China and the OECD DAC

It’s a curious exercise to run through the list of countries recently noted to be making significant advancements in their trade with developing countries. This, as reported in a recent Asian Tribune article and a 2007 UN Report, “The State of South-South Cooperation.” China, India, Brazil, Malaysia, Thailand, South Africa, India — really, it’s a fantastic game of ‘what doesn’t belong.’

The correct response is of course China. China is the only non-DAC donor on the list, thus removed from various guidelines which bind the other parties. What this means in practice is that no one in the international community is really quite sure as to what’s behind Chinese aid, how it works, or how it fits into the bigger picture of foreign aid assistance. Much of my time at the UN was spent trying to discover this; yet the most I - or anyone - was able to conclude is that Chinese “aid” is not really “aid” in the traditional sense, but is tied to various kickbacks the government hopes to receive in return. What truly lies beneath it is at this point anyone’s guess.

The likelihood of China joining the DAC anytime soon is quite slim. At the same time, China continues to pump billions upon billions of dollars into various projects, most prominently in Africa. Just yesterday the
China-Africa Development Fund signed its first batch of investment deals totaling $90 million. In the world of development aid this makes China an anomaly. While incorporating China into the DAC may presently not be an option, the international community must find some way to rope China in - not only for monitoring purposes but also, and most importantly, to successfully coordinate and align development projects to ensure they attain their intended objectives.