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INTRODUCTION

AID

Aid (also known as international aid, overseas aid, or foreign aid,especially in the United States) is a voluntary transfer ofresourcesfrom one country to another, given at least partly with the objectiveof benefiting the recipient country. It may have other functions aswell: it may be given as a signal ofdiplomatic approval, or tostrengthen a militaryally, to reward a government for behaviourdesired by the donor, to extend the donor's cultural influence, to

provide infrastructure needed by the donor for resource extractionfrom the recipient country, or to gain other kinds ofcommercialaccess. Humanitarianism and altruism are, nevertheless, significantmotivations for the giving of aid. In line with this train of thought,the capability approach promotes the development of giving aidwith an aim towards improving each individual's freedoms todevelop capabilities.

Aid may be given by individuals, private organizations, orgovernments. Standards delimiting exactly the kinds of transfers

that count as aid vary. For example, aid figures may or may notinclude transfers for military use: to cite one instance, the UnitedStates included military assistance in its aid figure until 1957 butno longer does. Another issue is whether to count remittances byexpatriate workers to family members in their home countries asaid. This constitutes a large but difficult to measure internationalflow of funds.

Even if the principles of a definition are set, it remains difficult to

determine the effective flow of aid because aid is fungible:receiving aid may free up funds in the recipient country for use innon-aid projects that could not have been undertaken had the aidnot been received. For example, receiving food aid may enable agovernment to divert funds from its own food-support budget to its

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military budget. In that case the net effect of the aid is militaryalthough the aid money might actually be spent on food.

Official organizations and those scholars who are primarily

concerned with government policy issues frequently include onlygovernment-sourced aid in their aid figures, omitting aid from

private sources. The most widely used measure of aid; "OfficialDevelopment Assistance" (ODA) is such a figure. It is compiled bythe Development Assistance Committee of the Organization forEconomic Co-operation and Development. The United Nations,the World Bank, and many scholars use the DAC's ODA figure astheir main aid figure because it is easily available and reasonably

consistently calculated over time and between countries. The DACconsists of 22 of the wealthiest Western industrialized countriesplus the E.U.; it is a forum in which they coordinate their aidpolicies.

H ISTORY OF AID

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Aid existed in ancient times. More recently, in the nineteenthcentury, some private aid flowed from the Western countries to therest of the world; missionary schools are an example. In thenineteenth and early twentieth centuries, aid from governments

was tiny compared to present levels, consisting mostly ofoccasional humanitarian crisis relief. Some transfers that wouldnow be counted as aid, however, came under the purview ofcolonial office budgets. It was at the end of World War Two, in thecontexts of European reconstruction, decolonization, and cold warrivalry for influence in the third world, that aid became the majoractivity that it is today.

Aid may be "given" in the form of financial grants or loans, or inthe form of materials, labor, or expertise. Aid is often pledged atone point in time, but disbursements (financial transfers).

HUMANITARIAN AID

Humanitarian aid oremergency aidis rapid assistance given topeople in immediate distress by individuals, organizations, or

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governments to relieve suffering, during and after man-madeemergencies (like wars) and natural disasters. The term oftencarries an international connotation, but this is not always the case.It is often distinguished from development aid by being focused on

relieving suffering caused by natural disaster or conflict, ratherthan removing the root causes of poverty or vulnerability.

The provision ofhumanitarian aid orhumanitarian responseconsists of the provision of vital services (such as food aid to

prevent starvation) by aid agencies, and the provision of funding orin-kind services (like logistics or transport), usually through aidagencies or the government of the affected country. Humanitarian

aid is distinguished from humanitarian intervention, whichinvolves armed forces protecting civilians from violent oppressionorgenocide by state-supported actors.

The Geneva Conventions give a mandate to the InternationalCommittee of the Red Cross and other impartial humanitarianorganizations to provide assistance and protection of civiliansduring times of war. The ICRC has been given a special role by theGeneva Conventions with respect to the visiting and monitoring of

prisoners of war.

The United Nations Office for the Coordination of HumanitarianAffairs (OCHA) is mandated to coordinate the internationalhumanitarian response to a natural disaster or complex emergencyacting on the basis of the United Nations General AssemblyResolution 46/182.

The Sphere Project handbook, Humanitarian Charter andMinimum Standards in Disaster Response, which was produced bya coalition of leading non-governmental humanitarian agencies,lists the following principles of humanitarian action:

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1. The right to live with dignity.2. The distinction between combatant and non-combatants.3. The principle ofnon-defilement.

THE HUMAN DEVELOPMENT CONCEPT

Human Development is a development paradigm that is aboutmuch more than the rise or fall of national incomes. It is aboutcreating an environment in which people can develop their full

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potential and lead productive, creative lives in accord with theirneeds and interests. People are the real wealth of nations.Development is thus about expanding the choices people have tolead lives that they value. And it is thus about much more than

economic growth, which is only a means if a very important oneof enlarging peoples choices.

Fundamental to enlarging these choices is building humancapabilities the range of things that people can do or be in life.The most basic capabilities for human development are to leadlong and healthy lives, to be knowledgeable, to have access to theresources needed for a decent standard of living and to be able to

participate in the life of the community. Without these, manychoices are simply not available, and many opportunities in liferemain inaccessible.

LITERATURE REVIEW

Global Aid for development is not a chimera. It brings substantialchange in the country.

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The Topics included are as follows:

1. Poverty

2. Agriculture3. Natural Calamities4. Education5. Health6. Infrastructure

POVERTY:

Global justice campaigners place great emphasis on securingpolitical commitment to higher aid funding. However, therelationship between aid volumes and poverty reduction is far fromstraightforward. Greater confidence in aid effectiveness is vital

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now that the response to climate change may substantially increasethe flow of funds from rich to poor countries. As world povertycomes under upward pressure from the economic recession,vigilance of donor intentions has never been more important.

Aid Statistics:

The voluntary transfer of funds from richer to poorer countries in2009 has been provisionally estimated at $119.6 billion. Thecomposition of this simple headline statistic for foreign aid is oftenthe source of confusion.

Firstly, this figure relates only to 23 of the richer OECD countries

for whom aid data is collated systematically. This task iscoordinated by the Development Assistance Committee (DAC).Aid reported by DAC is known as Official DevelopmentAssistance (ODA) and is believed to represent over 80% of allinternational aid.

Non-DAC countries such as China, India and Brazil areincreasingly engaged in strategic aid programmes. Being outside

the ODA structure, these countries do not currently disclose anydata but estimates suggest a total of $8.5 billion for 2007.

Private foundations have also grown so fast that their contributionto overseas development has become significant. Exact figures areuncertain but this sector

Which includes the Gates Foundation - may have contributed over$18 billion to overseas development in 2007.

The formal 2009 ODA statistic includes humanitarian aid and debtrelief, which together account for about $10 billion of the total.Humanitarian aid relates to short term emergencies, usually theimpact of natural disasters or violent conflict on localcommunities.

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Distribution:

The provisional figures for 2009 show that over 30% of ODA was"multilateral aid" made available to support the development

programmers of UN agencies, international NGOs, the WorldBank and regional development banks.

Emergency food supplies in western Kenya Peter Armstrong

The NGOs are valued for their expertise in partnering localgovernment entities and community-based organizations. Thisroute is also an option for bypassing inefficient or corruptgovernment ministries.

The multilateral banks generally offer low-interest loans tocountries whose economic status prevents them from borrowing onreasonable terms in open international markets. Governance of theWorld Bank is however weighted according to the scale of donorfunding.

Bilateral aid" is paid direct to developing countries, usually in theform of grants. Its allocation also reflects the priorities ofindividual donor countries rather than a global strategic plan for

poverty reduction.

