Between Theory and Practice of India's Development Assistance

Preface 9

Introduction 11

Part I: Theory 17

Chapter 1. The concept of development 19

1.1. Traditional views on development 20

1.2. New views on development 21

Chapter 2. The process of economic development 25

2.1. Development economics (first generation theories) 28

2.2. Indian responses to development economics 31

2.3. Structuralism 37

2.4. Structuralists’ approach and India’s economic policy 43

2.5. Neo-classical resurgence: The Washington Consensus and beyond 45

2.6. Indian contribution to neo-classical resurgence 53

Chapter 3. The role of foreign assistance in economic development 63

3.1. The concept of foreign aid 63

3.2. Aid and growth relationship – the emergence of theories and models, 1950–1970 66

3.3. Indian economists on foreign aid, 1950–1970 71

3.4. Neoclassical growth theory and empirical examination of the aid-growth relationship after 1970 79

3.5. Indian economists on the role of foreign aid after 1970 82

Part II: Institutions 87

Chapter 4. The evolution of the institutional framework of foreign assistance 89

4.1. Institutions within North–South relations 90

4.2. Institutions within South–South relations 95

4.3. The UN System and Bretton Woods institutions 114

Chapter 5. Emerging donors in the contemporary aid architecture 125

5.1. The concept of global aid architecture 125

5.2. Defining emerging or non-DAC donors 127

5.3. Emerging donors’ classification 128

5.4. Impact of the re-emergence of Southern assistance providers on the global aid architecture 130

5.5. ‘Emerging donors’ – conclusions 134

Part III: Development assistance 137

Chapter 6. India as a donor country 139

6.1. India’s foreign assistance from the historical perspective 139

6.2. Defining and measuring India’s aid-related activities 148

Chapter 7. Modalities and administration 155

7.1. Grant assistance and advances to foreign governments 156

7.2. Capacity building programmes 157

7.3. Lines of credit (LOCs) 162

7.4. Three pillars of India’s development partnership programmes – conclusions 165

7.5. Administration – towards aid agency? 167

Chapter 8. India’s assistance relations with particular countries 173

8.1. India’s neighbourhood and Afghanistan 173

8.2. African countries 196

8.3. CIS, Caribbean and other countries in the world 205

Chapter 9. Motives and effectiveness of India’s assistance 211

9.1. The motives in the Cold War period 211

9.2. The contemporary motives 216

9.3. The assessment of assistance effectiveness 221

Conclusions 226

Appendix 1 234

Appendix 2 236

References 237

Lists of Figures 261

List of Tables 263