The best way for international donors to quicken development in poor Asian countries is to maximize overseas developmental assistance. ODA should be provided both to governments directly and to international and local NGOs. ” Development can be considered as one of the most omnipresent concepts today. This term had been a commonplace in governments and non-governmental organizations alike (Nault, 2008). Overseas developmental assistance also referred to as official overseas assistance (ODA), had been a vital part of world economies especially to those who belong to the third world.
As early as 1960s, underdeveloped and developing countries have seen the importance of receiving grants in forms of ODA from more developed countries (Berlage and Stokke, 1992) It is now given that most of the countries, which are underdeveloped, or those who are still in the process of developing are indeed in great need of ODAs coming from their more developed counterparts. The lack of resources on the part of the poor countries makes them suffer the opportunity cost of not attending to other pressing issues in within their territories.
This paper will present arguments in two fold. First, it will make a point on how international donors can quicken development in poor Asian countries by maximizing the amount it gives through ODAs. Second, it will argue on why is there a necessity to give funds directly to international and local NGOs rather than just giving it to the government; it having the sole discretion on the funds’ disbursement. Similar to the case in developed countries, rising and relentless budget deficits had become one of the major causes for concern in developing countries.
Asian countries have been suffering from massive budget deficits for the past recent years (Gupta, 1992). Given that most of the developing and underdeveloped countries are suffering from budget deficit, there really is a need that ODAs should be intensified in order to address other social concerns that are being neglected by the governments due to lack of budget. These social concerns, which deals with welfare and other public issues are often taken for granted by governments despite their noble ideas because they lack resources in financing these programs.
If resources will be provided through ODA, the local government will be better equipped of bringing service to their people. Aside from mere economic progress, development must also entail improvements with regard to life expectancy, education levels, literacy, and access to resources (Nault, 2008). With more funds, which are easily available to finance social programs of the government, people may easily reap the benefits of ODAs coming from developed countries. The funds coming from the ODA can be allocated to programs aimed at empowering the grassroots and improving the living conditions of the people.
With regard to economic progress, there is also a great need for the funds, which are given by more developed countries. Given the lack of resources of underdeveloped countries, they have no enough assets to stimulate their respective economies. Nowadays, government-initiated economic policies are necessary to save the worsening condition of the global economy. The world economy is being threatened by massive recessions. Hence, there is a necessity for state intervention in stimulating the economy. ODAs can be used by the government to back up state-initiated economic programs aimed at ameliorating the country’s economy.
ODAs may be used as capital by the government and also as investment so that it would yield to higher profits in the future. ODAs can also be used by the government in coming up with schemes that will help protect the economy from the global trend of economic downturns by implementing regulations, which will somehow put safety nets to the national economy. ODAs may be used in employment training and job creation in order to assure that the citizens of the country are equipped with appropriate knowledge, which they may use in finding employment.
Having established the necessity of increasing the amount of ODAs being transferred by developed countries to their poorer and less fortunate counterparts of Asia, the argumentation will shift towards the necessity of diverting funds not only to state governments but to non-governmental organizations as well. First, the author of this paper acknowledges the vital role being played by the government with regard to managing ODAs. Much substance have been given earlier in this paper and it is beyond argumentation that state-government acceptance of ODAs is indeed necessary.
However, a new concept is being realized and offered which relates to the offering of ODAs from developed nations directly to international and local NGOs in the country. Perhaps one of the reasons to such proposition is the lessening trust of developed nations to their underdeveloped counterparts in Asia when it comes with governance. Many Asian countries, especially those who are financially-burdened, are often described in the international arena as engaging in the process of corruption.
Documented evidence is being studied to support such claim (Lindsey and Dick, 2002). Good governance within the public sphere is indeed crucial in creating an environment, which will help mobilize resources, both domestically and internationally as well (Organization for Economic Co-operation and Development, 2002). Grantors of ODAs take into consideration the political climate within the country, which will receive their grant. They give premium to those who are practicing good governance. However, most countries in Asia had been involved in cases related to corruption.
Hence, they do not appear as flawless to those who are sending them their ODAs. On the other hand, NGOs send a message of altruism to the international community. These NGOs project an image that they are indeed concerned in bringing progress to the countries where they have offices in. They appear as the good guys, whose business is to promote the welfare of the oppressed. NGOs are also offering programs that are aimed at bringing progress and development to their host countries. Sometimes, such programs from the NGOs are not being offered by state-governments.
Another point is the fact that since grantors of aids are losing trust to corrupt governments, they are finding alternative channels to send their ODAs to residents of the receiving countries. Most NGOs in the international levels have earned themselves of the reputation to help others due to their noble causes. In spite of the manner as to how developed countries will be sending in their grants, what matters most is the fact that these grants are indeed helpful in bring progress and development to underdeveloped countries. References Berlage L. and Stokke, O. (1992). Evaluating Development Assistance: Approaches and Method.
London: Routledge Publishing. Gupta, K. L. (1992). Budget Deficits and Economic Activity in Asia. London, Routledge Publishing. Lindsey, T. and Dick, H. W. (2002). Corruption in Asia: rethinking the governance paradigm. Annandale: NSW Federation Press. Nault D. M. (2008). Development in Asia: Interdisciplinary, Post-Neoliberal, and Transnational Perspectives. Boca Raton: Brown Walker Press. Organization for Economic Co-operation and Development (2002). Official development assistance and private finance: attracting finance and investment to developing countries. Paris: OECD Publishing.