4. The Superficial Success of the Development Assistance Committee: Emerging Donors and the Revival of Economic Statecraft

This chapter examined how the increasing presence of emerging donors affects the Development Assistance Committee (DAC) regime and the countries in which it is implemented. The DAC, as an Official Development Assistance regime (ODA), has subsumed emerging donors and enlarged the scope of its application to develop itself by keeping its fundamental principles. This means the DAC regime has developed. Meanwhile, many DAC countries are beginning to increase their commercial interests through development assistance as emerging donors. After China announced its plan to establish the Asian Infrastructure Investment Bank (AIIB), most DAC countries, including the UK, successively joined it. The DAC has a long tradition of encouraging its members to provide technical assistance for poverty reduction and cannot easily change its direction. Therefore, the DAC countries have tried to deal with their changing needs individually, and actually, the DAC has been undermined. Recipients welcome this trend of donors to provide the loans for infrastructure construction. The trend of preferring commercial-based activities will continue for a while. Meanwhile, commercial-based activities cannot meet the needs of poverty reduction and cause risks. Where many donors are prioritizing their commercial interests over poverty reduction in the developing countries, we may leave serious poverty problems behind and spread human rights violations and environmental destruction. Thus, global governance of international development cooperation is essential.