Busan and the Emerging Aid Architecture

The report analyzes the shift in international development cooperation following the Busan High Level Forum, highlighting the rise of South-South cooperation and the challenge emerging powers pose to the OECD-DAC's Paris Declaration. It notes a transition from a narrow 'aid' agenda toward 'development effectiveness' and economic growth, particularly in Africa, where the influence of traditional Western donors is declining in favor of results-oriented investments from countries like China, India, and Brazil. While the Busan Outcomes Declaration seeks a more inclusive Global Partnership for Effective Development Cooperation, the document argues that a fundamental divide persists between Western aid practices and the mercantilist, tied-aid approaches of emerging economies.

• The influence of traditional Western aid in Africa has declined significantly, dropping from 70% of all financial transfers in the 1970s to less than 30% at the time of writing.
• Emerging powers, particularly China, have challenged the Western donor consensus by utilizing state enterprises and government-backed concessional finance to secure resources and market share in Africa, often ignoring Western requirements for democracy and good governance.
• By 2009-2010, the combined loan books of the China Development Bank and the China Export-Import Bank for developing countries reached at least $110 billion, surpassing the World Bank's $100 billion for the period from mid-2008 to mid-2010.
• The Busan Forum attempted to move beyond the 2005 Paris Declaration's narrow focus on 'aid' toward a broader 'development effectiveness' framework that includes private foundations, the private sector, and emerging powers.
• Despite the Busan Outcomes Declaration, a divide remains between OECD-DAC countries and emerging powers; China and India refused to sign the Declaration directly, preferring separate endorsement.
• South-South cooperation is viewed by many African governments as the most effective approach to development, as evidenced by a common position adopted in Addis Ababa in September (year not specified, context 2011).
• Some African policymakers have criticized the 'tied aid' approach of emerging powers, specifically China, for bypassing existing national institutions and processes.
• The Global Partnership for Effective Development Cooperation is intended to replace the OECD’s Working Party on Aid Effectiveness, with a target to define working arrangements by June 2012.

APA

South African Institute of International Affairs (2012). Busan and the Emerging Aid Architecture. https://saiia.org.za/research/special-report-busan-and-the-emerging-aid-architecture/

Chicago

South African Institute of International Affairs. Busan and the Emerging Aid Architecture. 2012. https://saiia.org.za/research/special-report-busan-and-the-emerging-aid-architecture/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Busan and the Emerging Aid Architecture |date=11 January 2012 |url=https://saiia.org.za/research/special-report-busan-and-the-emerging-aid-architecture/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2012busan, author = {{South African Institute of International Affairs}}, title = {{Busan and the Emerging Aid Architecture}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jan, url = {https://saiia.org.za/research/special-report-busan-and-the-emerging-aid-architecture/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }