A Comparative Study of ODA’s Contribution to the

Abstract

Developing countries face challenges of massive poverty, high mortality rates, stagnate economic growth and low levels of education attainment. Governments in these countries do not have sufficient financial resources to fight these challenges effectively. Foreign aid has played an instrumental role in the implementation of development programs to combat poverty. Official Development Assistance (ODA) represents an important part of the resources allotted for programs and projects executed in countries like Cameroon. This thesis examines the contribution of France, Germany and Japan’s ODA to the socio-economic development of Cameroon. The contributions are measured in relation to the Millennium Development Goals (MDGs). The main focus is on ODA bilateral assistance and does not include ODA multilateral assistance. Using a descriptive method, this thesis discusses the relationship that exist between the above donors and Cameroon, including the strategies the donor’s used in implementing ODA in Cameroon. All of the strategies are in line with the MDGs, therefore, this study will analyze Cameroon’s effort in achieving the MDGs. It will equally analyze the contributions of the donors by examining their self-appraisals ex-post evaluations of the projects, and by presenting a comparative analysis of the three ODA contributors in the development of the country. Finally it will conclude with an analysis of the general contribution of the donors to the socio-economic development of Cameroon, measured in relation to the MDGs. This thesis has found out that, ODA from France, Germany and Japan have contributed massively to the development of Cameroon. From the self-appraisals of their development projects and programs, much work has been done in the education and road sectors in Cameroon. It equally found out that, from the comparative analysis of the three ODA contributors to the country’s development, Japan and France have the highest scores (86% “B” and 85% “B” respectively), while Germany comes with 76% “C. Nevertheless, they have contributed greatly to the socio-economic development of Cameroon and have played a significant role in the implementation of development programs to combat poverty in the country. Recommendations for ODA flow in Cameroon, for International Donors: donors should prepare an ODA charter which clearly defines the people of rural areas and local communities as the primary beneficiaries of all ODA packages. Donors should increase the amounts of aid grants appreciably. This increase should hover around the ceiling of 0.7% of their respective GDPs to which they committed themselves to achieve in 2002, or to put in place innovative financing mechanisms. While on the part of the government of Cameroon: The government should improve transparency and public finance management; this would motivate donors to grant more aid to the country. And also, increase the number of development projects especially in the health sector of the country.