A development fund supported by three emerging donors offer financing without conditions or expectations to be paid back in an attempt to provide an alternative source of aid to poor countries.
The idea behind the India-Brazil-South Africa Fund for Poverty and Hunger Alleviation, which was established in 2004, is “to support viable and replicable projects, based on capacities in the IBSA countries [referring to the fund’s donors] and successes experienced in the IBSA countries,” Fernando Sena of the Brazilian embassy in South Africa said, as quoted by IPS News.
The projects, he added, should be “needs-driven, as well as locally owned and managed.”
Brazil, India and South Africa each contributes $1 million annually to the fund. Support from the fund “is not a loan and we are not expecting [recipients] to pay as us back,” Sena said.
“We are talking about three developing countries [forming IBSA]. We also have our own needs but what drives us is to show solidarity with other countries,” he told IPS News.
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