Reconsidering Development Aid: A Systemic Analysis

Gülseven, Yahya

doi:10.13169/worlrevipoliecon.11.2.0232

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World Review of Political Economy

Volume 11, Issue 2

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Reconsidering Development Aid: A Systemic Analysis

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research-article

Author(s): Yahya Gülseven

Publication date (Print): 1 July 2020

Journal: World Review of Political Economy

Publisher: Pluto Journals

Keywords: development aid, OECD-DAC, aid architecture, the Marshall Plan, proletarianization, global value chains

Abstract

In the political and academic debates on development aid in the post-Cold War years, there is often reference to a “new aid architecture.” This study explores what is new about this “new architecture of aid” and traces change and continuity by comparing the form and essence of aid architecture in the Cold War and the post-Cold War years. It discusses to what extent development aid can be interrogated within the inter-systemic competition during the Cold War period. After having located aid into a systemic framework, it seeks to understand the emergence of the “new aid architecture” in the post-Cold War years. To this end, it first analyses the relevance of aid to the hegemonic project that pursues the proletarianization of the world's poor. It then focuses on aid's role in transforming social and industrial relations to promote capitalist competitiveness at the global level. In this respect, it pays particular attention to “global value chains.” This study argues that “new aid architecture” is nothing more than an attempt to set a new framework for the role and contribution of aid in expanding and deepening the hegemony of capital over labor on a global scale in the absence of the Soviet factor.

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Journal

Journal ID (doi): 10.2307/j50005553

Journal ID (jcode): worlrevipoliecon

Title: World Review of Political Economy

Publisher: Pluto Journals

ISSN: 2042-891X

ISSN: 2042-8928

Publication date (Print): 1 July 2020

Volume: 11

Issue: 2 ( doiID: 10.13169/worlrevipoliecon.11.issue-2 )

Pages: 232-255

Article

Publisher ID: worlrevipoliecon.11.2.0232

DOI: 10.13169/worlrevipoliecon.11.2.0232

SO-VID: f4205ac9-9413-475d-9034-ced9899c4af0

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lang eng

ScienceOpen disciplines: Political economics

Keywords: development aid,global value chains,proletarianization,OECD-DAC,the Marshall Plan,aid architecture

