(Week 6): Rwanda and Kenya and Foreign Aid

Andrew Mwenda gives a TED talk on AID in Africa.

A Consolidated Appeals Process (CAP) is a program cycle for aid organizations to plan, coordinate, fund, implement, and monitor their response to disasters and emergencies, in consultation with governments. There has not been a CHAP in Rwanda, but there have been CHAPs in Kenya. (UNOCHA.org)

2013 Consolidated Appeals Report (source: unocha.org)

2013 Consolidated Appeals Report (source: unocha.org)

GNI is Gross National Income.  As of 2013 Rwanda’s GNI per capita was $630 (worldbank.org). This puts it below the average developing Sub-Saharan African country in terms of income level.  it is also in the  “Low Income” bracket for the World Bank in terms of income level. As of 2013 Kenya’s GNI per capita was 1,160 (worldbank.org). This puts it below the average developing Sub-Saharan African country in terms of income level, and also categorizes it in the “Low Income” bracket.

Countries of the world by GNI (PPP) per capita (source: wikipedia.org)

Countries of the world by GNI (PPP) per capita (source: wikipedia.org)

OXFAM logo (source: oxfam.org)

OXFAM logo (source: oxfam.org)

The 0.7% ODA/GNI  is a target that was first agreed upon in 1970. “It has been repeatedly re-endorsed by the highest level at international aid and development conferences ” (oecd.org). When OXFAM calls for developed countries to meet financial commitments of 0.7% of GNI as ODA it means that OXFAM is asking countries to donate at least 0.7% of their GNI to international aid.  As of 1993, with the revised System of National Accounts, GNP was replaced by GNI. Therefore members’ performance against 0.7% target is now shown in terms of ODA/GNI ratios.

In Rwanda, the net official development assistance (ODA) to Rwanda in 2009 totaled approximately $934.  Net ODA has averaged 20% of GNI in Rwanda, and the top five donors provided 58% of Rwanda’s core ODA (oecd.org).  In Kenya, the net official development assistance (ODA) to Kenya in 2009 totaled approximately $1,778 million. Net ODA has averaged 5% of GNI in Kenya, and 23% of central government expense.  In 2010 the top five donors contributed to 62% of Kenya’s core ODA (oecd.org).

USAID logo (source: usaid.gov)

USAID logo (source: usaid.gov)

In the 2012 fiscal year the United States government allocated $48.4 billion in economic and military assistance. The break down of that comes down to: $17.2 billion in military assistance and $31.2 billion in economic assistance.  USAID assistance makes up $11.75 billion of that economic assistance. About 1% of the US budget is allocated for aid annually. Kenya is in the top 25 countries that receive aid from the United States. In 2012 it received $745.6 million in economic assistance and $3.60 million in military assistance aid for a total of $749.20 million in economic and military aid. In 2012 Rwanda received over $150 million in aid (usaid.gov).  This was a substantial increase from past years due in large part to the launch of several new U.S. Presidential Initiatives including the President’s Emergency Plan for AIDS Relief (PEPFAR), the President’s Malaria Initiative (PMI), and the Feed the Future (FtF) food security initiative.

The Policy Coherence for Development is an approach and policy tool for integrating the economic, social, environmental, and governance dimensions of sustainable development at all stages of domestic and international policy making.

The eight Millennium Development Goals.  The target date for these goals being reached is 2015 (source: un.org).

The eight Millennium Development Goals. The target date for these goals being reached is 2015 (source: un.org).

Ultimately the goal of the PCD is to make foreign relations to be as ecologically, economically, and socially coherent as possible and thereby to make international cooperation for international development more effective.  Their goal is directly connected to the Millennium Development Goals because of policy coherence. The connection of the Policy Coherence for Development (PCD) and the MDGs are their commitments on achieving greater policy coherence to promote development.

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