The Aid Management Systems in BRICS Countries

Abstract

The distribution of foreign aid since WWII has been mostly in the form of Official Development Assistance (ODA henceforth) from the developed countries to developing countries. However, since the beginning of the twenty-first century, especially the Global Financial Crisis in 2008 which led to the accelerated shift of economic growth engine from traditional advanced countries to emerging economies, the international development has entered a new stage and the change in the players in international development area. As shown in Fig. 4.1, the share of ODA by OECD-DAC countries, traditional advanced economies, have shrunk from 90% in 2000 to 77% in 2014 and rebounded to 83% in 2017, whereas non-DAC countries have been increasing their share from 2% to 8% during the same period and reached a peak of 14% in 2014. The role by multilateral agencies is stable around 10%. The increase in donor countries and total amount of aid have provided more funding and cooperation options to recipient countries but also further widened the division of international aid structure and intensified the competition among donor countries.