The poorest countries are therefore not necessarily the majorbeneficiaries. Generous US aid to Colombia, Egypt and Pakistan ismotivated by geo-political interests as much as concern for

poverty.

Motives for Aid:

The diverse profile of foreign aid may be explained by the multipleaims for which it is granted. There are three broad motives forricher countries to embark on aid programmers.

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Hambantota house destroyed by tsunami Peter Armstrong

The first is the desire to tackle extreme poverty on ethical grounds,recognizing that poor countries may be unable to fulfill the

obligations of international human rights law. Such compassion isespecially powerful in the context of humanitarian emergencieswhen the need for assistance is most apparent, often by virtue ofglobal media coverage.

The second motive stems from recognition that, in a globalizedworld, countries large and small are interdependent. The prosperityof one increases the economic potential of the other.

Controlling the spread of disease, whether in humans, livestock orcrops, requires competence in all governments. And excessiveinequality is known to increase the supply of migrant workers, notalways welcome in richer countries.

Fragile states are less able to prevent the outbreak of armedconflict or, in some circumstances, to stamp out the recruitment offoot soldiers of terrorism. Events in Yemen during 2010 have

prompted a flurry of proposals for increased foreign aid.The third motive is the proactive pursuit of strategic interests.These may be political or economic in nature. Aid is a tool forconstructing alliances in the international domain, now as in theCold War era; And China has adopted an aggressive aid strategy toleverage access to Africas natural resources.

Aid Promises:

Although aid is insufficient as a solution to long termdevelopment, it is nevertheless an essential component. Activiststherefore strive for greater volumes of aid, both from government

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spending allocations and from new sources such as a financialtransaction tax.

Colorful kids in Benin Dan Gerber

Aid contributions by individual countries are monitored byreference to a UN Resolution passed as long ago as 1970. Therichest countries promised to advance their aid budgets

progressively towards a target of 0.7% of national income.

This percentage is somewhat arbitrary in relation to the needs ofthe poor but it has remained an acknowledged benchmark. Thecommitment was renewed in the Monterrey Consensus of 2002

and once again in 2008 at the Doha International Conference onFinancing for Development. The European Union has established2015 as the date for reaching the 0.7% target.

To hasten recalcitrant countries along the path to this goal,development agencies press world leaders to make shorter term

promises. The G8 Gleneagles summit in 2005 delivered acommitment to increase aid by 60% (a rise of $50 billion pa)

between 2004 and 2010. Annual aid for Africa would double fromits 2004 level of $25 billion.

Millennium Development Goals:

A principled rights-based approach to global poverty, in which its

eradication would become the prime objective of economicmanagement, has never been adopted by the internationalcommunity. However, the failure of macro-economic policies ofthe 1980s and 1990s created pressure on world leaders to establishaccountability for poverty reduction.

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This led to the Millennium Declaration, a promise signed by allworld governments to achieve eight quantifiable MillenniumDevelopment Goals (MDGs) with targets to be met by 2015. Thefirst Goal addresses global poverty but its target to halve the rate

(by reference to the international poverty line) falls far short of avision of eradication. Even if this target is achieved, current

projections suggest that 800 million people would remain inextreme poverty in 2015.

Nevertheless, the MDGs have added pressure on developingcountries to put poverty reduction at the center of their nationaleconomic strategies. Since 1999 international donors link their

support to Poverty Reduction Strategy Papers (PRSPs) whicharticulate how a country's long term growth plans will be tailoredto benefit the poor. Equally important, the World Bank and IMFhave been instructed to realign their priorities in the same way.

Unfortunately, in the least developed countries, progress has beentoo slow and even set back according to UN Secretary-General,Ban Ki-moon, in his latest assessment published in February 2010.He observes that the rich G8 countries need to boost aid by $35

billion in 2010 in order to meet their promises made as recently as2005. A high level UN summit in September 2010 will summonworld leaders to find ways to accelerate progress.

Solutions to Global Poverty

International Priorities

Anti-poverty campaigners continue to press rich countrygovernments to honor promises made in the MillenniumDeclaration and in particular to increase aid budgets to 0.7% ofnational income. And they continue to lobby for the removal of

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agricultural subsidies that protect American and European farmersat the expense of the poor.

There is a new focus on tax treatment by multinational

corporations active in developing countries. Their avoidancemaneuvers are estimated to deny governments annual tax revenuestotaling $160 billion.

National Priorities

Evaluation of MDG programmers increasingly links strongnational ownership with successful outcomes. Donors are thereforeencouraged to concentrate their support on building the capacity of

national and provincial government institutions to implementdevelopment projects.

A logical corollary is to advocate greater powers of localcommunities and individual households to control their ownaffairs. An infusion of accountability through democracy andindividual rights creates the environment in which governmentscome under pressure to end wasteful practices and corruption.

Vietnam's success didn't follow western rules United NationsDevelopment Programmed

Evidence that the voice of the poor is being heard lies in thesignificant new commitments to agriculture that manygovernments in Africa have introduced in pursuit of food security.

There is also interest in the concept of cash transfers as safety netpayments, often conditional on childrens attendance at school andfor immunization.

The two countries with the greatest success in poverty reduction,China and Vietnam, raise awkward questions because theirstrategies are so at odds with the western model. These

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governments have retained strong state control over key sectors oftheir economies, permitting only gradual liberalization.Furthermore, they show little inclination to relax tough restrictionson human rights and democratic freedom.

AGRICULTURE:

Agricultural development is a proven engine of growth thatreduces global hunger and poverty. Historical evidence from 18thcentury England, 19th century Japan, and modern China showsthat agricultural growth was a key factor in industrial growth andeconomic development.

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Clear-felling of forests for agriculture, post-conflict Liberia,Agriculture is a crucial economic activity, providing employmentand livelihoods for many and serving as the basis for manyindustries. About 203 million people, or 56.6 percent of the total

labor force, were engaged in agricultural labor in 2002. In mostAfrican countries, agriculture supports the survival and well-beingof up to 70 percent of the population. Thus, for many, theirlivelihoods are directly affected by environmental changes, bothsudden and gradual, which impact on agricultural productivity.

Livestock and environmental goods offer some security from suchshocks. About 70 percent of the rural poor in Africa own livestock,

contributing significantly to household and community resilienceto disasters, particularly in arid and semi-arid zones. More than200 million people rely on their livestock for income (sales ofmilk, meat, skins) and draught power. Overall, livestockcontributes about 30 percent of the gross value of agricultural

production in Africa. According to the International LivestockResearch Centre (ILRI), opportunities exist to commercializelivestock production to target regional deficits in livestock

products where they can be produced competitively.

The irony is that, despite the majority of the total labor forceworking in agriculture, the region is still unable to feed its growing

population. For example, between 20 and 75 percent of thepopulation in 29 countries in Central, Western, Eastern andSouthern Africa were reported in 2004 to be undernourished. In theDemocratic Republic of the Congo (DRC), where 75 percent of thetotal populations of 51 million people were reported to be

undernourished, 50 percent of infant mortality is related tomalnutrition. Poor nutrition impacts on health, education and theopportunity to participate fully in community and public affairs.Most often women and children carry a disproportionate burdenfrom food insecurity.

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Africa spends between US$15 and 20,000 million on food importsannually, in addition to the US$2,000 million it receives in foodaid annually. These are vast amounts of money that the region canill afford to externalize, and which could be used to revitalize

agriculture, particularly the low-input agriculture whose yields arelimited, and thus increase productivity. About 70 percent ofAfricas poor, and at least two-thirds of its population, live in ruralareas depending mainly on agriculture and natural resources fortheir livelihoods.

