How India shapes its development aid

BOOK REVIEW - RUP NARAYAN DAS

- RUP NARAYAN DAS

It is axiomatic in international diplomacy that foreign aid is not a philanthropic or altruistic instrument. It is, in fact, considered an instrument of foreign policy and a country's external engagement. Every country capable of extending foreign aid has combined this ability with its foreign policy goals and strategic objectives. Developed countries such as the USA have used foreign aid as a tool to redirect spending on military equipment for security purposes. For example, the US negotiated the Public Law 480 agreement (also known as the Food for Peace Act) to extend foreign assistance to poor countries in an attempt to dissuade those countries from accepting help from its Cold War adversaries.

President Lyndon B Johnson used the PL-480 as leverage to secure support for US foreign policy goals, even placing famine aid to India on a limited basis until he received assurances that the Indian government would temper criticism of US policy on Vietnam.

The edited volume under review, consisting of proceedings of a seminar on India's development assistance, analyses India's development assistance in various countries, particularly the immediate and extended neighbourhood. It is noteworthy that India is still a developing economy aspiring to be a developed economy. In spite of this, India extends developmental assistance to needy countries, particularly in Asia and Africa. India's aid diplomacy is carried out through two broad omnibus architectures—"Development Cooperation" and "Economic Diplomacy".