Germany provides $17.8 billion of aid which represents 0.51% of the countrys gross national income as of 2015. The countrys foreign aid levels are at an all-time high, recording an official development assistance (ODA) of 83.6%. This value is above the development assistance committee average of 80.6% showing the concern Germany has over foreign aid and development. The country has developed from being a recipient of foreign aid to becoming one of the main donors and contributors. Approximately 2/3 of refugees going to Europe end up in Germany, costing the country approximately $3.5 billion on official development assistance budget. There are no cuts in the global development budget as $86.2 billion are to be used between 2017 and 2021.
The CDI ranking of 2017 shows Germanys performance on aid strategy which contributes and impacts on not only the aid but also on development and social entrepreneurship. The country ranks 5th on community development index (CDI). This position shows Germanys dedication to establishing policies that impact billions of people living in poor regions. The index shows the countrys development-friendliness meaning that Germany provides a suitable environment that encourages aid, development and social entrepreneurship in the country through its intense commitment to international solidarity. It ranks 8th in aid, which indicates low conditionality for the provision of aid. It ranks 9th on technology, indicating a high support or R&D and proper transfer of technical knowledge.
The outcome shows that it encourages development in the region through technological advancement. Improving technology also encourages social entrepreneurship as it involves social interaction and communication while enhancing business growth. It ranks 3rd in trade meaning that it provides an easy, low cost and organized border and customs procedures that allow openness in trade and service provision. The merits that come along with such an environment are proper provision of aid, technological and infrastructural development by creating a suitable environment for business and social entrepreneurship. It is also a role model in commitment to biodiversity and obligations to treaties. This move encourages green life which provides a suitable environment that supports human existence hence encouraging advancement and social entrepreneurship. Germany has structured its aid into three basic institutions to enhance the provision of aid, regional development as well as social entrepreneurship. These include:
The BMZ (The German Ministry for Economic Cooperation and Development).
This body manages the countrys international development plans, strategies, and funding. It provides trade and market access as the ultimate engine that provides development, induces investments that create economic growth to enable them to provide the necessary goods and services. These goods and services are essential to provide the required aid to developing countries. The global review of aid for trade focused on promoting inclusiveness, trade, and connectivity. The ministry commissions the GIZ to set up advisory projects that enhance individual, organization and societal capacities to improve their living conditions through the sustainable use of the available resources. The portfolio of services provided by BMZ that enhances aid, advancement and social entrepreneurship include:
Financial contributions to projects that drive towards the achievement of the goals.
Provision of advisory services from experts in the various fields.
Support and capacity development for agencies that execute the projects.
Providing equipment and material to organizations that receive support.
Conducting studies, analysis and providing reports that gear towards aid, development and social entrepreneurship.
Germany provides inputs that are a contribution to projects and programs that are already in their implementation stage by their partners. In this case, the partners also contribute the measures by the takng responsibility for the operating costs and salaries among others. On behalf of BMZ, they prioritize on ensuring that the projects continue running after funding ceases from the German government. The body forms the main department for foreign aid disbursement.
The GIZ (German Society for International Cooperation)
The GIZ carries out a myriad of activities in Germany that foster aid, development, and social entrepreneurship. It provides expertise in international cooperation and education for sustainable development which is valuable in meeting the challenges faced by the country. Is fosters networking and mutual learning as drivers for successful cooperation while offering training courses on behalf of the German states. These actions enhance aid and development in the country.
The GIZ provides great potential for German businesses to thrive while establishing close links between the international cooperation with partner states and foreign trade promotions. These partnerships create a suitable environment that encourages business growth among them being social entrepreneurship as in allows interaction between different cultures. It also works in conjunction with the Chambers of Commerce abroad and the Association of German Chambers of Industry and Commerce enabling businesses to realize their potential and global markets. Development fosters through understanding the interests of the private sector and linking them with the development goals.
Investment is also made on various programs and projects by the body to enhance aid and development on various departments in the country. They include:
Rural development by using sustainable palm oil (BMEL).
Peace, security, and reconstruction through the German biosecurity program.
Social development through cooperation and learning using new media platforms such as Alumniportal Deutschland Development Cooperation library.
Governance and democracy by supporting the introduction of extractive industries and transparency initiative and community practices that sustain urban development. The society provides federal enterprise and advisory services, builds long lasting partnerships and German technical assistance.
KFW development bank
The KFW development bank helps the German federal government to attain its development goals in policy development and international cooperation. The institution finances and supports projects and programs that involve the public sector in emerging economies and developing countries. It encourages aid and development through programs that alleviate poverty, protects the environment, maintains peace and shapes globalization appropriately in the developing countries. The institution also enhances social entrepreneurship and development through investment financing and reforming programs in a myriad of sectors such as health, water supply, education, energy, financial systems development and rural development.
GIZ and other public agencies complement the work of KFW development bank. Financial cooperation occurs in various main sectors that enhance aid and development such as the supply of water and sanitation, efficiency, and renewability of energy and advancement of the financial sector. The bank also works hand in hand with other sectors such as education, health, forestry, agriculture, solid waste management among others to ensure equal distribution of aid and development.
Various factors cause Germany to invest in aid, development and social growth and entrepreneurship. These factors include diplomatic relations, a show of power as it is a major economic power in Europe, Increase in domestic security and migrant crisis and promotion of European values. Germany has made contributions to various developing countries such as Libya and Liberia among others.
D., Niebel. Aid for Trade in German Development Policy. 2013. Webpage. 16 11 2017.
Federal Ministry for Economic Cooperation and Development (BMZ). n.d. <Federal Ministry for Economic Cooperation and Development (BMZ)>.
Federal Ministry for Economic Cooperation and Development, Germany. n.d. Webpage. 06 11 2017.
KFW development bank. n.d. webpage. 16 11 2017.
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