Portal:Development aid/Policy practices compared
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Policy practice of the World Bank
The World Bank was originally established to support reconstruction in Europe after World War II, but has since reframed its mission and expanded its operations both geographically and substantively.
Today,the mission of the World Bank is to reduce poverty.World Bank
•Policy practice in Latin America
Since 1992, the Bank Information Cente(BIC) has worked with communities affected by the policies and projects of multilateral development banks in Latin America. Along with the World Bank and several other institutions, the Inter-American Development Bank (IDB) has long been a focus of the Bank Information Center’s monitoring activities.Latin America
- The UK Secretary of State for International Development Hilary Benn announced his government’s intention to provide the funds to Africa Partnership Forum in London.The Fund is a new financing mechanism proposed by the Africa Action Plan, recently endorsed by the Development Committee of the Governors of the World Bank Group. It will focus on helping African countries that can make good use of additional aid or which have recently emerged from post conflict situations reach some of the Millennium Development Goals—such as reducing child mortality, combating diseases such as malaria and HIV/AIDS, and ensuring that all children are in school. The Fund will also provide resources for regional integration projects that can generate growth and contribute significantly to reducing poverty.[1],
Policy practice of the United Nations
•The U.N. provides assistance to most countries in Africa, and USAID operates 23 bilateral missions on the continent. Three regional missions support activities in countries with a limited USAID presence and manage programs that strengthen institutional capacity to contribute to stable and secure development in Africa.[2] The Un has been active in humanitarian activities in most Africa countries, for example they have been granting support and subsidies to NGO'S like mission agency which is dedicated to the establishment of Christ-centered churches among all of Africa’s peoples, AIM has the opportunity - and the responsibility - to respond to humanitarian needs that arise in the countries where they serve.[3]
Policy practice of the IMF
Changes in Lending Funds
To make its financial support more flexible and modified to the multiplicity of low-income countries. The IMF has began a new Poverty Reduction and Growth Trust (PRGT) which has three new methods of lending funds. These new methods of lending funds are expected to become effective in 2009 when the final consent of donor countries are given. The three new methods will be as follows:
- The Extended Credit Facility (ECF) which:
- Provide sustained engagement in case of medium term balance of payments needs
- Offers more flexible timing requirements then the PRGF for countries to produce a formal poverty reduction strategy document
- The Stand by Credit Facility (SCF)which:
-Provide flexible support to low-income countries with short financing and adjustment needs caused by domestic or external shocks op policy slippages
-Can also be used on a precautionary basis to provide insurance
- The Rapid Credit Facility (SCF) which:
-Provides limited financial support in a single, up front payout for low income countries facing urgent needs
-Offers highly flexible financing that provides single-use loan that replace the Exogenous Shock's Facility's rapid access component and the subsidized Emergency Natural Disaster Assistance; and offers successive drawings for countries in post conflict of other fragile situations, replacing and expanding subsidized Emergency Post Conflict Assistance
For further reading see IMF changes in lending funds
How does the IMF help countries make progress towards the MDGs?
There are many ways in which the IMF helps poor countries achieve the sustained high levels of growth that establish the basis for poverty reduction—including through policy advice, technical assistance, financial support and debt relief. It also tries to ensure that developed countries' policies are supportive of low-income countries' development efforts, by advocating for increased foreign aid, the opening of markets to developing countries' exports, and the maintenance of a healthy enabling international economic climate.How the IMF Helps Poor Countries
Policy practice of the European Union
More than half the funds spent to aid low-come countries is made available by the European Union and its member states, making them the worlds largest aid donor. The European Union not only provides clean water and surfaced roads which are necessary but also provides the important of trade among the developing countries. They assist by helping developing countries export their goods to the union and also help them to trade more among themselves to become more independent.
The main objective of the European Union's development policy is to eliminate poverty in a justifiable way. The Millennium Development Goals (MDGs)are significant to the policy. The eight MDGs were adopted by world leaders in 2000 with a 2015 deadline and range from halving extreme poverty and halting the spread of HIV/AIDS, to providing universal primary education.
EU partnerships and dialogue with developing countries promote respect for human rights, fundamental freedoms, peace, democracy, good governance, and gender equality, the rule of law, solidarity and justice. European Community's contribution is focused in certain areas of intervention,responding to the needs of partner countries.
As the world's largest donor of official development assistance, the EU has, in the last years been strongly committed to improve aid effectiveness. The adoption of an ambitious Paris Declaration on Aid Effectiveness in 2005 was due, in no small measure, to the strong input provided by the EU.
Policy Coherence for Development plays a central role in reinforcing the EU contribution to developing countries progress towards the Millennium Development Goals. The aim is to maximise the positive impact of these policies on partner countries and to correct incoherence.
Example policy of the EU towards Sudan
The EU is a strong supporter of Sudan, and works with the Government of National Unity in Khartoum (as well as the Government of Southern Sudan in Juba) in support of Sudanese development. The immediate priority has been to provide much-needed post-conflict support. Following the civil war, aid is needed for recovery and rehabilitation across the South and the war-affected areas. The Comprehensive Peace Agreement provides for a range of governance reforms which should help prevent further conflict, and the European Commission is keen to support these too.
Following signature of the Agreement, particular attention has been paid to ensuring the security of food supplies across the country; malnutrition affects a large proportion of the population. In order to help raise living standards in general and to meet the MDG targets, the European Commission is working hand in hand with the authorities to implement comprehensive rural development policies.
Education is another key area of support. Adult literacy rates are quite low and less than half of Sudanese children are enrolled in primary school. Improved education is necessary for continued economic growth and to achieve a sustainable shift away from the subsistence economy.
The European Commission Humanitarian Office will continue to provide humanitarian assistance in Darfur as long as needs persist. The EU supports efforts to achieve a peaceful resolution of the conflict, and stands ready to provide a package of development assistance for the Darfur region to support a peace settlement.
For further reading on different policies see: Paris Declaration on Aid Effectiveness, Development policies of the EU, Development and relations with African, Caribbean, and Pacific States
