Regulating Foreign Aid through Act

1
Regulating Foreign Aidthrough Act Effects and
Implications for China

• Tongquan Sun Taidong Zhou
• Rural Development Institute,
• Chinese Academy of Social Sciences
• February 14 2014, ANU

2
Contents

1. Research context
2. Cases selected
3. Definitions of foreign aid regulation
4. Who regulating foreign aid with acts
5. Why having foreign aid acts
6. Effects of regulating foreign aid with acts
7. Foreign aid regulation in China
8. Implications to China

3
Research Context

• Challenges to Foreign Aid Administration in
  China
• Rapid growth of aid volume
• Normalization of aid administration
• Rule of law
• Transparency and accountability

4
Cases Studied

• Australia
• Japan
• South Korea
• United Kingdom
• United States

5
Foreign Aid Regulation

• Policy papers
• Policy statements
• Regional or country development cooperation
  planning documents

6
Foreign Aid Regulation

• Acts
• Basic law
• Organizational law
• Administrative rules and/or decrees
• International treaties / bilateral multilateral
  development cooperation agreements
• Other related regulations procurement,
  budgeting, auditing, etc.

7
Who Regulating ODA with Acts

• Who have basic law of foreign aid
• USA
• UK
• South Korea
• Japan
• Who has no basic law of foreign aid
• Australia

8
Why Having a Foreign Aid Act

• Major factors
• political system
• legal traditions
• international and domestic context
• realistic needs / regulatory impacts analysis

9
Effects of Regulating Foreign Aid with Acts

• Fundamental norms of foreign aid administration
• Purposes, goals, principles, target recipients,
  sectors, strategies, etc.
• Strengthened Coordination between departments
• clarified and regulated functions and roles of
  related departments, operational procedures
  etc.in some countries.

10
The Effects of Regulation

• Transparency
• Accountability
• Aid effectiveness (?)
• Relevance
• Efficiency

11
Foreign Aid Regulation in China

• Policy
• Policy statements
• government leaders statement
• white paper
• Government decisions and guidelines

12
Foreign Aid Regulation in China

• Acts
• Departmental administrative measures and
  management rules
• Funds management, goods and materials inspection,
  project quality examination, qualification of
  project contractor, volunteer management, etc.
• Other related laws
• Budgeting act, governmental procurement act,
  auditing act, etc.

13
Implication to China

• Foreign aid rules
• As a basic law
• Foreign aid coordination committee
• Higher than the Inter-agency Coordination
  Mechanism
• A supervising committee in the NPC
• Planning and evaluation system
• Transparency
• Linking up with international soft law

14

• Thank you!