Regulating Foreign Aid through Act – Effects and Implications for China Tongquan Sun Taidong Zhou Rural Development Institute, Chinese Academy of Social Sciences February , ANU

Contents A.Research context B.Cases selected C.Definitions of foreign aid regulation D.Who regulating foreign aid with acts E.Why having foreign aid acts F.Effects of regulating foreign aid with acts G.Foreign aid regulation in China H.Implications to China

Research Context Challenges to Foreign Aid Administration in China:  Rapid growth of aid volume  Normalization of aid administration  Rule of law  Transparency and accountability

Cases Studied Australia Japan South Korea United Kingdom United States

Foreign Aid Regulation Policy papers –Policy statements –Regional or country development cooperation planning documents

Foreign Aid Regulation Acts –Basic law –Organizational law –Administrative rules and/or decrees –International treaties / bilateral & multilateral development cooperation agreements –Other related regulations: procurement, budgeting, auditing, etc.

Who Regulating ODA with Acts Who have basic law of foreign aid –USA –UK –South Korea –Japan Who has no basic law of foreign aid –Australia

Why Having a Foreign Aid Act Major factors: –political system –legal traditions –international and domestic context –realistic needs / regulatory impacts analysis

Effects of Regulating Foreign Aid with Acts Fundamental norms of foreign aid administration –Purposes, goals, principles, target recipients, sectors, strategies, etc. Strengthened Coordination between departments –clarified and regulated functions and roles of related departments, operational procedures etc.in some countries.

The Effects of Regulation Transparency Accountability Aid effectiveness (?) –Relevance –Efficiency

Foreign Aid Regulation in China Policy –Policy statements government leaders’ statement white paper –Government decisions and guidelines

Foreign Aid Regulation in China Acts –Departmental administrative measures and management rules Funds management, goods and materials inspection, project quality examination, qualification of project contractor, volunteer management, etc. –Other related laws Budgeting act, governmental procurement act, auditing act, etc.

Implication to China Foreign aid rules –As a basic law Foreign aid coordination committee –Higher than the Inter-agency Coordination Mechanism A supervising committee in the NPC Planning and evaluation system Transparency Linking up with international soft law

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