References

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Aring, M., and C. Corbitt. 1996. “Best Practice Compass to Workforce Development: A Toolkit for Policymakers, Donors, Governments, NGOs and Practitioners.” The US Department of Education Institute of Education Sciences. Accessed May 5, 2018. https://eric.ed.gov/?id=ED461767.
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Black, L. D. 1968. The Strategy of Foreign Aid. Princeton: Van Nostrand.
BMZ. 1992. Sector Concept: Vocational Training. Bonn: BMZ.
Cammack, P. 2001. “Making the Poor Work for Globalisation?” New Political Economy 6 (3): 397–408.
Cammack, P. 2002a. “Attacking the Global Poor.” New Left Review 13 (2): 125–134.
Cammack, P. 2002b. “Making Poverty Work.” In Socialist Register: A World of Contradictions, edited by L. Panitch and C. Leys, 193–211. London: Merlin Press.
Cammack, P. 2004. “What the World Bank Means by Poverty Reduction, and Why It Matters.” New Political Economy 9 (2): 189–211.
Cammack, P. 2006. “Politics of Global Competitiveness.” Papers in the Politics of Global Competitiveness, vol. 1. Accessed October 4, 2016. https://ssrn.com/abstract=981846.
Cammack, P. 2009a. “Poverty Reduction and Universal Competitiveness.” Labour, Capital and Society 42 (1–2): 32–54.
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Cammack, P. 2010. “The Shape of Capitalism to Come.” Antipode 41 (1): 262–280.
Cammack, P. 2015. “What International Organisations Do, and Why They Do It.” Spectrum Journal of Global Studies 7 (1): 62–77.
Cammack, P. 2017. “Capitalist Development in the Twenty-First Century: States and Global Competitiveness.” In Asia after the Developmental State: Disembedding Autonomy, edited by T. Carroll and D. S. L. Jarvis, 124–147. Cambridge: Cambridge University Press.
Carew, A. 1987. Labour under the Marshall Plan: The Politics of Productivity and the Marketing of Management Science. Detroit, MI: Wayne State University Press.
Cox, R. W. 1987. Production, Power, and World Order: Social Forces in the Making of History. New York: Columbia University Press.
Cullather, N. 2010. The Hungry World: America's Cold War Battle against Poverty in Asia. Cambridge, MA: Harvard University Press.
De Long, J. B., and B. Eichengreen. 1991. “The Marshall Plan: History's Most Successful Structural Adjustment Programme.” NBER Working Paper No. 3899. https://www.nber.org/papers/w3899.
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DFID. 2000. Eliminating World Poverty: Making Globalisation Work for the Poor. London: HMSO.
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Gilman, N. 2003. Mandarins of the Future: Modernization Theory in Cold War America. Baltimore: Johns Hopkins University Press.
Hagen, J. M., and V. W. Ruttan. 1988. “Development Policy under Eisenhower and Kennedy.” Journal of Developing Areas 23 (1): 1–30.
Hardin, G. 1995. Living within Limits: Ecology, Economics, and Population Taboos. New York: Oxford University Press.
Harrison, G. 2007. The World Bank and Africa: The Construction of Governance States. London: Routledge.
Hobsbawm, E. J. 1995. Age of Extremes: The Short Twentieth Century 1914–1991. London: Abacus.
Hook, S. 1995. National Interest and Foreign Aid. Boulder, CO: Lynne Rienner.
Huntington, S. 1968. Political Order in Changing Societies. New Haven, CT: Yale University Press.
Johanson, R. K., and A. V. Adams. 2004. Skills Development in Sub-Saharan Africa. Washington, DC: World Bank.
Keohane, R. O. 1984. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press.
Kim, T., and D. Kim. 2017. Secrets of Hegemony. Singapore: Springer.
Kummritz, V., D. Taglioni, and D. Winkler. 2017. “Economic Upgrading through Global Value Chain Participation: Which Policies Increase the Value-Added Gains?” Policy Research Working Paper no. 8007, World Bank. Accessed January 5, 2018. https://openknowledge.worldbank.org/handle/10986/26348.
Lancaster, C. 2007. Foreign Aid: Diplomacy, Development, Domestic Politics. Chicago: University of Chicago Press.
Latham, M. E. 2006. “Redirecting the Revolution? The USA and the Failure of Nation-Building in South Vietnam.” Third World Quarterly 27 (1): 27–41.
LeBaron, G. 2014. “Time to Get Serious about Forced Labour in Supply Chains.” Open Democracy. Accessed March 5, 2018. https://www.opendemocracy.net/en/beyond-trafficking-and-slavery/time-to-get-serious-about-forced-labour-in-supply-chains.
LeBaron, G. 2016. “Slavery, Human Trafficking, and Forced Labour: Implications for International Development.” In The Palgrave Handbook of International Development, edited by J. Grugel and D. Hammett, 381–398. Basingstoke: Palgrave Macmillan.
