Tracking Non- financial aid flows more effectively BY KELLY HUNTE

Aid Flows Aid is an important piece of the economic growth block in many developing countries

Financial V.S. Non Financial  There are two types of aid  Financial  Monetary grants  Debt relief  Concessional loans  Non- Financial (Technical Cooperation/ Technical Assistance)  Any assistance which strengthens the individual or organisational capacity through the provision of expertise  the provision of training and related learning opportunities  The provision of equipment, vehicles, computer hard ware or software, and training materials

Fragmented Aid Picture  The OECD database which captures financial aid data is very comprehensive and is a great tool for researchers, analyst and policy makers to monitor and analyses these flows and there impacts  But what about the OECD’s non financial aid flow database? The categories are as follows:  Costs of donor experts  Experts  Other technical assistance  Donor personnel  Other technical assistance  Scholarships  Student costs; and  Free standing technical cooperation

Fragmented Aid Picture

Global non financial aid flow target met?

Improving the effectiveness of tracking non-financial aid flows  Economic Accounting can be used to cost and non financial aid flows Cost CategoriesTotal CostSchoolCentral Government Donor Organization European Union Public Wages and salaries 195,000 Benefits 60,000 Overhead costs 23,500 Total Personnel 278,500 Course materials 55,000 50,000 5,000 Equipment 20,000 16,000 4,000 Deadweight loss from taxation 5,000 5,000 Total program cost 358,500

Non financial aid flows: Too difficult to Track?  The findings from this research paper seek to provide a basic analysis of how non financial aid flows can be captured, monitored and analysed  The limitations of the paper are as follows:  In-depth analysis could not be carried out due to data limitations  Proxies were used for costings  Limited Analysis (covers 47 ministries, departments and no information was received from the statutory boards)  Non-financial flows are underestimated  Donor responses to the collection matrix was omitted  More up to date data could have been used  The study only focused on analysing training programs which were funded

Results from the Barbados case study  Barbados does not attract high levels of Official Development Assistance (ODA) because we are classified as a high middle income country  The sectors of national priority  Tourism  International Business  The Green Economy  The provision of high quality social services; and  Poverty reduction

Aid flows to Barbados  Barbados has received financial and non financial aid to assist in the achievement of its national priorities  Barbados received approximately US$4.1 million in financial aid at the end of 2010.

Aid Flows to Barbados  Total non financial aid flows were approximately US$1.4 million (this figure was rounded up)  Approximately US$803,325 in non financial flows was received (in the form of donations of photovoltaic systems, energy saving bulbs, laptops etc)  Barbados received approximately US$577,707 (only represents training flows and promotional activities received) over

Are non financial flows effectively linked to Barbados’ National Priorities?

 Barbados received US$145,000 in promotional material and services to assist in the roll out of a public awareness campaign to highlight the advantages of renewable energy.  Non-financial aid flows to provide training in poverty reduction was US$35,000  The donors provided US$11,520 in training for tourism policy and planning  US$19,200 was targeted towards training in Renewable Energy integration

Way Forward  A standardized accounting template needs to be developed and used by both donor and recipient countries that would effectively capture non financial aid flows.  Aid flow databases should be developed in all countries and made available on the internet  The data collect from this template should be fed into the OECD global database. The structure of the OECD non-financial aid flow database may need to be changed.  Analysis on all TC programs must be carried out to see whether the data validates or disproves the claims of the donor community  In- depth analysis of the effects of non financial flows on the economy can be undertaken once a comprehensive dataset is developed  The data collected from the aid database should led to the development of aid strategies that are more effective.  Greater ownership is needed by receiving countries

Thank You!!!

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