My second infographic in Pragati this week was on foreign aid going out of India:
What makes aid from India different from western aid is that India prefers not to include conditionality clauses such as democracy and good governance, respecting the partner country’s sovereignty. Staying consistent with the Gujral doctrine, the government of India likes to avoid terms like foreign aid or development assistance, both of which are common in the Organisation of Economic Co-operation and Development’s parlance. India prefers to refer to aid as development cooperation or development partnership, and this flows down to the ethos with which grants are given.
Few are asking questions of the effectiveness of Indian aid – both in achieving development goals in partner countries and in generating benefits for India. It remains largely unknown, beyond anecdotal evidence. As the Indian taxpayer starts paying more, the DPA like USAID in the United States and DfID in the United Kingdom will be expected to provide greater accountability. The creation of DPA also provides an opportunity for the MEA to work with India’s private for-profit and not-for-profit sectors that have amassed expertise in a range of developmental issues.
The Indian government’s increased commitment to foreign aid over the past two years is a welcome change, but one that may be hostage to fiscal crises and change of leadership. How well foreign aid can be used to extend Indian interests abroad will depend entirely on how well we choose to administer and deploy it out of India. [Full article: Infographic: Foreign aid going out of India, December 20, 2013.]
The data story is a part of my ongoing research on aid flows out of India, some of which should be out in January 2014.