Governance of Development Assistance: Issues and Challenges

Published date01 June 2017
AuthorNavreet Kaur,Lhoukhokai Sitlhou
Date01 June 2017
Subject MatterArticles
Indian Journal of Public
63(2) 252–264
© 2017 IIPA
SAGE Publications
DOI: 10.1177/0019556117699731
1 Assistant Professor, Department of Public Administration, Panjab University, Chandigarh, India.
Corresponding author:
Navreet Kaur, Assistant Professor, Department of Public Administration, Arts Block 3, Panjab
University, Chandigarh, India.
Governance of
Development Assistance:
Issues and Challenges
Navreet Kaur1
Lhoukhokai Sitlhou1
Good governance emphasises upon efficient and effective institutional mecha-
nism, greater transparency, people’s participation, citizen-centric services and
accountability. These reforms are not only limited to national governance
practices but also applicable to distribution, disbursement and effectiveness of
development assistance. The objective of development assistance is to provide
opportunities to needy, deprived and disadvantageous sections of the society.
The available data on development assistance clearly demonstrate that rich
countries, Development Assistance Countries (DACs) provide financial assis-
tance to poor countries and it has reached US$100 billion in recent years. Non-
DAC bilateral assistance (NDBA) is more than US$8 billion in Office of Disaster
Assistance (ODA) and US$5 billion annually in country programmable aid (CPA).
Private aid (PrA) from DAC members contribute between US$58 billion and
68 billion per year. Total aid flows to developing countries currently amount to
around US$180 billion annually. Multilateral aid agencies (around 230) outnum-
ber donors and recipients combined. But the harsh reality is high percentage of
illiteracy, high child mortality, gender inequality, prevalence of corruption and
exclusion of needy people from the development process.
The examination of the process and procedures involved in development
process revealed that there are many challenges in the process adopted for
allocation, methodological limitations, evaluation limitation, lack of coordination
among multiple agencies, political compulsions of donor and recipient coun-
tries, transparency, accountability and multidimensional global financial markets
compulsions. Certain measures can make development more inclusive and
sustainable. Collective efforts of all agencies are the need of the hour to achieve
the targets of sustainable development. Coordination among multiple agencies,

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