Abstract

Problems of Quantification of External Assistance to Developing Countries

A critical assessment of external assistance to developing countries poses difficult problems of quantification. These becloud especially any comparative analysis of the aid efforts by the different donor countries as well as the international discussions on development and assistance issues. The article brings to light some of the crucial problems involved in quantifying assistance flows. It discusses, e.g. such concepts as „commitments“ and „disbursements“, „gross flows“, „net flows“, „net transfer“ and the „discounted present value method“; the impact of different terms and conditions of aid on the economic burden of donors and the economic benefit of recipients, notably their indebtedness position; short-term supply constraints in the form of budgetary and balance of payments difficulties; the ambiguity of the aid and development „targets“, limitations of „absorptive capacity“; the manifold problems involved in estimating assistance requirements („gap“ studies); the evaluation of self-help performance by the developing countries; the issue of „burden sharing“ among the aid providers. The article also presents some of the relevant statistical data on Western assistance flows, together with comparative estimates for the East Bloc. Rather than arriving at a set of unique conclusions, the author shows the effects of alternative courses to quantify the critical parameters in the calculations, many of which are in any case still subject to international debate.