While Official Development Assistance (ODA) comprised the majority of resource flows in international development during much of the twentieth century, today private money (philanthropy, remittances, and investment) significantly surpasses ODA. Moreover, the developing world has also changed thanks to increased remittances, a more skilled labor force, open markets, and rise of communication technology. Private actors in developing countries are taking on a greater role in the development assistance process. These private flows have fundamentally transformed the way foreign aid is delivered: the private sector, with more flexibility and higher risk tolerance, is more likely to fund programs that government aid may not. This paradigm shift offers a great opportunity to reinvent official aid, allowing the aid community to better focus on results, demand-driven development, transparency, and sustainability.
— Suggested Readings
Anheier, H., & Leat, D. (2002). From charity to creativity: Philanthropic foundations in the 21st century. Comedia.
Anheier, H. K., & Winder, D. (2004). Innovations in Strategic Philanthropy—Lessons from Africa. Asia, Central and Eastern Europe, and Latin America, Gutersloh: International Network for Strategic Philanthropy, Bertelsmann Foundation.
Boettiger, Sara, Vivienne Anthony, Kayje Booker and Carrie Starbuckd. (2012). “Public-Private Partnerships in Plant Genomics for Global Food Security”. Ottawa: International Development Research Centre. [PDF 200KB]
Credit Suisse. (2013). Global Wealth Report 2015. Zurich: Credit Suisse Research Institute.
Changing Our World (2010). Global Philanthropy: The Ties That Bind. New York: Changing Our World Inc.
Easterly, William and Tobias Pfutze. (2008). Where Does the Money Go? Best and Worst Practices in Foreign Aid. Washington, DC: Brookings Institution. [PDF 970KB]
Fisher, D. (1983). The role of philanthropic foundations in the reproduction and production of hegemony: Rockefeller foundations and the social sciences. Sociology, 17(2), 206-233.
Ketkar, Suhah and Dilip Ratha (eds.) (2009). Innovative Financing for Development. Washington, DC: The World Bank.
Kim, Soyeun and Simon Lightfoot (2011). “Does ‘DAC-Ability’ Really Matter? The Emergence of Non-DAC Donors: Introduction to Policy Arena”. Journal of International Development, 23: 711–21.
Newland, Kathleen, Aaron Terrazas and Roberto Munster. (2010). Diaspora Philanthropy: Private Giving and Public Policy. Washington, DC: Migration Policy Institute. [PDF 3.5MB]
Johnson, P. D. (2010). Global Institutional Philanthropy: A Preliminary Status Report. TPI/WINGS Publication.
Porter, Michael E. and Mark R. Kramer (2011). “Creating Shared Value,” Harvard Business Review, 89 (Jan/Feb 2011): 62–77.