Search Results

During the past decade or so, several new trends have emerged on the global geopolitical and economic scene. Some of them have taken shape over the years, establishing new frontiers for the Indian development cooperation programme. As noted in earlier chapters, apart from an increase in funding volumes, new features and novel modalities have come to define Indian's development cooperation programmes. The new trends are discernible both on the ground, where projects and programmes are delivered, and at headquarters, where governance mechanisms and – more importantly – an institutional framework have evolved. This chapter explores some of the major shifts that have advanced the frontiers of engagement and opened up new avenues for development partnerships. It also looks at possible challenges to be addressed if resources are to be best utilised in the process.

Several new directions have influenced the profile of India's development cooperation programmes. In this regard, the effort to reach out to partner countries’ communities and CSOs, along with local governments, in the implementation of development programmes has been extremely well-received. Secondly, the establishment of the DPA is expected to ensure optimum resource utilisation for greater returns, with a due role reserved for territorial divisions in the MEA. Its efforts in consolidating country- and region-specific information and analysis will make this possible. The third major move is a greater push for S&T and the fourth, and most important, addition is the rise in total allocations and expenditure by the government (although MoF has yet to insulate these allocations).

There are areas of concern as well, which in due course may pose major challenges to the development partnership programme. At the practical level, they need to be addressed adequately and wholeheartedly so that the programmes become more enduring and resilient. First and foremost in this list is the health of Exim Bank, which is of key importance to the LoC programme. Even though the Cabinet has amended the 2005 policy to allow other public sector banks to extend LoCs, it is still the Exim Bank that dominates the field and any major default on a LoC would have crucial implications for it. It is therefore extremely important that all possible sources of potential trouble be addressed before it is too late.

Since India's Independence, almost all government ministries have operated in line with requests from partner countries. It is not only the MEA that initiates and manages development cooperation-related programmes. Line ministries, particularly those of Agriculture, Science and Technology, Health and Family Welfare, Environment and Forest, Human Resource Development and related agencies also play an important part (see Figure 3.1).

Chapter 2 included a discussion of the role of Exim Bank, an instrument of the MoF, in the new arrangements for managing credit lines. Line ministries become involved when a related demand is raised by partner countries. Socio-economic indicators show that most partner countries are at a stage where innumerable sectoral challenges dominate their policy concerns, a situation duly reflected in the nature of the demands that India faces. The line ministries’ response, however, varies depending on how they balance domestic pressures against external demands. For some, domestic demand is such that their thrust is largely towards developed countries. The Department of Biotechnology (DBT), for example, had major programmes with the South since its establishment, but this demand began to taper off from 2006 in response to a growing thrust toward linkages with developed countries. The DBT Annual Report for 2012–13, as in previous years, has nothing to report on India's engagement with developing countries. It is clear that even if MEA pushes for closer ties with a specific set of countries its intentions would remain in the realm of rhetoric if line ministries do not respond with the requisite commitment. At times, individual preferences and priorities seem to prevail for the selection of particular countries and programmes. It goes without saying that in some instances, the traction for cooperation with Northern partners and visits to those countries is extremely strong.

Reaction from line ministries also depends on the nature of any international links they may have. In that respect the policies of international institutions have important implications for the nature of the programmes line ministries develop; for instance the World Health Organization (WHO) might facilitate programmes from the Ministry of Health (MoH) to other developing countries. Similarly, FAO or International Fund for Agricultural Development (IFAD) would influence the involvement of the Ministry of Agriculture (MoA). Such influence may be direct, or through personal exposure and other indirect contacts such as seminars, workshops, or fellowship programmes.