Introduction

Donors have put emphasis on different aspects of development co-operation since World War II. In the 1950 and 1960s investments in physical capital and infrastructure were seen as primary means of development. In the 1970s, health and education were seen as important additional investment areas for economic growth. In the 1980 and 1990s, after a global recession and debt problems in developing countries, more emphasis was put on correcting macroeconomic imbalances and market distortions through stabilisation and structural adjustment programmes. In recent years, the international donor community has made poverty reduction the central objective of development co-operation. This last shift can be at least partly explained by the fact that after so many years of development co-operation still a large number of people are living in poverty. It is now generally recognised that while economic growth is essential to poverty reduction, this growth may not automatically trickle down to the poor. In addition, it is recognised that stabilisation and structural adjustment may have a temporary adverse effect on the poor and that the poor therefore need protection, for example in the form of social safety nets.

The fact that economic growth does not automatically trickle down to the poor is because poverty not only refers to the lack of income and financial resources but also includes non-monetary factors such as the lack of access to education, health, natural resources, employment, land and credit, political participation, services and infrastructures. This broader concept of poverty is reflected in the Millennium Development Goals, adopted at the Millennium Summit of the United Nations in 2000. These goals set targets for reducing poverty, improving health and education, increasing gender equality, and protecting the environment, which should be reached before 2015. More information on the Millennium Development Goals can be found here.

Research issues

Development co-operation is an important research topic. Main issues that are subject of research are the following.

• Effectiveness of aid . Does aid contribute to development? Do policies in the recipient countries affect the effectiveness of aid? Do policies in the donor countries/organisations affect the effectiveness of aid?
• Debt reduction . How can debt relief become more effective? How much does debt relief contribute to a country’s development goals?
• New approaches in development co-operation: PRSPs.
• Trade related technical assistance and capacity building . How should technical assistance be organised? What are success factors of technical assistance programmes?