Le Houérou, P., A. Nishio, and G. Tata. 2008. “Aid Architecture: An Overview of the Main Trends in Official Development Assistance Flows.” World Bank. Accessed May 5, 2018. http://documents1.worldbank.org/curated/en/688091468134712330/pdf/468540WP0Box331Architecture1 May2008.pdf.
Leland, S. 1998. Investing in Tomorrow's Workforce. Newton, MA: Center for Workforce Development at Education Development Center.
Masciulli, J., and M. A. Molchanov. 2012. “Hegemonic Power.” In Encyclopedia of Global Studies, vol. 2, edited by H. K. Anheier and M. Juergensmeyer, 787–790. Los Angeles: Sage Reference.
Mayer, C. 2001. “Transfer of Concepts and Practices of Vocational Education and Training from the Center to the Peripheries: The Case of Germany.” Journal of Education and Work 14 (2): 189–208.
Morgenthau, H. 1962. “A Political Theory of Foreign Aid.” American Political Science Review 56 (2): 301–309.
Morton, A. D. 2007. Unravelling Gramsci: Hegemony and Passive Revolution in the Global Political Economy. London: Pluto Press.
Moyo, D. 2009. Dead Aid: Why Aid Is Not Working and How There Is Another Way for Africa. London: Penguin.
Murphy, C. N. 1994. International Organisation and Industrial Change: Global Governance since 1850. Cambridge: Polity Press.
Neilson, J. 2013. “Value Chains, Neoliberalism and Development Practice: The Indonesian Experience.” Review of International Political Economy 21 (1): 38–69.
Newman, S. 2012. “Global Commodity Chains and Global Value Chains.” In The Elgar Companion to Marxist Economics, edited by B. Fine, A. Saad-Filho, and M. Boffo, 155–161. Cheltenham, UK: Edward Elgar Publishing.
OECD. 1989. Development Cooperation in the 1990s: Policy Declaration by DAC Ministers and Heads of Agencies. Paris: OECD.
OECD. 1994. The OECD Jobs Strategy. Paris: OECD.
OECD. 2009a. Promoting Pro-Poor Growth: Employment. Paris: OECD.
OECD. 2009b. Development Assistance Committee Reflection Exercise: Investing in Development—A Common Cause in a Changing World. Paris: OECD.
OECD. 2013. Interconnected Economies: Benefiting from Global Value Chains. Paris: OECD.
OECD. 2017. OECD Skills Outlook 2017: Skills and Global Value Chains. Paris: OECD.
Packenham, R. A. 1966. “Foreign Aid and the National Interest.” Midwest Journal of Political Science 10 (2): 214–221.
Quentin, D., and L. Campling. 2018. “Global Inequality Chains: Integrating Mechanisms of Value Distribution into Analyses of Global Production.” Global Networks 18 (1): 33–56.
Rostow, W. W. 1960. The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press.
Rupert, M. 1995. Producing Hegemony: The Politics of Mass Production and American Global Power. Cambridge: Cambridge University Press.
Saull, R. 2007. The Cold War and After: Capitalism, Revolution and Superpower Politics. London: Pluto Press.
Saull, R. 2012a. “American Foreign Policy during the Cold War.” In US Foreign Policy, edited by M. Cox and D. Stokes, 59–81. New York: Oxford University Press.
Saull, R. 2012b. “Rethinking Hegemony: Uneven Development, Historical Blocs, and the World Economic Crisis.” International Studies Quarterly 56 (2): 323–338.
Selwyn, B. 2015. “Harsh Labour: Bedrock of Global Capitalism.” Open Democracy. Accessed April 8, 2018. https://www.opendemocracy.net/beyondslavery/benjamin-selwyn/harsh-labour-bedrock-of-global-capitalism.
Selwyn, B. 2016. “Rethinking Recovery: Poverty Chains and Global Capitalism.” Open Democracy. Accessed May 27, 2018. https://www.opendemocracy.net/en/beyond-trafficking-and-slavery/rethinking-recovery-poverty-chains-and-global-capitalism.
Selwyn, B. 2017. The Struggle for Development. Cambridge: Polity Press.
Solheim, E. 2013. “Connecting to Value Chains: The Role of Aid for Trade in Private Sector Development.” ECDPM Great Insights. Accessed June 5, 2018. http://ecdpm.org/great-insights/aid-for-trade/connecting-value-chains-role-aid-trade-private-sector-development/.
Spear, J. 2016. “The Militarisation of United States Foreign Aid.” In The Securitisation of Foreign Aid: Rethinking International, edited by S. Brown and J. Grävingholt, 18–41. London: Palgrave Macmillan.
Thorbecke, E. 2000. “The Evolution of the Development Doctrine and the Role of Foreign Aid, 1950– 2000.” In Foreign Aid and Development: Lessons Learnt and Directions for the Future, edited by F. Tarp and P. Hjertholm, 17–47. London: Routledge.
World Bank. 1990. World Development Report 1990: Poverty. New York: Oxford University Press.
World Bank. 2008. “Aid Architecture: An Overview of the Main Trends in Official Development Assistance Flows.” Accessed June 4, 2018. http://documents.worldbank.org/curated/en/745221468313781790/Aid-architecture-an-overview-of-the-main-trends-in-official-development-assistance-flows.
Worth, O. 2002. “The Janus-Like Character of Counter-Hegemony: Progressive and Nationalist Responses to Neoliberalism.” Global Society 16 (3): 297–315.

