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1.2 OVERVIEW OF DEVELOPMENT ASSISTANCE TO INDIA

Trends in External Assistance to India

Table 1: Trend in Utilisation of External Assistance to India, 1980-1998 (US$ Mio)

Source

1980-81

1990-91

1997-98

Bilateral Organisations

1100.3

1466.7

1059

Multilateral Organisations

1633.4

2269.8

2106.6

World Bank

835.6

1991.4

1415.7

EEC

104.6

28.5

63.6

ADB

-

212.4

601.1

IMF Trust Fund

679.7

-

0.2

Others

4.3

37.5

26.4

GRAND TOTAL

2733.7

3736.5

3164.7

Source: Economic Survey (1998-99), Government of India

 

General trends in external assistance can be derived from the Economic-Survey (1998-99) of the Government of India, which captures loans and grants from bilateral and multilateral sources that are directly channelled through the Governments budget. Table 1 shows that the utilisation of external assistance stood at 2.7 billion US$ in 1980-81, peaked at 3.8 billion US$ in 1990-91 and has since shown a declining trend. Funding from bilateral sources accounted for 33.5% of the total external assistance received by India in 1997-98, multilateral sources for 66.5 %.

Of the total external assistance utilised in 1997-98, loans accounted for 92.2 % and grants for 7.8%. These figures underestimate the grant component, as technical assistance which is directly administered by the Development Partner Organisations is not reflected. This is also the reason for the lack of data on UN assistance in this table. The latest data on ODA that also includes technical assistance is shown in table 2 below.

 

Table 2: Summary table of total development assistance in 1995 (latest year available)

Source of aid

US Dollars (Millions)

Percentage

Multilateral

UN system (excluding the IFIs)

World Bank

Other IFIs

Non-United Nations system

 

144.6

757.2

n/a

31.7

 

6.0

31.1

-

1.3

Bilateral

1483.6

61.1

Sub-total ODA

2417.1

99.5

NGOs

12.0

0.5

Total development assistance

2429.1

100%

Source: UNDP India

 

Trends in UN System Development Assistance

The largest source for UN Development Assistance to India is the International Development Association (IDA) of the World Bank Group, accounting for a range of 84 to 95 % of total UN assistance between 1991 and 1998 as shown in table 3 below. From a total of 1.5 billion US$ in 1991, total UN Development Assistance reached 3.5 billion US$ in 1993 and subsequently declined to 0.9 billion US$ in 1998. The same trend can be observed for UN Development Assistance excluding IDA. Part of the reason for the decline of funding of most UN organisations in the last two years can be attributed to the fact that major programmes such as UNDP, UNFPA and WFP embarked on a new programming cycle in 1997 or 1998. As is well known, programmes are usually formulated in the beginning of cycles and delivery tends to speed up after the first stage.

Table 3: UN System Development Assistance (disbursements, in thousand US$)

Organisation

1991

1993

1995

1996

1997

1998

1999 pledges

ESCAP

10

4

1

2

N.A

N.A

N.A

FAO

899

1,278

557

192

400

350

600

IDA

1,342,200

3,353,000

942,393

993,381

892,300

798,000

N.A

IFAD

4,932

N.A.

4,634

17,127

N.A

N.A

N.A

ILO

148

154

25

80

1,160

1,520

1,040

UNDCP

1,957

4,604

4,131

482

448

506

912

UNDP

24,546

29,971

19,694

40,805

21,445

18,543

16,500

UNESCO

129

271

750

60

N.A

1,451

748

UNFPA

13,088

9,138

6,256

12,085

8,800

8,500

13,000

UNHCR

N.A

N.A

N.A

3,226

1,784

1,322

1,602

UNICEF

40,834

64,762

54,948

75,238

52,000

41,000

73,000

UNIDO

202

604

1,981

598

1,400

1,700

5,300

UNU

68

31

25

N.A

N.A

N.A

N.A

UPU

7

N.A

4

N.A

N.A

N.A

N.A

WFP

49,830

51,660

32,165

35,939

26,540

21,290

25,260

WHO

9,977

8,815

5,277

1,919

9,282

16,450

19,000

WMO

N.A

2

N.A

12

N.A

N.A

N.A

TOTAL

1,488,827

3,524,294

1,072,841

1,181,146

1,015,559

910,632

156,962

Total excl. IDA

146,627

171,294

130,448

187,765

123,259

112,632

N.A.

 

Source: UNDP India

Official Development Assistance (ODA) by type

Table 4: ODA disbursements by type, 1995 (latest year available)

ODA by type

US Dollars (Millions)

Percentage

Investment Project Assistance

496.1

20.4

Technical Cooperation

1217.7

50.1

Programme/budgetary aid or balance-of-payments support

74.1

3.1

Food Aid

30.0

1.2

Emergency and relief assistance/humanitarian assistance

4.7

0.2

Non-specified

606.6

25.0

Total

2429.1

100

 

Source: UNDP India

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