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Southern Voices for Change in the International Aid System Project

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Report of Panel discussion on Moving Out of Aid Dependency

Source: UNDESA

The panel discussion “Moving Out of Aid Dependency” was a special event of the Second Committee organized by the Financing for Development Office on November 16, 2007 at the United Nation’s Headquarters intended to provide inputs to the on-going policy discussions at the United Nations on the road to Doha in 2008 and look at a critical issue – How does an aid dependent country move out of aid dependency in the long-run? By addressing key issues in the context of the development paradigm needed for a country to move out of aid dependency, governments will be better able to map out a long-term development plan and donors can map out a delivery mechanism to align aid to this development plan. Financial aid flows to developing countries represent important resources to improve socio-economic conditions. Given the multiple needs and the limited resources it is key for donor and recipient countries to make the most efficient possible use of aid, but at the same time the aid given should not prevent the creation of economic conditions so that the recipient countries eventually become less dependant of aid, and rely on its indigenous resources in the long run. The panel benefited from the rich intellectual blend and points of view of the speakers; distinguished economists, heads of non-governmental organizations, diplomats, and policy makers sat at the table to share their knowledge on aid dependency and the most effective way for developing countries to reduce such status. The panel was chaired by Mr. Peter Le Roux (South Africa) vice-chair of the second Committee. The speakers were Mr. Poul Engberg-Pedersen, Director General, Norwegian Agency for Development Cooperation; Mr. Roy Culpepper, President, North-South Institute, Ottawa, Canada; Ms. Irma Adelman, Professor, Berkeley University, California; Mr. Michael Atingi Ego, Executive Director, Bank of Uganda, Uganda; and H.E. Mr. Debpriya Bhattacharya, Ambassador and Permanent Representative of Bangladesh to the United Nations at Geneva. Benu Schneider, Chief of International Finance, Debt and Systemic Issues Unit Financing for Development, Department for Economic and Social Affairs was the discussant.

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