Does the EU's Development Assistance Framework Need Updating? A Comment

24 Pages Posted: 11 Aug 2014 Last revised: 11 Sep 2014

Derk Bienen

BKP Development Research & Consulting GmbH; Addis Ababa University

Dan Ciuriak

Ciuriak Consulting Inc.; C.D. Howe Institute; Centre for International Governance Innovation (CIGI); BKP Development Research & Consulting GmbH

Date Written: July 1, 2014

Abstract

The general understanding of international trade has been transformed over the past decade or so with the now massive body of literature developed in the context of so-called "new new trade theory" which takes into account the heterogeneity of firms and the importance of fixed costs of trade. Thinking on economic development has similarly undergone profound change driven by the relative success of the BRICS and the re-evaluation of the role of the state in economic development in general and in industrial policy in particular. Meanwhile, secular trends and cyclical developments – in particular the global economic and financial crisis of 2008-2009 and the ensuing prolonged growth slump in the advanced countries – have fundamentally altered traditional relationships between the advanced countries that serve as donors of development assistance and the developing countries that receive that assistance. All of these changes have implications for donor-recipient relations and raise questions for the design of external aid policies, particularly in the area of trade and private sector development: to "whom" is the aid being delivered (firms, industries, governments?); "what" is being delivered; and "how" is the aid being delivered. In this comment, we consider the implications for EU development assistance policy.

Keywords: European Union, development assistance, aid for trade, private sector development, firm-level trade theory, industrial policy

JEL Classification: O14, O19, O24, O25, F13, F14, L52

Suggested Citation

Bienen, Derk and Ciuriak, Dan, Does the EU's Development Assistance Framework Need Updating? A Comment (July 1, 2014). Available at SSRN: https://ssrn.com/abstract=2478431

Derk Bienen

BKP Development Research & Consulting GmbH ( email )

Jutastr. 14
München, 80636
Germany

Addis Ababa University ( email )

King George VI St
Addis Ababa, 1000
Ethiopia

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

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