The China International Development Cooperation Agency (CIDCA) was established in March 2018 and has been closely monitored since by international experts and development consultants in its efforts to bring a difference to China’s foreign aid delivery system. What is the agency’s mandate and which main functions does it carry out? What priorities have been tackled by the Chinese authorities following its establishment? The answers to these questions are the main topics of the analysis prepared by DevelopmentAid.
China’s net foreign aid value has continuously grown over the last 20 years and is estimated to have significantly increased from US$5.0 billion in 2014 to US$5.8 billion in 2016. The three major components of Chinese foreign aid are (1) grants and interest-free loans, (2) government concessional loans and (3) multilateral foreign aid. Until March 2018, when CIDCA was established, the main authorities responsible for carrying out foreign aid delivery had been the Ministry of Commerce of the People’s Republic of China (MOFCOM) and the Ministry of Foreign Affairs of the People’s Republic of China (MOFA), through more than 20 different subordinated departments and commissions.
According to the official Chinese government’s press release, CIDCA was created in order to strengthen the strategic planning and overall coordination of Chinese foreign aid, consolidate foreign aid management, reform and optimize the processes and the methods of foreign aid delivery and improve the level of China’s overall diplomacy, as well as to contribute to the further development of the Belt and Road Initiative (BRI).
The agency’s mandate represents the integrated responsibilities of its predecessors – MOFCOM and MOFA – which were the long-time champions of Chinese foreign aid delivery. CIDCA’s main responsibilities are to formulate strategic guidelines, plans and policies for foreign aid delivery, coordinate and offer advice on major foreign aid issues and identify major programs and supervise and evaluate their implementation.
However, besides its inherited responsibilities and tasks, CIDCA is expected to be the driver of certain improvements in the Chinese aid delivery sector:
Building an integrated management system
The agency will draw up a unified foreign aid management system in order to make the aid delivery process more transparent, accurate and accountable.
Improve the monitoring and evaluation of the foreign aid
With assistance from the relevant MOFCOM and MOFA departments, the agency will establish supervision and inspection mechanisms for major projects and introduce supervision of their implementation status.
Formulate country-specific aid policies
In conjunction with relevant departments, CIDCA will tailor country-specific aid policies that will serve as the main policy basis for foreign aid provision.
Communicate on behalf of the Chinese government
The agency will formulate a policy for international exchange and cooperation on foreign aid, conduct aid exchange and cooperation with other countries and international organizations, participate in development policy dialogues and communicate on behalf of the Chinese government.
Draft a national law on foreign aid
CIDCA will have to deal with another major challenge facing Chinese foreign aid – the national legal framework. Currently, there is no overarching national law to govern foreign aid in China and all activities in the field have been regulated by internal regulatory guidelines within the body that issued them. CIDCA has been tasked to elaborate upon a draft document of the aid law and coherent aid regulations for ministries and other government bodies tasked with executing aid projects. The agency is expected to lead coordination efforts to diminish the challenges until the gaps in the legal system are filled.
In terms of the execution of foreign aid programs, the agency’s role is limited – the responsibility for implementation on the ground still remains with the same Chinese ministries, commissions and agencies that were in charge in the old system led by MOFCOM, while the aid projects will still be implemented by Chinese companies. CIDCA’s role does not extend beyond the coordination and management of foreign aid delivery.
A look back at eighteen months’ work
Taking into consideration the ongoing reforms in the China’s foreign aid sector it is still too early to appreciate the efforts, financial figures of the distributed Chinese aid, as well as the results of the internal activities carried out and achieved by the newly formed agency.
External communication and building bridges with other international aid agencies and governments across the world has been a priority on the agenda of CIDCA’s executives who attended over 40 different meetings in 2019. This fact underlines the agency’s strategic mission to become the leading Chinese foreign aid coordinator.
Since its establishment in March 2018, CIDCA has announced 13 signed inter-state cooperation agreements with countries from Asia-Pacific, Europe and Latin America. The agency has also reported that several humanitarian aid missions to Africa have been carried out during the 18–month period since its establishment.
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