Donors: No results, no more aid

MANILA, Philippines – With a number of foreign-funded projects tainted by corruption, donor countries are preparing a more “businesslike” and “result-oriented” approach to dealing with developing countries, which may involve depriving these nations of future aid if they fail to show results.

This was disclosed yesterday by Koos Richelle, European Commission Director General of the EuropeAid Cooperation Office, at the closing of the two-day Asia-Europe Meeting (ASEM) Development Conference at the Mandarin Oriental hotel in Makati City.

“We are not here to pinpoint defects of anyone. We are now in the process of restructuring our aid in the direction that we have this result-oriented approach with our partner country in order to ensure that two years from now you can show results everywhere, not only to our taxpayers and our partners but also here in the country, and it is more transparent,” Richelle said at a press conference.

He stressed the importance of development cooperation not as a “post-colonial hang-up or charity” but more as a business contract.

“Because if you do not deliver like in a normal contract we are not supposed to pay you. That is a more businesslike approach to development cooperation,” he said.

At the opening of the conference on Monday, Richelle said more donors are asking for tangible results.

“We should forget all these images that we are Santa Claus and suddenly change into a snowman or something like that because we do not like what is happening,” he said.

He said sustainable development would result from quality leadership and governance in recipient countries, noting that donors must respect each country’s own policies and cooperate with the policy makers to maximize the impact of developmental assistance.

“In this way, donorland avoids becoming Disneyland,” Richelle said.

He said donors have become more willing to put more money on the table provided results are guaranteed. National Economic and Development Authority (NEDA) Deputy Director Rolando Tungpalan, for his part, said many developing countries have demonstrated very sound judgment in advising donors which projects could yield results.

“Results must likewise be geared in the context of mutual accountability. It is no longer the donors saying if you do not achieve this we will move out. I just feel the relationship has deepened and matured,” Tungpalan said.

The “ASEM Development Conference-Towards Sustainable Development” brought together high-level officials and experts for discussions on three major themes of the Beijing Declaration – the Millennium Development Goals, climate change, and social cohesion.