Agriculture provides the opportunities to address extreme povertyin Africa, where the proportion of people living below the poverty

line, of less than US$1 a day, increased from 47.6 percent in 1985to 59 percent in 2000. As a result, more and more people in Africahave limited access to food and other basic amenities such as

potable water, minimum health care and education, effectivelylimiting the opportunities available to them. Poverty andnutritional status are closely linked. About 26 percent of the peoplein Africa more than 200 million people, particularly women andchildren are undernourished; this is a reflection of poverty. Itdeepens other aspects of poverty such as incapacity to work and

resistance to disease. It also affects childrens mental developmentand educational achievements.

Agriculture is not limited to subsistence food crops and livestockproduction but includes crops grown for sale, such as tobacco,cotton and flowers. Most agricultural households rely to someextent on sale of agricultural products. Thus, access to markets,finance and supporting infrastructure are crucial.

Horticulture, which includes vegetables, fruits and cut flowers, hasbecome a major activity. It has grown to be the single largestcategory in world agricultural trade, accounting for over 20 percentof such trade in recent years. While in sub-Saharan Africa (SSA),horticultural exports now exceed US$2,000 million, this is only 4

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percent of the global total. Significant opportunities for expansion,therefore, exist in Africa to boost employment as well as foreigncurrency earnings. The challenges would be to adequately dealwith environmental problems, which include pollution from

chemicals.

An opportunity which is yet to be fully exploited is irrigatedagriculture. Only six percent of the total cultivated land is underirrigation in Africa, compared to 33 percent in Asia. In a regionwhere droughts are prevalent, often destroying crops andexacerbating food insecurity, irrigation could be a key factor inenhancing food security. Irrigation increases yields of most crops

by between 100 and 400 percent, and it has been projected that inthe next three decades, 70 percent of gains in cereal productionglobally would be from irrigated land. According to the EconomicCommission for Africa (ECA), little progress towards sustainabledevelopment can be achieved until Africa reaches a minimum levelof developing and managing water resources for secure food andagricultural production.

In order to maximize the potential of the agricultural sector,

institutional and governance reforms which increase opportunitiesfor rural people, such as better access to finance, and support thedevelopment of small and microenterprises is essential.Agricultural opportunities are closely linked to global trade

policies and practices.

Boosting agricultural production:

Various policy responses have been proposed to reverse the slidein agriculture and help boost production and enhance food security.One of the major responses is the Comprehensive AfricaAgriculture Development Programmed (CAADP), which wasendorsed by African governments in late 2002 in the context of the

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New Partnership for Africas Development (NEPAD). TheCAADP has three immediate "pillars" and one long-term pillarwhich together can help tackle Africas agricultural crisis. Themutually reinforcing pillars on which to base the immediate

improvement of agriculture, food security and trade balance are:

Irrigation. Large-scale farming in south-western Burkina Faso.

Extending the area under sustainable land management and reliablewater control systems. Building up soil fertility and the moisture-holding capacity of agricultural soils, and rapidly increasing thearea under irrigation, especially small-scale irrigation, will not only

provide farmers with opportunities to raise output on a sustainablebasis, but will also contribute to the reliability of food supplies.

Improving rural infrastructure and trade-related capacities formarket access. Roads, storage, markets, packaging and handlingsystems, and input supply networks should be improved to raisethe competitiveness of local production vis--vis imports andexport markets.

Increasing food supply and reducing hunger. Several factorsincluding the limited use of irrigation and other inputs undercutcrop and livestock yields. There is a need to improve access totechnology by small farmers. These can play a major role inincreasing food availability close to where it is most needed,raising rural incomes, and expanding employment opportunitiesand contributing to growth inexports. Food storage and its

protection from mildew and pests are of critical importance. It isalso important to respond to the growing frequency and severity of

disasters and emergencies which impact on food security. Inaddition, conflict and war also disrupt food production. As a result,more aid is being diverted to emergency relief than to necessarylong-term development.

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USAID supported greenhouses allow farmers in Afghanistan likeMola Shah Goel to grow fruits and vegetables for sale year round.

The recent global recession and food price crisis added to the

suffering of people living in poverty and with chronic hunger.Around 75% of people in developing countries live in rural areas,with the vast majority dependent on agriculture for theirlivelihoods. In many famine prevalent countries, farming is donemostly by women. However, women only own 2% of landworldwide and often have limited access to agriculture inputs,loans, and opportunities to learn about improved techniques.

The United Nations Millennium Development Goals broughtglobal attention to the problem of food insecurity and the importantrole of agriculture innovation and investment in developingcountries. The first goal calls for the eradication of extreme

poverty and hunger and requires significant investment inagriculture by donors, developing countries, and the private sector.USAID assists developing countries harness agriculture foreconomic growth to increase the supply and lower the cost of food

by making agriculture more efficient, productive, and sustainable.

At the April 2009 G20 Summit, President Obama called uponCongress to double U.S. support for agricultural development indeveloping countries to more than $1 billion. Recognizing thatsolving food insecurity requires engaging the worlds poorest

populations toward rapid, sustained economic growth, thePresident tasked USAID to take a leading role in the endeavor.

USAIDs approach:

USAID has a long history of technical leadership in internationalagricultural development by drawing upon the expertise of U.S.universities, industry, non-governmental and private voluntary

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organizations, multilateral development partners, and its owntechnical staff. USAID supports country-driven strategies andinvests in strengthening both public and private institutions thatunderpin growth of the agricultural sector. The Agency works

throughout the sector, from developing improved seeds andmanagement practices to strengthening the industries along theagricultural value chain. USAID is scaling-up a comprehensiveapproach to agriculture by:

1. Developing agricultural markets, trade, and finance2. Promoting food and nutritional security3. Funding collaborative science and technology research

efforts4. Organizing volunteer technical assistance and extension

services5. Fostering support for biotechnology-related decisions and

access6. Developing and supporting sound programs for livestock and

sustainable agriculture.

NATURAL CALAMITIES:

A natural disaster is the effect of a natural hazard (e.g., flood,tornado, hurricane, volcanic eruption, earthquake, or landslide). Itleads to financial, environmental or human losses. The resulting

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loss depends on the vulnerability of the affected population toresist the hazard, also called their resilience. This understanding isconcentrated in the formulation: "disasters occur when hazardsmeet vulnerability." A natural hazard will hence never result in a

natural disaster in areas without vulnerability, e.g. strongearthquakes in uninhabited areas. The term natural hasconsequently been disputed because the events simply are nothazards or disasters without human involvement.

ECONOMY:

Haiti is the poorest country in the Western Hemisphere. Some ofits social indicators are among the weakest in the world. It ranks149th out of 179 countries in the United Nations DevelopmentProgram (UNDP) Human Development Index. Around 54 percentof the population lives on less than US$1 a day and 78 percent onless than US$2. There is a high infant mortality rate (57 for every1000 births) and the prevalence of HIV among those aged 15-49 is2.2 percent, the highest national rate outside Sub-Saharan Africa.

Despite the negative impact of the food crisis, hurricanes andworld economic turmoil, Haiti posted five successive years ofeconomic growth since 2004, when the economy contracted by 3.5

percent. GDP growth came in at 0.8 percent in the country's FY08(the year through September 2008) and reached 2.9 percent forFY09.

The contraction projected for 2010 will be lower than expected

(7.0 percent rather than 8.5 percent), and sector-based growth intextiles in particular is promising. Merchandise exports recoveredin full by mid-year of 2010, and the third quarter output levelexceeded that of 2009. The economy has already seen some initial

benefits from debt forgiveness and remittances. Together with highaid inflows, these have allowed the Central Bank to build up

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international reserves and stabilize the currency. Inflation has beencontained at 4.7 percent (against initial forecasts at 8.5 percent).Government revenue recovered to 80 percent of their 2009 level,after a sharp decline early in the year, and fiscal policy is on a

reasonable track.

