The global 'donor fatigue' and economy of the Czech Republic

This article describes gradual but visible slowdown in development assistance provided by advanced countries for developing and transitional economies during the 1980s and 1990s. The anticipated peace dividend has not been replaced by the increase of ODA and the other forms of aid after the cold war's end. Some probable reasons are discussed in the second part, but found questionable, at least partially. These are regional crises since 1994, transformation costs in some former socialist countries and the low efficiency of aid due to widespread corruption, bad distribution etc. The transitional economies generally did not properly use some comparative advantages in the DC which they had in the early 1990s. Such shortcomings should now be rectified and aid raised as some of them will soon become obliged to join DAC and EU agreements after accession. Appropriate institutional network must be created by them.

Keywords: Czech Economy, poverty, peace dividend, donor fatigue, development assistance, transformation costs, development aid agencies, comparative advantages for assistance