How are Development Assistance Committee (DAC) donors evolving their financial flows and aid modalities in response to the growing influence and economic power of Brazil, South Africa, India and China (BASIC countries)? After presenting the shifting landscape of international development cooperation, we explore five hypotheses about the changing nature of DAC aid allocation patterns and modalities in these BASIC countries. In our conclusion, we reflect on the evolution of DAC engagement in the four BASIC countries and what it might mean for all official donors. Our assessment is that the changing geopolitical environment for development cooperation is once again privileging economic diplomacy concerns within DAC donors, propelling specific kinds of decisions about the choice of instruments, sectors and modalities in BASIC countries. It would appear that the administrative practice of foreign aid is increasingly derived from changes within the institutional environment for international development.
Nilima Gulrajani and Raphaëlle Faure