the social and economic sectors India will also establish rural technology parks, food testing laboratories, food processing business incubation centres and centres on geo- informatics applications and rural development. :ranger:

    In order to bring together business leaders from both sides and deepen trade ties, an India- Africa business council will be set up. :tup:

    A strong votary of peace building in Africa for decades that would lead to prosperity, India made yet another key announcement.

    Singh said, "I am happy to announce that India will contribute $2 million for the African Union Mission in Somalia." Stability in the Horn of Africa, as Somalia is known, is also key in addressing the menace of piracy, of which India has been a victim.
    Air connectivity has been a bottleneck between Indian cities and African nations.

    This has not helped in increasing peopleto- people contacts. Acknowledging this, PM said, "One of the biggest gaps in our interaction is that of insufficient air connectivityâ€Â¦ To begin with, India would be happy to increase the access of African airlines to Indian cities in a significant manner over the next three years."

    India on its part sought Africa's support for its bid for a permanent seat in the UN Security Council.

    "The current international economic and political situation is far from favourable, particularly for developing countries... The world faces new challenges in assuring food and energy security. Global institutions of governance are outmoded and under stress," Singh said.

    African nations had overwhelmingly voted for India in the election for non permanent seat at the UN. The continent also hopes to get two slots in the expanded Security Council. :tup: :india:

    India gives $5-billion aid to Africa : Rest of the World, News - India Today
     
  13. santosh

    santosh Major SENIOR MEMBER

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    duplicate post
     
  14. santosh

    santosh Major SENIOR MEMBER

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    here we find, Foreign Aid by India jumped 3 times to $1.3 billion during just last 4 years :coffee:

    .
     
    Last edited: Apr 5, 2014
  15. forjeet

    forjeet Lieutenant FULL MEMBER

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    Live with less than $2.00 a day 68.7% (841 million)
    Live with less than $1.25 a day 32.7% (400 million).
    ...........WB Report
    I didn't understand what our POLITICIANS/BABU/ELITE is SMOKING
    So comedown to ground.............. India giving Aid to poor countries :lol::lol:
     
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