Political Situation:

On the political front, the continuing existence of some 1,300camps for displaced people, the weak capacity of rule-of-lawinstitutions, and the political unrest associated with the electoral

period, all contribute to a volatile environment. Presidentialelections, held on November 28, 2010, resulted in a politicalstalemate. A runoff with the two leading candidates was originallyscheduled for early January but has been postponed, pending areview of first round results by the National Electoral Commission,with the support of the Organization of American States (OAS).

GENERAL OVERVIEW:

The catastrophic impact of a magnitude-7.0 earthquake on January

12, 2010 created massive new challenges for Haiti, already thepoorest country in the Western Hemisphere.

The earthquake, which affected Haiti's capital and nearby townskilled up to 230,000 people, making it one of the deadliest naturaldisasters on record. Housing, infrastructure, public buildings and

businesses all sustained considerable damage. Roughly 1.3 millionpeople were displaced.

Damages and losses were evaluated at around US$8 billion or 120percent of GDP by the Post-Disaster Needs Assessment (PDNA)conducted by the World Bank and other donors, under the HaitianGovernment's leadership. This set total reconstruction needs atUS$11.5 billion.

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In March 2010, donors pledged US$9 billion to support theGovernment's Action Plan for National Recovery andDevelopment. This plan, which draws on the PDNA as well asHaiti's existing national strategy, aims to use reconstruction as an

opportunity to spur sustainable development by improvinginfrastructure, decentralizing economic activity, reducingvulnerability, and developing agriculture, manufacturing andtourism. At the end of 2010, the international community haddelivered over half of its pledge for the first 24 months: US$1billion in debt relief had been provided and US$2.7 billionapproved for projects and programs, with US$1.2 billion of thesefunds spent.

Following the January 12, 2010 earthquake in Haiti, the WorldBank Group restructured its Haiti portfolio by reallocatingresources and modifying activities toward urgent post-earthquake

priorities. The World Bank Group pledged US$479 million for thefirst two years and has cancelled Haiti's remaining US$39 milliondebt to IDA.

WORLD BANK GROUP SUPPORT:

World Bank funding and projects

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To help Haiti recover from the January 12 earthquake, the WorldBank Group pledged US$479 million for the first two years,including relieving Haiti's debt to the World Bank, which has beencompleted.

As of January 2011, the World Bank Group has delivered US$340million or two thirds of its pledge. Of this, US$129 million (orUS$11 million per month) has been disbursed for:

1. Emergency aid to the vulnerable (food supplements, schoolfeeding, canal clearing. hurricane shelter, disaster riskmanagement).

2. Budget support to close the 2010 financing gap.3. Reconstruction of transport infrastructure, government

facilities, and rural water systems, the management of debris,and priority community investments.

4. Long term investments in improving education, agriculture,electricity, and Haiti's private sector environment.

On March 18, the International Development Association (IDA)approved the Infrastructure and Institutions Emergency Recovery

Project (US$65 million) aimed at rebuilding public institutions andtransport infrastructure and supporting crisis response andreconstruction planning. Over the last six months, the Bank hasalso approved additional financing in the amounts of US$30million in budget support to provide Haiti with urgently neededfunds to close its budget gap and support the government's effortsto increase public sector transparency and accountability; US$12million to restore and expand access to primary education, andUS$15 million to help communities initiate reconstruction throughcommunity-driven mechanisms.

A US$30 million project for community-based housing wasapproved at the end of October 2010. The World Bank Group'sexisting Country Assistance Strategy for Haiti, which was

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approved in June 2009, will be revised in the fall 2011, reflectingthe resources available to Haiti from IDA under IDA16.

Disbursements

The Bank portfolio currently includes 16 active projects for a totalof US$337 million. The Bank has also provided US$42.5 millionin budget support to the Government of Haiti since January 2010.IDA has disbursed US$11 million per month on average since theearthquake.

Following the earthquake, the Haiti portfolio was restructured todirect resources toward urgent post-earthquake priorities through

the reallocation of funds and the modification of activities in orderto adapt to institutional capacity changes.

Support for the private sector

Since the earthquake, IFC approved 5 projects for US$49.6million. Three of these projects for US$15.3 million in thegarments, hotels, energy, and mining industries, are already underimplementation, in addition to a trade finance guarantee facility, anequity investment in a local bank to expand access to finance toSMEs, and a 30 MW energy project approved prior to the quake.IFC advisory services also ramped up operations to foster a betterinvestment climate, improve access to finance, and to developmanagement skills for more than 600 small entrepreneurs. IFC'scombined investment and advisory projects are supporting thecreation of 5,000 new jobs as well as safeguarding 5,000 existing

jobs. IFC also completed the structuring of the international

bidding process for TELECO, which is bringing the country'slargest foreign direct investment since the earthquakea US$100million investment by Vietnam's biggest mobile telephoneoperator, Vettedto expand telecommunications services in Haiti.

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Haiti Reconstruction Fund

At the request of the Government of Haiti, in April 2010, theWorld Bank set up the Haiti Reconstruction Fund (HRF), a multi-

donor trust fund. The World Bank serves as a trustee for the HRF.In March 2010, donors pledged over US$500 million to the HRF.To date, 12 donors have confirmed their pledges for a total ofUS$267 million, all of which has been received. Since June, theHRF has allocated US$193 million for reconstruction.

RESULTS:

Results of recent World Bank support to Haiti include:

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1. Assessed structural state of 400,000 buildings in Port auPrince; these assessments are crucial to reconstruction

planning.2. Removed 100,000 cubic meters of trash and debris from key

drainage canals in Port-au-Prince, reducing flood risk tocamps in the capital.

3. Provided 50,000 solar lanterns to families in Port-au-Prince,increasing safety and reducing fire hazard.

4. Provided food supplements to 200,000 children fewer than 2and health care services to pregnant and lactating women andinfants in collaboration with the World Food Program and thePan-American Health Organization.

5. Funded 180,000 children to attend school and fed 80,000school children a hot meal every day.

6. Completed six water supply systems, benefiting 37,000people in rural communities

7. Housed and equipped Ministry of Economy and Finance andTax Office (over 500 staff), allowing salaries to be paid andrevenues to be collected.

8. Supported the creation of 5,000 new jobs as well as

safeguarding 5,000 existing jobs.

EDUCATION:

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Unemployment, poverty, bad health care system & lack ofeducation has always been a black side of our world economy &human beings have always being struggling hard to change this

black into white.& from the year 1970s toll date there has been a

dramatic change & we are fatly overcoming from all the aboveproblems. Because 1970 was the time when global aid startedworking for the development & betterment of the worldEducation is the core weapon for fighting from all the above

problems everyone has a right to education & education shall befree at least in the elementary & fundamental stage of life.

Average literacy rate in developing countries have increased nearly

12% in the last 20 years to 83%

In countries like Africa the adult literacy rate climbed by Anaverage of 17 percent between 1985 To 1994 and 2000 to 2007 toreach 62 percent.With some of the worlds lowest literacy rates, Burkina Fasoincreased their Adult literacy rate from 14 percent to 29 percent

between 1985 to 1994 and 2000 to 2007, and Chads increased

from 12 percent to 32 percent.

Global Partnership Momentum has been building for increasedattention to making education Available for all. The 1GoalCampaign recruited the support of 18 million People worldwide.The Fast Track Initiative (FTI), formed in 2002, is the first-everglobal compact on Education. FTI is a partnership between Donorsand developing countries to Accelerate progress toward UPE.

