Aid as Handmaiden for the Development of Institutions: A New Comparative Perspective

275 Pages·2013·1.327 MB·English

by  Machiko Nissanke, Yasutami Shimomura (eds.)

Aid as Handmaiden for the Development of Institutions
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Aid as Handmaiden for
the Development of
Institutions
A New Comparative Perspective
Edited by
Machiko Nissanke
Professor of Economics, School of Oriental and African Studies,
University of London, UK
and
Yasutami Shimomura
Professor Emeritus, Hosei University, Japan
Selection, introduction and editorial matter © Machiko Nissanke
and Yasutami Shimomura 2013
Individual chapters © Contributors 2013
Softcover reprint of the hardcover 1st edition 2013 978-1-137-02347-6
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work
in accordance with the Copyright, Designs and Patents Act 1988.
First published 2013 by
PALGRAVE MACMILLAN
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Palgrave Macmillan is the global academic imprint of the above companies
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Palgrave® and Macmillan® are registered trademarks in the United States,
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ISBN 978-1-349-43822-8 ISBN 978-1-137-02348-3 (eBook)
DOI 10.1057/9781137023483
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10 9 8 7 6 5 4 3 2 1
22 21 20 19 18 17 16 15 14 13
Contents
List of Figures vi
List of Tables viii
List of Abbreviations ix
Acknowledgements x
Notes on Contributors xii
1 Institutional Evolution through Development
Cooperation: An Overview 1
Machiko Nissanke and Yasutami Shimomura
2 Shifting Grounds in Aid Relationships and
Effectiveness Debate: Implications for Economic
Development in Sub-Saharan Africa 48
Machiko Nissanke
3 The Eastern Seaboard Development Plan and
Industrial Cluster in Thailand: A Quantitative Overview 81
Fumiharu Mieno
4 The Eastern Seaboard Development Plan of Thailand:
Institutional Aspects of the Challenges and Responses 106
Yasutami Shimomura
5 ODA and Economic Development in Vietnam:
An Assessment of the Transfer of Intangible Resources 124
Tran Van Tho and Nguyen Anh Duong
6 Brantas River Basin Development Plan of Indonesia 161
Koji Fujimoto
7 Institutional Comparative Study of Brantas (Indonesia) and
Kilimanjaro (Tanzania) – and Its Policy Implications 195
Kazuto Tsuji
8 China: From an Aid Recipient to an Emerging Major Donor 220
Takaaki Kobayashi
Index 255
v
List of Figures
1.1 Overseas development aid received as percentage of GNI by
regional groups of developing countries 2
1.2 Bilateral ODA allocated to social and economic
infrastructure in current prices, US$million, and as
percentage of total ODA 9
1.3 Bilateral ODA to economic and social infrastructure projects,
water supply and sanitation 10
1.4 Aid to social and economic infrastructure by
multilateral and bilateral aid 11
1.5 Bilateral vs multilateral aid flows: comparison of SSA
and East Asia 20
1.6 Bilateral ODA flows by donor: SSA vs East Asia 21
2.1 ODA commitments in loans vs grants:
Sub-Saharan Africa and East Asia 60
3.1 Locations of ODA loan projects in Eastern Seaboard
Development Plan 84
3.2 Geography of Eastern Seaboard area 86
3.3 Sectoral structure, growth rate and FDI inflow in 1981–97 88
3.4 Regional share of production 90
3.5 Sectoral structure in Eastern Seaboard provinces 92
3.6 Number and value of BOI-approved investments in
Eastern Seaboard Area 93
3.7 Number and value of BOI-approved investment
in the whole of Thailand 96
3.8 Value of BOI-approved investments in
Chonburi and Rayong provinces and the rest of Thailand 96
3.9 BOI-approved investment in the Eastern Seaboard Area
by sub-region 97
3.10 Establishment of new factories, value of investment:
all industries 98
3.11 Establishment of new factories, value of investment:
labour-intensive industry 99
3.12 Establishment of new factories, value of investment:
petrochemical industry 100
vi
List of Figures vii
3.13 Establishment of new factories, value of investment:
machinery industry 101
3.14 Establishment of new factories, value of investment:
other material industry 102
4.1 The outline of the Eastern Seaboard Development Plan 115
5.1 Organization of the National Highway No.5 project 130
5.2 FDI in the provinces surrounding NH5 134
5.3 Three directions of knowledge transfer 139
5.4 Disbursement of Vietnamese component 147
8.1 Long-term trend of foreign aid to and from China (gross) 221
8.2 Mismatch of major supply centres and consuming regions 225
8.3 Supply–demand gaps for transportation infrastructure 227
8.4 Financial gap 228
8.5 Value creation process in China 229
8.6 Geographical map of material flows between
China and Japan 230
8.7 Coal-dependent economic structures in China 236
8.8 Transformation of export items 237
8.9 Transitions of foreign capital components (1979–99) 241
8.10 East Asian development chain 243
List of Tables
A-1 List of infrastructure projects covered in the JBIC research
programme 42
3.1 Projects under the ESDP 83
3.2 Major industrial estates developed in the 1980s–90s 94
5.1 Chronology of National Highway No. 5
improvement project 129
5.2 Economic growth of the provinces surrounding NH5 134
5.3 Chronology of the Vietnam component in EWTCP 145
6.1 Multi-purpose dam projects 168
6.2 Barrage projects 169
6.3 Irrigation projects 170
6.4 River improvement projects 171
6.5 Volcanic debris control projects 171
6.6 EIRR of selected projects (post-evaluation values) 174
6.7 Paddy yield in Brantas river Basin 175
6.8 Irrigation projects and irrigated area expansion 175
6.9 Installed capacity of power generation 176
6.10 Average annual income per farming household (Rp 1,000) 178
8.1 Coal mining development projects financed
through JEXIM’s bank loans 232
8.2 Mass transportation infrastructure construction projects
in the 1980s through OECF yen loans 233
8.3 Railway transportation (1990) matrix 234
viii
List of Abbreviations
ESDC Eastern Seaboard Development Committee
ESDP Eastern Seaboard Development Plan
EWTCP East-West Transport Corridor Project
FDI foreign direct investment
GMS Greater Mekong Sub-region
HIPC highly indebted poor country
IECDF International Economic Cooperation Development Fund
IFC International Finance Corporation
JBIC Japan Bank for International Cooperation
JICA Japan International Cooperation Agency
KADC Kilimanjaro Agricultural Development Centre
KADP Kilimanjaro Agricultural Development Programme
KATC Kilimanjaro Agricultural Training Centre
KEI Katahira and Engineering International
LMIP Lower Moshi Irrigation Project
NESDB National Economic and Social Development Board
NFC National Fertilizer Corporation Limited
NHIP National Highway No. 5 Improvement Project
ODA official development assistance
OECF Overseas Economic Cooperation Fund
PMU Project Management Unit
RDD regional development director
RRMU Regional Road Management Units
SAPS Special Assistance for Project Sustainability
SSA Sub-Saharan Africa
TCQM Construction Quality Control and Management Bureau
TEDI Transport Engineering Design Incorporated
VCP National Congress of the Vietnam Communist Party
ix