On November 27, 2025, a conference was held at the Warsaw School of Economics (SGH) to discuss the upcoming book of the same title, “International Development Assistance in the Contemporary World. Framework of Engagement: Poland and Other Players.” The event was organized by the Department of Economic Policy and Monetary Theory within the Institute of Political Economy, Law, and Economic Policy, and was held under the patronage of the Rector of SGH, Professor Piotr Wachowiak, Ph. D. (SGH); the World Bank; and the National Bank of Poland.
The conference was opened by: Professor Ryszard Bartkowiak, Ph.D. (SGH), Director of the Institute of Political Economy, Law, and Economic Policy; Professor Agnieszka Chłoń-Domińczak, Ph. D. (SGH), Vice-Rector for Research and Professor Joanna Wielogórska-Leszczyńska, Ph.D. (SGH), Dean of the College of Management and Finance at SGH. During the opening, the importance of the issue raised by the authors of the book regarding the challenges facing countries providing international development assistance, including Poland, was emphasized. An outline of the book’s structure was presented by the chairman of the conference’s Scientific Council, Professor Zbigniew Polański, head of the Department of Economic Policy and Monetary Theory (The Scientific Council consisted of: Professor Ryszard Bartkowiak, Ph.D. (SGH); Professor Agnieszka Chłoń-Domińczak, Ph. D. (SGH); Dr. Małgorzata Korczyk (SGH); prof. Branko Milanovic (City University of New York); Dr. Michał Rutkowski (World Bank); Professor Piotr Wachowiak, Ph. D. (SGH); Professor Wielogórska-Leszczyńska, Ph. D. (SGH); Professor Katarzyna Zalas-Kamińska, Ph. D. (University of Wrocław).
Professor Katarzyna Zalas-Kamińska, Ph. D. (University of Wrocław) and Dr. Michał Rutkowski (World Bank) are the authors of the chapter entitled “Between Cooperation and Competition: International and Polish Development Assistance in a Changing World.” Dr. Michał Rutkowski began his presentation of the same title by presenting a broad theoretical framework for considering the behavioral strategies of countries providing international development assistance, which formed the basis for the authors’ empirical analysis.
The speaker briefly discussed the specifics of two game theory concepts used in the study: the prisoner’s dilemma and the snowdrift dilemma, concepts understood as two patterns of donor behavior. This approach is justified by the fact that countries’ activities in the sphere of development aid resemble a strategic game, where strategies of cooperation and competition coexist, shaping the behavior of donor countries and thus influencing its effectiveness. Dr. Rutkowski demonstrated that when looking at donor activities through the prism of the prisoner’s dilemma, one can discern the sources of aid ineffectiveness (manifested, among other things, in the overlapping funding of different institutions for the same purposes, often in the same regions at the expense of underfunded areas) as a result of the adoption of a betrayal strategy by donor countries. This occurs in a situation of lack of trust, when donor countries prioritize their visibility and brand in the world of international aid and pursue geopolitical goals rather than focusing on solving the problems of developing countries. Dr. Rutkowski emphasized the importance of the lack of coordination of international development aid as a phenomenon contributing to the formation of the Nash equilibrium shown, as aid overlap often occurs when countries fear competitors will displace them in a given area. As an example of political competition among donors, he presented the education system in Kenya, where donors focused on funding education in urban areas (visible and relatively developed) at the expense of rural areas. Solutions such as those contained in the Paris Declaration were intended to counteract this type of phenomenon.
Dr. Rutkowski also showed how donor behavior can be analyzed from the perspective of the snowdrift dilemma. This concept reveals the likely motivations behind a donor’s decision to withdraw aid from a given region in the hope that another country will solve the existing problems. If solving a development problem is treated as a public good, the withdrawing country benefits from the efforts of others without incurring the costs (a free rider problem). As an example, the speaker cited the US freeze on international aid funding in 2025.
To avoid these threats, Dr. Rutkowski emphasized the need to adopt solutions that foster stronger international cooperation in the area of development aid. These include the creation of pooled funds, the inclusion of recipient governments in the decision-making process regarding the allocation of funds, and the development of multilateral aid within institutions such as the World Bank (e.g. IDA) at the expense of bilateral aid.
Professor Katarzyna Zalas-Kamińska presented the empirical part of the study, using the example of Poland’s aid activities as a medium-sized donor in three of the ten countries where it operates (Georgia, Tanzania, Lebanon). She explained the criteria for selecting aid recipients, pointing to the geographic diversity and differences in the level of development of these countries as the most important reasons for their selection. She comprehensively discussed the sources from which the data for the study was obtained and presented the results.