In the African FTI-endorsed countries alone, 15.2 million Childrenwere enrolled in School between 2000 and 2006, a 52 Percentincrease. Developing countries must increase their expenditures onEducation to maintain the progress that has been made.In India , Aim Premji has gathered a wealth of goodwill. He is thefirst Indian to have made a staggering individual donation of $2

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billion (around Rs 8,800 crores) to further school education inIndia. This amounts to 28.34 per cent of what the Indiangovernment has allocated in the 2010-11 Budget for education (Rs31,036 crores, or $6.72 billion).

Tatas are the best known for philanthropy through their varioustrusts. More recently, Sunil Bharti Mittal and Shiv Nadar of HCLTechnologies have donated liberally for education. AnandMahindra too gave a generous donation, but that was to anAmerican educational institution.& Bill & Melinda GatesEducation Grants This program has a national network of 100colleges in 22 states, servicing almost a million students

Donors have played a key role in supporting Ethiopias Educationreforms by providing substantial amounts of aid to education, andalso through an effective partnership with government.

The Ethiopian government led the process of developing a sector-wide approach, and then worked with donors to refine andelaborate this.Progress has been monitored jointly. This process has allowed for

long-term strategic planning, with an ability to respond to newneeds as these develop. Ethiopian government officials and donorshave found an effective balance between supply-side policies (suchas the construction of schools in remote areas) and Complementary

policies to stimulate demand

HEALTH:

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GLOBAL HEALTH

Global Health has recently become a fashionable term. NewGlobal Health institutes have been created, and new Global Health

trainings organized. But what does the term Global Health reallymeans? Perhaps it is best defined by the World HealthOrganization (WHO)s mandate: Health is a shared responsibility,involving equitable access to essential care and collective defenseagainst transnational threats. There are two global elements inthis description: a globally shared responsibility for the health ofall people, and global threats posed by infectious diseases.However, these two global elements of an emerging Global Health

paradigm are not mutually exclusive. The fact that viruses do notrespect national borders contributes to an awareness of globalresponsibility for the health of all people. Further, the risk ofuncontrolled epidemics proliferating from low-income to middle-and high-income countries motivates the more wealthy to help

poor people because the more wealthy do not want to get poorpeoples diseases. It is probably not a coincidence that OfficialDevelopment Assistance (ODA) for health seems to focus on

infectious diseases disproportionately. However, a globalresponsibility for the health of all people should extend beyond awillingness to tackle the global threats posed by infectiousdiseases and ensure that there is equal attention and solidarity fornon-infectious diseases.

The global AIDS response: a synthesis of medical relief and

health development paradigms

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Resolution 46/182 of the General Assembly of the United Nations which paved the way for the United Nations Department ofHumanitarian Affairs and later the Office for the Coordination ofHumanitarian Affairs (OCHA) explicitly prescribes that to

ensure a smooth transition from relief to rehabilitation anddevelopment, emergency assistance should be provided in waysthat will be supportive of recovery and long-term development.Thus, emergency measures should be seen as a step towards long-term development.This resolution seems to confirm the primacyof (health) development over (medical) relief, and theexceptionality of relief. In short, if and only if the magnitude andduration of a crisis is beyond the response capacity of the affected

country, the relief response is appropriate, and even then only in amanner that is supportive of future development efforts. But howdoes one judge whether or not the magnitude and duration of a

problematic situation is significant enough to call it an emergency?And how does one determine what the appropriate response would

be, and whether or not it is within or beyond the capacity of theaffected country? Could it be that the non-existence orinaccessibility of primary health care constitutes a crisis in itself?

And if countries are not wealthy enough to finance the US$40 perperson per year required for the equitable provision of a basic setof much needed health services.

The introduction of antiretroviral treatment in 1996 revolutionizedthe treatment of HIV/AIDS, adding decades of life to people livingwith the disease. Access to treatment has expanded dramaticallyover the past decade as a consequence of an unprecedented global

Effort to combat HIV/AIDS, but intensified efforts in preventionand treatment are still needed to reverse the course of the

pandemic.The early response to the emergence of HIV/AIDS was slow,resulting in a silent spread of the virus around the globe. However,in recent years the fight against HIV/AIDS has gained remarkable

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momentum. Unprecedented financial and political commitmentsby the global community have permitted millions of people in low-and middle-income countries to benefit from access to effectivetreatment.

Global Progress Funding for HIV/AIDS in low- and middle-income countries increased from a mere $300 million (U.S.) in1996 to $13.6 billion (U.S.) in 2008.In addition, several newinstitutions were created to coordinate and finance global efforts tocombat the pandemic:

The Joint United Nations Programme on HIV/AIDS (UNAIDS)

was launched in 1996 to strengthen the U.N. response to the pandemic. It coordinates the HIV/AIDS activities of 10 U.N.organizations, provides strategic information and advocates for agreater political and financial commitment to control HIV/AIDS.

The Global Fund to Fight AIDS, Tuberculosis and Malaria(Global Fund) was established in 2002 as an innovative financingmechanism to raise and disburse funding to countries in need. As a

partnership representing public and private stakeholders, theGlobal Fund uses a demand-driven, performance-based model.Countries can apply for grants to finance their response toHIV/AIDS, whereas continued financing is dependent onachievement of targets. By December 2009, the Global Fund hadcommitted $10.8 billion to 140 countries for HIV/AIDS

prevention, treatment and care programs.

The U.S. Presidents Emergency Plan for AIDS Relief

(PEPFAR), established in 2003 by the U.S. government, representsthe largest investment by any nation to combat a single disease inhistory. PEPFAR contributed $25 billion. (U.S.) between 2004 and2009 to address the global HIV/AIDS pandemic. Around 80

percent of this funding was channeled to 15 focus countries, withmuch of the remainder (16 percent) channeled through the Global

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Fund. In May 2009, U.S. President Barack Obama asked Congressto appropriate $63 billion (U.S.) between 2010 and 2015 for globalhealth, including $51 billion (U.S.) to address HIV/ AIDS,tuberculosis, and malaria. This additional funding is intended to

support the prevention of more than 12 million new HIVinfections; provide support for more than 4 million people ontreatment and support care for more than 12 million people,including 5 million orphans and vulnerable children.

Innovation and Scientific Advances .The introduction ofantiretroviral therapy (ART) in 1996 was a major scientific

breakthrough that substantially improved the treatment of HIV-

infected people. Another major innovation was the introduction offixed-dose combinations of antiretroviral drugs in a single pill,which reduces the number of tablets a patient has to take each day.This improves medication compliance and reduces thedevelopment of resistance as well as the possibility of side effectsand drug interactions. Significant efforts are also under way todevelop and implement new prevention strategies andtechnologies:

The timely administration of antiretroviral treatment to HIV-infected pregnant women was found to significantly reduce the riskof HIV transmission from mother to child. Prevention of mother-to-child transmission (PMTCT) was recommended as an effectivestrategy to halt transmission of HIV from mother to child in 1998,and it is now estimated that mother-to-child transmission can bevirtually eliminated by 2015 with scaled-up funding.

Male circumcision has been found to reduce the risk ofheterosexually acquired HIV among men by 60percent.It is nowrecommended by the World Health Organization (WHO) andUNAIDS as an effective prevention strategy.

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Reduction in mortality: UNAIDS estimates that the globalnumber of AIDS-related deaths declined for the first time ever,from 2.2 million in 2005 to 2 million in 2008, largely due to thedramatically improved access to ART. The number of child deaths

due to AIDS peaked at 320,000 in 2003 but has declined since thento 280,000 in 2007. According to UNAIDS, this is both a result ofincreased ART access and a decline in new infections amongchildren. Decline in global HIV incidence: The number of new HIVinfections declined from 3 million in 2001 to 2.7 million in 2008.In some countries, the growing access to PMTCT considerablyreduced mother-to child-transmissions.

