By Edited by Yasutami Shimomura Edited by Machiko Nissanke
Via comparative stories of aid-supported infrastructure tasks in East Asia and Sub-Saharan Africa, the ebook examines how reduction may possibly support improvement approaches through facilitating improvement of neighborhood endogenous associations.
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Extra resources for Aid as Handmaiden for the Development of Institutions: A New Comparative Perspective
Utilization and nurturing of endogenous institutions: the driving force for achieving the development mission should come from recipients’ endeavour, utilizing and strengthening endogenous institutions, both formal and informal, embedded in their own social-political system of recipient countries. In participating in infrastructure development with strong commitments by both donors and recipients of development, donors should identify and nurture aspects of strength found in local endogenous institutions, and their technical advice should be built on the strength of these institutions.
The concept of the Aichi Plan encompassing basic water resource infrastructure projects was formulated by the ACPC with the support of the Japanese Ministry of Agriculture. In fact, the Aichi Plan itself was one of the 31 World Bank-financed projects implemented between 1954 and 1966 during the early era of rapid growth in Japan. The Institutional Evolution through Development Cooperation 27 World Bank assisted the execution of the Aichi Plan, particularly at the stages of planning and implementation, though its financial contribution was only 4 per cent of the total project investment cost.
Thus, there have been a series of institutional spillover effects stemming from the two pioneering aid-funded integrated water resource management projects in East Asia. With these examples in mind, we shall examine in more detail the contribution that foreign aid can make to local institution development. 1 Introducing the concept of endogenous institutions It has been increasingly recognized in the literature that institutions matter for economic performances and development outcomes. Institutions can be statutory laws and rules, informal norms, established organizations, contracts, mindsets, or combinations of some or all these elements (Aoki 2001).