Despite these turbulent times, there is potentially a positive outcome for the future of development assistance. The unprecedented systemic challenges posed by the coronavirus crisis, and the responses we have already seen, will fast-track the transformation of an old paradigm of donor–recipient aid relations towards a model of international cooperation between all countries.
This transformation, which has been advocated by many commentators, was already underway pre-virus. Our research on Exit from aid and Moving away from aid shows that many economies in Africa, Asia and the Pacific have seen their dependency on aid falling as their socio-economic indicators improved. Countries are moving away from grants and borrowing at below-market rates from bilateral, and especially multilateral donors, towards more expensive loan financing at market rates. Development partners are also increasingly reflecting on how they should forge new relations with partner countries.
Annalisa Prizzon addresses the questions of how the crisis is accelerating this trend and and what the potential consequences are.