Contrasting India and China as Aid Donors: A Political Economy Analysis

Abstract:     
This study examines the rise of India and China as aid donors in the context of the global discourse on international development assistance. Their initiatives are compared in terms of their histories, institutions, instruments and motivations. Though the two countries share parallels in their stress on ‘mutual benefit’ and forgoing conditionalities, it is argued that commercial interests are much better articulated in China’s aid program. Whereas for India, garnering support for its UNSC permanent membership bid and maintaining regional pre-eminence seem more important goals. Concerns regarding the rise of non-DAC (Development Assistance Committee) lending are also critically examined and found unsubstantiated given the available evidence.

Number of Pages in PDF File: 39

Keywords: Development Aid, Emerging Donors, India, China, DAC, OECD

JEL Classification: O19, F35

working papers series