Moving Forward

Scaling up prevention strategies. The number of new infectionsstill outpaces the progress in access to treatment. For every two

people who receive HIV treatment, five are newly infected. Only

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20 percent of those in need had access to prevention strategies in2006.Increasing access to scientifically proven preventionstrategies such as PMTCT and male circumcision is a global

priority. In addition, studies suggest that a 100 percent uptake of

male circumcision in sub-Saharan Africa could prevent 5.7 millionnew infections over 20 years. Prioritization of prevention alsoneeds to be reflected in global investments. Close to half thefunding UNAIDS estimates is required to achieve the goal ofuniversal access to prevention, treatment and care by 2010 will beneeded for prevention [$20.6 billion (U.S.) out of $44.9 billion(U.S.)].Addressing HIV/AIDS and TB co-infection Tuberculosis(TB) is one of the leading causes of death for people living with

HIV, accounting for an estimated one-quarter of AIDS deaths inlow and middle-income countries. While diagnosing and treatingTB is critical, only 32 percent of people who were living with HIVand diagnosed with TB received both antiretroviral and anti-TBtreatment in 2007. A stronger effort on TB case detection andtreatment could yield substantial reductions in HIV related deaths.Financing rising treatment costs Although dramatic progress has

been made, in 2009 only 37 percent of those in need of treatment

had access to it. In addition, the success of ART in increasing lifeexpectancy, coupled with the growing rates of new infections, iscausing ever-increasing treatment costs. The challenge of financingthese costs through sustainable, innovative domestic and globalfinancing mechanisms is not yet solved. In this context, it must beensured that escalating treatment costs will not squeeze outfunding for HIV-prevention measures.

Improving health is central to the Millennium Development Goals,and the public sector is the main provider of health care indeveloping countries. To reduce inequities, many countries haveemphasized primary health care, including immunization,

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sanitation, access to safe drinking water, and safe motherhoodinitiatives. Data here cover health systems, disease prevention,reproductive health, nutrition, and population dynamics. Data arefrom the United Nations Population Division, World Health

Organization, United Nations Children\s Fund, the Joint UnitedNations Programmed on HIV/AIDS, and various other sources.The Global Fund to Fight AIDS, Tuberculosis and Malaria wascreated in 2002 to dramatically increase resources to fight three ofthe worlds most devastating diseases and to channel the money toareas of greatest need.

While the majority of Global Fund investments support treatment

and prevention efforts in the fight against HIV/AIDS, it hasemerged as the predominant funder of tuberculosis and malaria

programs, making up two-third of international commitments forthese diseases.

As of December 2010*, with Global Fund supported-programs andresources in:

Fighting HIV/AIDS

3 million people are receiving antiretroviral treatment150 million HIV counseling and testing sessions were conducted5 million basic care and support services were provided toorphans and vulnerable children930,000 HIV-positive pregnant women have received PMTCTtreatment (Prevention from Mother to Child Transmissions)

Fighting Tuberculosis

7.7 million new cases of infectious tuberculosis were detectedand treated

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48% of the 2009 estimated international targets for detection ofTB cases and treatment using DOTS were contributed by GlobalFund supported programs

Fighting Malaria

160 million bed nets were distributed to protect families fromtransmission142.4 million malaria drug treatments were delivered.

INFRASTRUCTURE

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INTRODUCTION

1. In 2007, world financial markets entered a period of greatturmoil. By 2008, the world was in the midst of the worst financialand economic crisis in more than half a century, with the global

financial system threatened with collapse and sharp declines inactivity across major economies. There is already much debate andresearch about the causes and triggers of the crisis. The crisisstarted in the U.S. financial sector and spread to other financialmarkets and then gradually to the real economy globally. Thereseems to be wide consensus that the crisis originated in U.S.financial institutions, which faced large but difficult-to estimatelosses when the housing and securities markets turned negative.

This has been attributed to the widespread use of very highleverage by financial institutions in the U.S. and in some othercountries to underwrite and invest in difficult-to-value structuredfinancial instruments. Some have argued that such behavior, whichmight reflect a failure of governance in large complex financialinstitutions, was made possible by lax regulation and supervisionin the U.S. and other major financial centers. Many analysts

believe that relatively easy money and the moral hazard due to the

Greenspan Put created the environment for the housing andfinancial asset bubbles to develop, and that large current accountimbalances contributed to propagating the crisis. This evaluationwill discuss the critical vulnerabilities that were important inshaping or exacerbating the financial crisis as a basis for evaluatingthe IMF surveillance, but it will not expound on the relative rolesof these factors in bringing about the crisisthis will be thesubject of debate for many decades. The global financial crisis,

brewing for a while, really started to show its effects in the middle

of 2007 and into 2008. Around the world stock markets havefallen, large financial institutions have collapsed or been boughtout, and governments in even the wealthiest nations have had tocome up with rescue packages to bail out their financial systems.

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On the one hand many people are concerned that those responsiblefor the financial problems are the ones being bailed out, while onthe other hand, a global financial meltdown will affect thelivelihoods of almost everyone in an increasingly inter-connected

world. The problem could have been avoided, if ideologuessupporting the current economics models werent so vocal,influential and inconsiderate of others viewpoints and concerns.

In 1970, the worlds rich countries agreed to give 0.7% of theirgross national income as official international development aid,annually. Since that time, despite billions given each year, richnations have rarely met their actual promised targets. For example,

the US is often the largest donor in dollar terms, but ranks amongstthe lowest in terms of meeting the stated 0.7% target.

The World Bank Program in India

To support India in achieving its long-term vision of a country freeof poverty and exclusion, the World Bank Groups Country

Strategy for India for FY 2009-2012 (CAS) is closely aligned withthe objectives outlined in the country's Eleventh Plan.

World Bank lending to India has diverged from initial plans speltout in the Country Strategy due to the impact of the globalfinancial crisis, the World Banks efforts to refocus, realign andconsolidate the India program, and the increased demand from theGovernment for more financing.

In FY10, the World Bank lent a record $9.2 billion to India,compared to $2.3 billion in FY09. Fourteen new projects wereadded in FY10, and the project pipeline has grown in light ofincreased demand from the Government of India. The average sizeof requested projects has increased. And, the volume of Banklending has shifted further towards infrastructure, the delivery of

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essential social services, and increasing engagement on urbanissues and agriculture.

World Bank lending to India is organized around the following key

challenges:

1. Achieving Rapid and Inclusive Growth

Indias integration into the global economy has been accompaniedby impressive economic growth that has brought significanteconomic and social benefits to the country. Nevertheless,disparities in income and human development are on the rise. Alarge section of the population - especially the poor, Scheduled

Castes, Scheduled Tribes, Other Backward Classes, minorities andwomen - lack access to the resources and opportunities needed toreap the benefits of economic growth. To assist the government inachieving rapid inclusive growth, the World Bank is supportingactivities which address both cyclical and structural impedimentsto growth, as well as the constraints to making growth inclusive:

Building Strong Partnerships with Low-Income States

While Indias higher-income states have successfully reducedpoverty to levels comparable with the richer Latin Americancountries, its seven poorest states - Bihar, Chhattisgarh,Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and UttarPradesh -lag behind their more prosperous counterparts and arehome to more than half of Indias poor. The World Bank isincreasing support to kick-start development in these low-incomestates by helping them to develop into attractive investment

destinations, and raise the standards of living of their people byimproving the delivery of public services.

