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China as an Emerging Donor: The Chinese Aid Model and the International Aid Architecture
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신흥원조공여국으로 부상하는 중국: 중국식 원조모델과 국제원조질서에의 시사점

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Type
Academic journal
Author
Journal
Institute of International Affairs, Seoul National University Review of International and Area Studies Vol.18 No.4 KCI Accredited Journals
Published
2009.12
Pages
37 - 64 (28page)

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China as an Emerging Donor: The Chinese Aid Model and the International Aid Architecture
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China has taken on an increasingly important role as an emerging donor by providing a new channel of development assistance to countries in Asia, Latin America and especially Africa. This development has raised a great deal of interest and has also become a source of concern to the traditional donor community. This paper begins by providing an overview of the historical evolution of China's foreign aid policy since 1949 and discussing the evidence concerning the size of China's aid. It then analyzes the main elements and characteristics of the Chinese aid model with a view to understanding its implications for the international aid architecture. China's aid policy has been shaped by three underlying features: the principles of non-interference and equality and mutual benefit, the efforts to maximize aid efficiency given China's status as a developing country, and the use of foreign aid policy as part of a broader international economic strategy of seeking natural resources and energy security and encouraging China's enterprises to “go global.” The main characteristics of the Chinese aid model include the dominance of concessional lending and project-based aid executed by Chinese state-owned enterprises; the absence of policy conditionality attached to aid; the close nexus of trade, investment, and aid within the framework of South-South cooperation; a fragmented aid delivery system; and lack of transparency. These characteristics are in sharp contrast with the approaches and norms that have been generally agreed upon by the traditional OECD Development Assistance Committee (DAC) donors. By presenting an alternative aid model and providing new financing options to recipient governments, China's aid is likely to continue to put competitive pressure on the existing international aid architecture.

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