Comments

Comment on this article

[1] Acheson, D. 1969. Present at the Creation. New York: Norton.

[2] Altenburg, T. 2007. “Donor Approaches to Supporting Pro-Poor Value Chains.” Report prepared for the Donor Committee for Enterprise Development, German Development Institute. Accessed May 2, 2017. http://www.die.gdi.de/uploads/media/DonorApproachestoPro-PoorValueChains.

[3] Aring, M., and C. Corbitt. 1996. “Best Practice Compass to Workforce Development: A Toolkit for Policymakers, Donors, Governments, NGOs and Practitioners.” The US Department of Education Institute of Education Sciences. Accessed May 5, 2018. https://eric.ed.gov/?id=ED461767.

[4] Barrientos, S., G. Gereffi, and A. Rossi. 2011. “Economic and Social Upgrading in Global Production Networks: A New Paradigm for a Changing World.” International Labour Review 150 (3–4): 319–340.

[5] Bauer, P. 1972. Dissent on Development: Studies and Debates in Development Economics. Cambridge, MA: Harvard University Press.

[6] Black, L. D. 1968. The Strategy of Foreign Aid. Princeton: Van Nostrand.

[7] BMZ. 1992. Sector Concept: Vocational Training. Bonn: BMZ.

[8] Cammack, P. 2001. “Making the Poor Work for Globalisation?” New Political Economy 6 (3): 397–408.

[9] Cammack, P. 2002a. “Attacking the Global Poor.” New Left Review 13 (2): 125–134.

[10] Cammack, P. 2002b. “Making Poverty Work.” In Socialist Register: A World of Contradictions, edited by L. Panitch and C. Leys, 193–211. London: Merlin Press.

[11] Cammack, P. 2004. “What the World Bank Means by Poverty Reduction, and Why It Matters.” New Political Economy 9 (2): 189–211.

[12] Cammack, P. 2006. “Politics of Global Competitiveness.” Papers in the Politics of Global Competitiveness, vol. 1. Accessed October 4, 2016. https://ssrn.com/abstract=981846.

[13] Cammack, P. 2009a. “Poverty Reduction and Universal Competitiveness.” Labour, Capital and Society 42 (1–2): 32–54.

[14] Cammack, P. 2009b. “The Evolving Agenda of Poverty Reduction: From Structural Adjustment to Universal Competitiveness.” Accessed March 4, 2017. https://baierle.me/2010/06/01/the-evolving-agenda-of-%E2%80%98poverty-reduction%E2%80%99-from-structural-adjustment-to-universal-competitiveness.

[15] Cammack, P. 2010. “The Shape of Capitalism to Come.” Antipode 41 (1): 262–280.

[16] Cammack, P. 2015. “What International Organisations Do, and Why They Do It.” Spectrum Journal of Global Studies 7 (1): 62–77.

[17] Cammack, P. 2017. “Capitalist Development in the Twenty-First Century: States and Global Competitiveness.” In Asia after the Developmental State: Disembedding Autonomy, edited by T. Carroll and D. S. L. Jarvis, 124–147. Cambridge: Cambridge University Press.

[18] Carew, A. 1987. Labour under the Marshall Plan: The Politics of Productivity and the Marketing of Management Science. Detroit, MI: Wayne State University Press.

[19] Cox, R. W. 1987. Production, Power, and World Order: Social Forces in the Making of History. New York: Columbia University Press.

[20] Cullather, N. 2010. The Hungry World: America's Cold War Battle against Poverty in Asia. Cambridge, MA: Harvard University Press.

[21] De Long, J. B., and B. Eichengreen. 1991. “The Marshall Plan: History's Most Successful Structural Adjustment Programme.” NBER Working Paper No. 3899. https://www.nber.org/papers/w3899.

[22] Desai, R. 2012. “Theories of Development.” In Introduction to International Development Approaches: Actors, Issues, and Practice, edited by P. A. Haslam, J. Schafer, and P. Beaudet, 45–67. Ontario: Oxford University Press.