In Bihar, the World Bank is supporting critical structural reforms(recently closed BiharDevelopment Policy Loan I), infrastructuredevelopment, and the building of rural livelihoods (Bihar Rural

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Livelihoods Project). It is helping the state recover from thedevastating 2008 Kosi river floods (Bihar Kosi Flood RecoveryProject, $220 million), and supporting the development of acomprehensive disaster management program. A grant forFlood

Management Information System is helping to reduce the statesvulnerability to floods. Several Bank-supported national programs

such as the Sarva Shiksha Abhiyan and the National Highwaysprogram - also assist Bihar.

Orissa, until the turn of the millennium, was among the poorestand the most highly indebted states in the country. Today, it isrecognized as a state in transition. The World Bank has supported

the state for over a decade. Two World Bank Development PolicyLoans/credits have supported the states own efforts at structuralreform in public financial management, investment climate,governance and accountability. A third Development Policy Loanwill ofInfrastructure

Indias rapidly growing economy has been placing huge demandson power supply, roads, railways, ports, transportation systems,and water supply and sanitation. But, bottlenecks in both urban and

rural infrastructure have been eroding the countryscompetitiveness.

The Government of India has increased infrastructure investmentsunder the Eleventh Five Year Plan. However, with India's lowtaxation base only some 15-16% of GDP is collected as taxes inIndia compared to 25-40% in developed countries - the country isunable to invest the required amounts through its budgetaryresources. As such, World Bank support to improving Indiasinfrastructure is critical, and the Bank's country strategy advocatesgreater investments in infrastructure as a priority to attractinvestment and generate employment. World Bank support to thesector includes:

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Improving Infrastructure: The Government is encouraging privateparticipation in the expansion of critical infrastructure. To supportthis, the World Bank, in September 2009, agreed to extend$1.195

billion to the India Infrastructure Finance Company Limited

(IIFCL) to help finance public-private partnerships ininfrastructure, especially in the roads, power and ports sectors oninclusion and service delivery, where critical UrbanDevelopment, In the next 20-25 years, Indias urbanization level isexpected to rise from the present 30% to 40- 50%, with over 60cities of 1 million plus population contributing about 70% ofIndias GDP. Yet, Indias growing cities and towns face majorchallenges in creating adequate infrastructure including in the

transportation, water, solid waste, and power sectors. The WorldBank is helping streamline urban transport in Mumbai and improvethe delivery of urban civic services in Andhra Pradesh, Tamil

Nadu, and Karnataka. The Bank has also sought to bring in globalbest practices in the urban water sector. A successful pilot hashelped to provide continuous, reliable water supply in three urbanareas in Karnataka. Going forward, it will be essential for India tointroduce policy and institutional reforms in land use planning,

municipal finance, institutional models, and invest in infrastructureand service delivery to manage its cities efficiently. While stategovernments have the more critical role in transforming Indiascities, the Government of Indias support through national

programs is significant. World Bank support for the JawaharlalNehru National Urban Renewal Mission (JNNURM) is underpreparation .

2. Ensuring Development is Sustainable

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http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295615&Projectid=P083780http://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295615&Projectid=P083780http://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295615&Projectid=P079675http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082510http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082510http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082510http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:22322364~menuPK:295589~pagePK:2865066~piPK:2865079~theSitePK:295584,00.htmlhttp://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295615&Projectid=P083780http://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295615&Projectid=P083780http://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295615&Projectid=P079675http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082510http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082510http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P082510


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Indias remarkable economic growth has been clouded by adegrading environment. The country is also very vulnerable toclimate change on account of its high levels of population density,

poverty, stressed ecological systems, and a substantial dependence

on natural resources of much of Indias population. The followingareas will thus require long-term vision and urgent action:

Protecting Indias fragile environment - air, water, forestsand bio-diversity - in the face of the rising pressures created

by economic success Adapting to climate change and the growing scarcity of water Coping with accelerating urbanization through strengthened

urban governance and environmental management Improving energy efficiency and ensuring adequate energy

supplies

The World Bank is in the process of articulating a vision for anenvironmentally sustainable future for India (India 2030), and has

projects in the pipeline to support the National Ganga River BasinAuthority and industrial pollution management. Support to thesector includes:

DATA COLLECTION

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Primary Data:

Gathered information by asking different groups of people abouttheir views on Global aid brings substantial change.

Secondary Data:

Secondary data is one which already exists and is collected fromthe published sources.

The sources from which secondary data was collected are :

1. Internet

2. Newspapers and Magazines

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DISCUSSION

DEVELOPMENT AID

Development aid or development cooperation (also developmentassistance, technical assistance, international aid, overseas aid,Official Development Assistance (ODA) or foreign aid) is aidgiven by governments and other agencies to support the economic,environmental, social and political development ofdevelopingcountries. It is distinguished from humanitarian aid by focusing onalleviating poverty in the long term, rather than a short termresponse. The term development cooperation, which is used, for

example, by the World Health Organization (WHO is used toexpress the idea that apartnership should exist between donor andrecipient, rather than the traditional situation in which therelationship was dominated by the wealth and specializedknowledge of one side. Most development aid comes from theWestern industrialized countries but some poorer countries alsocontribute aid. Aid may be bilateral: given from one countrydirectly to another; or it may be multilateral: given by the donor

country to an international organization such as the World Bankorthe United Nations Agencies (UNDP, UNICEF, UNAIDS, etc.)which then distributes it among the developing countries. The

proportion is currently about 70% bilateral 30% multilateral.

About 80-85% of developmental aid comes from governmentsources as official development assistance (ODA). The remaining15-20% comes from private organizations such as "Non-governmental organizations" (NGOs), foundations and other

development charities (e.g. Oxfam). In addition, remittancesreceived from migrants working or living in Diaspora form asignificant amount of international transfer.

Some governments also include military assistance in the notion"foreign aid", although manyNGOs tend to disapprove of this.

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http://en.wikipedia.org/wiki/Aidhttp://en.wikipedia.org/wiki/International_developmenthttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Humanitarian_aidhttp://en.wikipedia.org/wiki/World_Health_Organisationhttp://en.wikipedia.org/wiki/International_development#partnershiphttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Non-governmental_organisationhttp://en.wikipedia.org/wiki/Non-governmental_organisationhttp://en.wikipedia.org/wiki/Development_charitieshttp://en.wikipedia.org/wiki/Oxfamhttp://en.wikipedia.org/wiki/NGOhttp://en.wikipedia.org/wiki/Aidhttp://en.wikipedia.org/wiki/International_developmenthttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Humanitarian_aidhttp://en.wikipedia.org/wiki/World_Health_Organisationhttp://en.wikipedia.org/wiki/International_development#partnershiphttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Non-governmental_organisationhttp://en.wikipedia.org/wiki/Non-governmental_organisationhttp://en.wikipedia.org/wiki/Development_charitieshttp://en.wikipedia.org/wiki/Oxfamhttp://en.wikipedia.org/wiki/NGO


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Private consulting firms, such as PricewaterhouseCoopers andDeloitte, are increasingly being contracted by donor agencies to

manage and implement elements of their aid program, due to theirperceived ability to perform higher quality program managementand delivery.

Official Development Assistance is a measure of government-contributed aid, compiled by the Development AssistanceCommittee of the Organization for Economic Co-operation andDevelopment (OECD) since 1969. The DAC consists of 22 of thelargest aid-donating countries.

Development aid is aid given by developed countries to supportdevelopment in general which can be economic development orsocial development in developing countries. It is distinguishedfrom humanitarian aid as being aimed at alleviating poverty in thelong term, rather than alleviating suffering in the short term.

