DT 17 / 2008

Hidden aid tying via NGOs, emergency relief and state agencies

 
An OECD report on donor progress in aid untying suggests that a growing portion of bilateral aid is no longer tied to the procurement of goods in donor countries. But there are “grey areas", such as NGO grants and humanitarian assistance, which donors do not report as tied. And the study is silent about the practice by some donors of channelling ODA through national state agencies.
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Ethiopia. Sweden to cut aid, while Norway opens for hydropower

 
Sweden and Norway have both been caught in diplomatic rows with Ethiopian authorities, but they have adopted very different approaches. Norway intends to step up aid funding and invest in hydropower, while Sweden is likely to draw down its aid level due to human rights concerns.
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Putting reigns on logging in exchange for forest aid

 
Norway is offering aid to Indonesia and Papua New Guinea in exchange for putting the reigns on logging activities. Can little Norway offer a carrot big enough to put a dent in Indonesian forest policy?
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Uganda rejects Norwegian financing model for Bugoye

 
Authorities in Uganda have rejected a Norwegian proposal to subsidise the Bugoye hydropower project with NOK 60 million in aid funds. Uganda insists that grants through the fiscal budget have to be used based on approval by Parliament.
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Transparency in procurement. Danish rules or Chinese rules?

 
While transparency in aid procurement carried out by the Danish Foreign Ministry in Copenhagen is light years ahead of most other donors, the same cannot be said, it seems, for contracts handled by the embassies.
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