[23] DFID. 1997. Eliminating World Poverty: A Challenge for the 21st Century. London: HMSO.

[24] DFID. 2000. Eliminating World Poverty: Making Globalisation Work for the Poor. London: HMSO.

[25] Easterly, W. 2006. The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin.

[26] Gilman, N. 2003. Mandarins of the Future: Modernization Theory in Cold War America. Baltimore: Johns Hopkins University Press.

[27] Hagen, J. M., and V. W. Ruttan. 1988. “Development Policy under Eisenhower and Kennedy.” Journal of Developing Areas 23 (1): 1–30.

[28] Hardin, G. 1995. Living within Limits: Ecology, Economics, and Population Taboos. New York: Oxford University Press.

[29] Harrison, G. 2007. The World Bank and Africa: The Construction of Governance States. London: Routledge.

[30] Hobsbawm, E. J. 1995. Age of Extremes: The Short Twentieth Century 1914–1991. London: Abacus.

[31] Hook, S. 1995. National Interest and Foreign Aid. Boulder, CO: Lynne Rienner.

[32] Huntington, S. 1968. Political Order in Changing Societies. New Haven, CT: Yale University Press.

[33] Johanson, R. K., and A. V. Adams. 2004. Skills Development in Sub-Saharan Africa. Washington, DC: World Bank.

[34] Keohane, R. O. 1984. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press.

[35] Kim, T., and D. Kim. 2017. Secrets of Hegemony. Singapore: Springer.

[36] Kummritz, V., D. Taglioni, and D. Winkler. 2017. “Economic Upgrading through Global Value Chain Participation: Which Policies Increase the Value-Added Gains?” Policy Research Working Paper no. 8007, World Bank. Accessed January 5, 2018. https://openknowledge.worldbank.org/handle/10986/26348.

[37] Lancaster, C. 2007. Foreign Aid: Diplomacy, Development, Domestic Politics. Chicago: University of Chicago Press.

[38] Latham, M. E. 2006. “Redirecting the Revolution? The USA and the Failure of Nation-Building in South Vietnam.” Third World Quarterly 27 (1): 27–41.

[39] LeBaron, G. 2014. “Time to Get Serious about Forced Labour in Supply Chains.” Open Democracy. Accessed March 5, 2018. https://www.opendemocracy.net/en/beyond-trafficking-and-slavery/time-to-get-serious-about-forced-labour-in-supply-chains.

[40] LeBaron, G. 2016. “Slavery, Human Trafficking, and Forced Labour: Implications for International Development.” In The Palgrave Handbook of International Development, edited by J. Grugel and D. Hammett, 381–398. Basingstoke: Palgrave Macmillan.

[41] Le Houérou, P., A. Nishio, and G. Tata. 2008. “Aid Architecture: An Overview of the Main Trends in Official Development Assistance Flows.” World Bank. Accessed May 5, 2018. http://documents1.worldbank.org/curated/en/688091468134712330/pdf/468540WP0Box331Architecture1 May2008.pdf.

[42] Leland, S. 1998. Investing in Tomorrow's Workforce. Newton, MA: Center for Workforce Development at Education Development Center.

[43] Masciulli, J., and M. A. Molchanov. 2012. “Hegemonic Power.” In Encyclopedia of Global Studies, vol. 2, edited by H. K. Anheier and M. Juergensmeyer, 787–790. Los Angeles: Sage Reference.

[44] Mayer, C. 2001. “Transfer of Concepts and Practices of Vocational Education and Training from the Center to the Peripheries: The Case of Germany.” Journal of Education and Work 14 (2): 189–208.

[45] Morgenthau, H. 1962. “A Political Theory of Foreign Aid.” American Political Science Review 56 (2): 301–309.

[46] Morton, A. D. 2007. Unravelling Gramsci: Hegemony and Passive Revolution in the Global Political Economy. London: Pluto Press.

[47] Moyo, D. 2009. Dead Aid: Why Aid Is Not Working and How There Is Another Way for Africa. London: Penguin.

[48] Murphy, C. N. 1994. International Organisation and Industrial Change: Global Governance since 1850. Cambridge: Polity Press.