Official Development Assistance (ODA), mentioned above, is a

commonly used measure of developmental aid. Development aid isgiven by governments through individual countries' internationalaid agencies and through multilateral institutions such as the WorldBank, and by individuals through development charities such asAction Aid, Caritas, Care International orOxfam.

The offer to give development aid has to be understood in thecontext of the Cold War. The speech in which Harry Trumanannounced the foundation ofNATO is also a fundamental

document of development policy:

In addition, we will provide military advice and equipment to freenations which will cooperate with us in the maintenance of peaceand security. Fourth, we must embark on a bold new program formaking the benefits of our scientific advances and industrial

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http://en.wikipedia.org/wiki/Official_Development_Assistancehttp://en.wikipedia.org/wiki/Development_Assistance_Committeehttp://en.wikipedia.org/wiki/Development_Assistance_Committeehttp://en.wikipedia.org/wiki/Organisation_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Organisation_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Humanitarian_aidhttp://en.wikipedia.org/wiki/Official_Development_Assistancehttp://en.wikipedia.org/wiki/International_aid_agencieshttp://en.wikipedia.org/wiki/International_aid_agencieshttp://en.wikipedia.org/wiki/Multilateralhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Category:Development_charitieshttp://en.wikipedia.org/wiki/ActionAidhttp://en.wikipedia.org/wiki/Caritas_internationalishttp://en.wikipedia.org/wiki/CARE_(relief_agency)http://en.wikipedia.org/wiki/Oxfamhttp://en.wikipedia.org/wiki/Cold_Warhttp://en.wikipedia.org/wiki/Harry_Trumanhttp://en.wikipedia.org/wiki/NATOhttp://en.wikipedia.org/wiki/Official_Development_Assistancehttp://en.wikipedia.org/wiki/Development_Assistance_Committeehttp://en.wikipedia.org/wiki/Development_Assistance_Committeehttp://en.wikipedia.org/wiki/Organisation_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Organisation_for_Economic_Co-operation_and_Developmenthttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Humanitarian_aidhttp://en.wikipedia.org/wiki/Official_Development_Assistancehttp://en.wikipedia.org/wiki/International_aid_agencieshttp://en.wikipedia.org/wiki/International_aid_agencieshttp://en.wikipedia.org/wiki/Multilateralhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Category:Development_charitieshttp://en.wikipedia.org/wiki/ActionAidhttp://en.wikipedia.org/wiki/Caritas_internationalishttp://en.wikipedia.org/wiki/CARE_(relief_agency)http://en.wikipedia.org/wiki/Oxfamhttp://en.wikipedia.org/wiki/Cold_Warhttp://en.wikipedia.org/wiki/Harry_Trumanhttp://en.wikipedia.org/wiki/NATO


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progress available for the improvement and growth ofunderdeveloped areas. More than half the people of the world areliving in conditions approaching misery. Their food is inadequate.They are victims of disease. Their economic life is primitive and

stagnant. Their poverty is a handicap and a threat both to them andto more prosperous areas. For the first time in history, humanity

possesses the knowledge and skill to relieve the suffering of thesepeople.

Foreign aid can be simply defined as donations of money, goods,or services from one country assisting another country. Currentlywestern countries are developing and increasing in the past decade,

when it comes to foreign aid. But we are not supposed to just giveAfrican money and food but rather offering opportunities forAfrican students to have an ambition. The goal is to create morechances for African people to accept higher education and also isan effective way to save Africans from suffering from poverty.There is a program called Five College African ScholarsProgram. This program is basically dedicated to support theresearch of individual researchers in Africa, strengthening

partnerships and companionships among scholars in Africa and the

United States, and augmenting the study of Africa. Talking aboutthe program each scholar will receive a payment of 1,000 dollars amonth as a salary base. Also other goods such as airfare fee, laptopcomputers, housing, health insurance, library privileges, an office,and a modest research allowance are all subjected to US tax. Therequirements to apply to Five College Africans ScholarsProgram is only offered to people who must be a citizen of anAfrican nation, employed full-time at an African university that

offers a bachelor, a master or a PHD degree, and there is a limit tothe age of 49. There are also limits of accepting people; these referto the people who hold such as graduate assistants, tutorialassistants and non teaching researchers.

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OFFICIAL DEVELOPMENTAL ASSISTANCE

Most Official Development Assistance (ODA) came from the 23members of the Development Assistance Committee (DAC), orabout USD 103.49 billion in 2007. A further USD 11.8 billioncame from the European Commission while all non-DAC countriesgave USD 5.56 billion.

The largest DAC donors were the United States (USD 21.8billion), Germany ($12.29 billion), France ($9.88 billion), UnitedKingdom ($9.85 billion) and Japan ($7.68 billion), while the

largest non-DAC donors were Saudi Arabia (USD 2 billion) andTurkey ($0.6 billion). However, none of those met the UN target ofgiving at least 0.7 percent of the Gross National Income (GNI) asaid. United States (0.16% of GNI) and Japan (0.17% of GNI) werein fact giving least among the members of DAC. The onlycountries meeting the targets in 2007 wereNorway (0.96% ofGNI), Sweden (0.93% of GNI), Luxembourg (0.91% of GNI), the

Netherlands and Denmark(both 0.81% of GNI).

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http://en.wikipedia.org/wiki/Development_Assistance_Committeehttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Gross_National_Incomehttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/Development_Assistance_Committeehttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Gross_National_Incomehttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Denmark


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SPECIFIC TYPES

Project aid: Aid is given for a specific purpose e.g. buildingmaterials for a new school.

Programmed aid: Aid is given for a specific sector e.g. funding ofthe education sector of a country.

Budget support: A form of Programmed Aid that is directlychanneled into the financial system of the recipient country.

Sector-wide Approaches (SWAPs): A combination of Project aidand Programmed aid/Budget Support e.g. support for the educationsector in a country will include both funding of education projects(like school buildings) and provide funds to maintain them (likeschool books).

Food aid: Food is given to countries in urgent need of foodsupplies, especially if they have just experienced a natural disaster.Food aid can be provided by importing food from the donor,

buying food locally, or providing cash.

Untied Aid: The country receiving the aid can spend the money asthey choose.

Tied aid: The aid must be used to purchase products from thecountry that donated it or a specified group of countries.

Technical assistance: Educated personnel, such as doctors are

moved into developing countries to assist with a program ofdevelopment. Can be both programmed and project aid

Bilateral vs. Multilateral: bilateral aid is given by one countrydirectly to another; multilateral aid is given through theintermediacy of an international organization, such as the World

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Bank, which pools donations from several countries' governmentsand then distributes them to the recipients.

PRIVATE AID

Development charities make up a vast web of organizations,religious ministries, foundations, business donations and collegescholarships devoted to development aid. Estimates vary, but

private aid is at least as large as ODA within the United States, at$16 billion in 2003. World figures for private aid are not welltracked, so cross-country comparisons are not easily possible,though it does seem that per person, some other countries may givemore, or have similar incentives that the US has for its citizens toencourage giving.

REMITTANCES

It is doubtful whetherremittances, money sent home by foreignworkers, ought to be considered a form of development aid.However, they appear to constitute a large proportion of the flowsof money between developed and developing countries, althoughthe exact amounts are uncertain because remittances are poorlytracked. World Bankestimates for remittance flows to developingcountries in 2004 totaled $122 billion; however, this number isexpected to change upwards in the next few years as the formulasused to calculate remittance flows are modified. The exact natureand effects of remittance money remain contested; however in atleast 36 of the 153 countries tracked remittance sums were second

only to FDI and outnumbered both public and private aid

Nep Report 2

Documents

Transcript of Nep Report 2