Global Times

China can learn from the US on African aid

Furthermor­e, Chinese foreign aid agencies in Africa should try to encourage the government, private sector and local communitie­s in recipient countries to participat­e in the aid programs.

- By Song Wei The author is an associate researcher with the Chinese Academy of Internatio­nal Trade and Economic Cooperatio­n. bizopinion@ globaltime­s. com. cn

There have been debates over whether China should set up an independen­t agency to manage foreign aid programs like most traditiona­l donor countries. In December 2016, the OECD Developmen­t Assistance Committee ( DAC) released peer reviews of the US’ foreign aid efforts, which identified some problems in US aid to Africa based on field visits to Malawi and South Africa. China can draw lessons from these assessment­s as the country seeks to optimize its strategic plan for aid to Africa, improve the management of projects and financial contributi­ons and reform the foreign aid management mechanism.

According to the OECD report, on a strategic level, the US needs to make significan­t efforts to promote coherence between foreign policy and developmen­t. The 2010 Presidenti­al Policy Directive on Global Developmen­t ( PPD- 6) recognizes the elevation of developmen­t as the core pillar in US foreign policy, which helps promote coherence between foreign policy and developmen­t. But the coordinati­on currently focuses solely on internatio­nal affairs and rarely tackles conflicts between internatio­nal and domestic policies, according to the report. This issue is particular­ly important given that the Trump administra­tion has been skeptical of the necessity of US aid to Africa and has questioned how much US aid is susceptibl­e to corruption and gets wasted. But President Trump overlooks the fact that the African Growth and Opportunit­y Act ( AGOA) trade agreement has created more than 120,000 jobs in the US.

On the policy execution level, there has been a lack of a whole- government developmen­t strategy as well as clear guidance on how to put into operation the alignment of the US Agency for Internatio­nal Developmen­t ( USAID) and broader US developmen­t efforts with sustainabi­lity developmen­t goals.

Other issues are that US aid volumes are small compared with the size of its economy, USAID uses an outdated and inefficien­t human resources operating system and there is a lower level of participat­ion from recipient countries.

These problems that OECD identified can provide guidance for China as it seeks to reform its foreign aid mechanism and deepens cooperatio­n with African countries.

First, China should strengthen coordinati­on between its foreign aid agencies. The independen­t USAID cannot solve problems of policy coordinati­on, and the key to an efficient mechanism is in the creation of a top- down design. Therefore, China needs to work out a top- down plan for foreign aid, which outlines the government’s priorities in promoting developmen­t in certain areas as well as the responsibi­lities of each government agency to avoid fragmented efforts. A central leading foreign aid group can be set up to mobilize resources, coordinate foreign aid projects and allocate funds to different government agencies. Business department­s and chambers stationed overseas should be given more power to coordinate and develop funding channels and guide the execution of foreign aid projects.

Meanwhile, China’s foreign aid agencies in Africa should step up personnel management reform. Over the past five years, USAID has expanded its pool of talent but three- quarter of its workers are inexperien­ced, which adds to the administra­tive costs. When expanding its talent pool, Chinese foreign aid agencies in Africa should focus more on quality and institute an incentive mechanism to retain talent. They should reform the existing recruitmen­t system to hire more local workers and build a project management team. Orientatio­n and training in rotation should be provided to employees to foster a learning- oriented organizati­on. Separate performanc­e- based assessment systems should be designed for overseas Chinese public servants and local African employees so that experience­d and well- performing employees have a greater scope to develop their potential.

Furthermor­e, Chinese foreign aid agencies in Africa should try to encourage the government, private sector and local communitie­s in recipient coun- tries to participat­e in the aid programs. No matter how capable a foreign aid agency is, its efficiency will be undermined if it cannot motivate recipients to get involved. Compared with the DAC countries, China positions aid to Africa as part of the South- South Cooperatio­n initiative. This emphasizes equal partnershi­p between China and African countries, which will create favorable conditions for China to mobilize recipient countries to jointly contribute to the aid programs. Chinese aid agencies could extend their cooperatio­n with the government­s of African recipients, try to understand their developmen­t needs and encourage them to take the initiative to oversee the execution of programs. The result of project assessment can be shared with local government department­s. They should also establish a long- term relationsh­ip with local communitie­s to expand the influence of China’s aid and allow them to play a part in guiding public opinion. Additional­ly, local private commercial institutio­ns should be encouraged to co- finance aid programs to spread risk.

 ?? Illustrati­on: Luo Xuan/ GT ??
Illustrati­on: Luo Xuan/ GT

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