The Development Aid Business

There is an unprecedented resolve on the continent to turn away from the begging bowl and engage in new efforts to build a better life. Thabo Mbeki Development aid cannot continue indefinitely. The task is therefore to use limited resources as effectively as possible. This can only work through good governance which taps that country's economic potential. Angela Merkal, German Chancellor at the High Level Plenary Meeting of the UN General Assembly on the Millennium Development Goals 21 st September 2010

Total ODA and ODA in Africa

The Aid Business ODA budget - US$ 140 billion (2010) > 100,000 – 10,000 employees If Aid were a business it would rank 19 th in the world by turnover on a par with Allianz In terms of employees Aid employs the same number of people as GlaxoSmithKline

MAJOR ODA DONORS 6

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8 8 At sector level: Procurement chain of donors in health in Kenya

9 … may create coordination problems!

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Demand for aid

Confronting the challenges of financing for development : a global response

Ownership: Countries have more say over their development processes through wider participation in development policy formulation, stronger leadership on aid co-ordination and more use of country systems for aid delivery. Inclusive partnerships: All partners - including donors in the OECD Development Assistance Committee and developing countries, as well as other donors, foundations and civil society - participate fully. Delivering results: Aid is focused on real and measurable impact on development. Capacity development - to build the ability of countries to manage their own future - also lies at the heart of the AAA. Capacity development - to build the ability of countries to manage their own future - also lies at the heart of the AAA.

Africa's share of global FDI projects (in %)

Barriers to investing in Africa

1. Mission Creep

2. Exit Strategy

3. Symbiotic Relationship