[49] Neilson, J. 2013. “Value Chains, Neoliberalism and Development Practice: The Indonesian Experience.” Review of International Political Economy 21 (1): 38–69.

[50] Newman, S. 2012. “Global Commodity Chains and Global Value Chains.” In The Elgar Companion to Marxist Economics, edited by B. Fine, A. Saad-Filho, and M. Boffo, 155–161. Cheltenham, UK: Edward Elgar Publishing.

[51] OECD. 1989. Development Cooperation in the 1990s: Policy Declaration by DAC Ministers and Heads of Agencies. Paris: OECD.

[52] OECD. 1994. The OECD Jobs Strategy. Paris: OECD.

[53] OECD. 2009a. Promoting Pro-Poor Growth: Employment. Paris: OECD.

[54] OECD. 2009b. Development Assistance Committee Reflection Exercise: Investing in Development—A Common Cause in a Changing World. Paris: OECD.

[55] OECD. 2013. Interconnected Economies: Benefiting from Global Value Chains. Paris: OECD.

[56] OECD. 2017. OECD Skills Outlook 2017: Skills and Global Value Chains. Paris: OECD.

[57] Packenham, R. A. 1966. “Foreign Aid and the National Interest.” Midwest Journal of Political Science 10 (2): 214–221.

[58] Quentin, D., and L. Campling. 2018. “Global Inequality Chains: Integrating Mechanisms of Value Distribution into Analyses of Global Production.” Global Networks 18 (1): 33–56.

[59] Rostow, W. W. 1960. The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press.

[60] Rupert, M. 1995. Producing Hegemony: The Politics of Mass Production and American Global Power. Cambridge: Cambridge University Press.

[61] Saull, R. 2007. The Cold War and After: Capitalism, Revolution and Superpower Politics. London: Pluto Press.

[62] Saull, R. 2012a. “American Foreign Policy during the Cold War.” In US Foreign Policy, edited by M. Cox and D. Stokes, 59–81. New York: Oxford University Press.

[63] Saull, R. 2012b. “Rethinking Hegemony: Uneven Development, Historical Blocs, and the World Economic Crisis.” International Studies Quarterly 56 (2): 323–338.

[64] Selwyn, B. 2015. “Harsh Labour: Bedrock of Global Capitalism.” Open Democracy. Accessed April 8, 2018. https://www.opendemocracy.net/beyondslavery/benjamin-selwyn/harsh-labour-bedrock-of-global-capitalism.

[65] Selwyn, B. 2016. “Rethinking Recovery: Poverty Chains and Global Capitalism.” Open Democracy. Accessed May 27, 2018. https://www.opendemocracy.net/en/beyond-trafficking-and-slavery/rethinking-recovery-poverty-chains-and-global-capitalism.

[66] Selwyn, B. 2017. The Struggle for Development. Cambridge: Polity Press.

[67] Solheim, E. 2013. “Connecting to Value Chains: The Role of Aid for Trade in Private Sector Development.” ECDPM Great Insights. Accessed June 5, 2018. http://ecdpm.org/great-insights/aid-for-trade/connecting-value-chains-role-aid-trade-private-sector-development/.

[68] Spear, J. 2016. “The Militarisation of United States Foreign Aid.” In The Securitisation of Foreign Aid: Rethinking International, edited by S. Brown and J. Grävingholt, 18–41. London: Palgrave Macmillan.

[69] Thorbecke, E. 2000. “The Evolution of the Development Doctrine and the Role of Foreign Aid, 1950– 2000.” In Foreign Aid and Development: Lessons Learnt and Directions for the Future, edited by F. Tarp and P. Hjertholm, 17–47. London: Routledge.

[70] World Bank. 1990. World Development Report 1990: Poverty. New York: Oxford University Press.

[71] World Bank. 2008. “Aid Architecture: An Overview of the Main Trends in Official Development Assistance Flows.” Accessed June 4, 2018. http://documents.worldbank.org/curated/en/745221468313781790/Aid-architecture-an-overview-of-the-main-trends-in-official-development-assistance-flows.

[72] Worth, O. 2002. “The Janus-Like Character of Counter-Hegemony: Progressive and Nationalist Responses to Neoliberalism.” Global Society 16 (3): 297–315.