She focused on showing the duality of Poland’s motives in providing international aid: responsibility for solving global problems and pursuing its own interests. Professor Zalas-Kamińska emphasized the fact that Poland finds itself between strategies of cooperation and competition. Despite the significant activity of international donors in providing aid to the three countries mentioned, Poland also strives for visibility, which means it is engaging in a competitive strategy. For example, in Georgia, international aid focused on implementing European standards in the defense of democracy and efficient governance. Poland undertook similar activities. In Tanzania, aid overlapped in the areas of education and healthcare, while in Lebanon, it overlapped in humanitarian aid, primarily in improving the living conditions of refugees.
The speaker demonstrated the limitations of bilateral aid, which is often intended to serve the interests of donor countries rather than address the problems of recipient countries. Therefore, a greater focus on the needs of the latter should be placed on avoiding ineffective aid programs. According to Professor Zalas-Kamińska, this is an argument for greater country involvement in multilateral aid that fosters cooperation. In this regard, Poland’s increased involvement in financing aid through the International Development Association (IDA) within the World Bank is noteworthy.
Following the presentation, a lively debate ensued regarding the pros and cons of multilateral and bilateral aid. The lack of influence donor countries have on the allocation of funds through international institutions and the lack of donor visibility in the international arena were cited as weaknesses of multilateral aid. On the other hand, the prisoner’s dilemma trap in implementing bilateral aid was highlighted. Dr. Rutkowski noted that the view on this matter often depends on the ministry responsible for international aid: if the Ministry of Foreign Affairs is responsible, bilateral aid is preferred; if the Ministry of Finance is responsible, multilateral aid is preferred. Dr. Hab. Zalas-Kamińska added that in this regard, one could lose sight of an important aspect of the issue: the essence of development aid, which should not be part of a “soft power” strategy.
After a series of questions from the audience and a coffee break, the presentation entitled “Global Aid Architecture: Mega Trends and Aid Effectiveness in the 21st Century” was delivered by Mr. Long Hanhua Wang (Finance Officer – Development Finance International Development Association IDA, The World Bank Group), who co-authored the chapter with Akihiko Nishio (Vice President of the World Bank for Development Finance) and Francisco G. Carneiro (Manager of Operations Dfi – DFFPO).
The speaker began by emphasizing the role of IDA in the international development assistance system and explained the methodology and terminology used in the study. He then focused on issues related to Official Development Assistance (ODA) within the World Bank, which provides significant support to developing countries. A significant phenomenon is the increase in ODA commitments to “Emergencies at Home and Abroad”. In 2000-2002 they accounted for 8% of total ODA commitments, and in 2021-2023, they increased to 24% of ODA volume. A serious challenge for developing countries is the cuts in ODA from traditional donors (countries associated with the Development Assistance Committee DAC) by 9%-17% in 2025.
After analyzing the data, Mr. Long Hanhua Wang presented four megatrends that he and his co-authors deemed particularly dangerous for the architecture of the international aid system. The first concerns the growth in the number of donor countries and other entities pursuing aid goals. Between 2004 and 2008, the number of donor countries was 64, rising to 117 between 2019 and 2023. As for aid agencies, their number increased from 227 to 613 during the presented timeframe. Each entity has its own reporting systems and accounting requirements, which increases transaction costs for recipient countries.
The second trend is Fragmentation, which stems from the first. As Mr. Long Hanhua Wang emphasized, the increase in donor – founded activities are accompanied by a decline in the financial value of aid projects. The volume of ODA grants decreased by almost half between 2021 and 2023 compared to 2000 and 2002. The third megatrend ( Less Leveraging) refers to the reduced use of financial leverage in development aid due to the stagnation of institutions such as multilateral development banks (MDBs), which combine public and private capital to increase aid effectiveness. The final megatrend (Circumvention) is the problem of the recipient government being circumvent in the management of aid funds by various institutions (e.g., NGOs or donor country entities). In 2007-2009, beneficiary governments distributed 39% of aid, while in 2021-2023, this figure dropped to only 20%.
This situation means that developing countries have fewer aid funds at their disposal and rising costs of administering them, which requires taking actions such as creating international forums bringing together donors and recipients to improve communication and increase recipient governments’ control over the spending of funds.
Regarding Poland, Mr. Long Hanhua Wang emphasized the fact that as a country that has broken out of the middle-income trap and is the sixth-largest economy in the European Union, it will certainly play an increasingly important role in the international aid system in the future, as evidenced by Poland’s increased involvement in IDA financing.
The presentation was followed by a discussion on the future of international aid management in light of the diminishing role of the DAC countries. The debate addressed the issue of increasing military spending in Europe as a reason for reduced development aid and the influence of US domestic politics as a factor limiting US aid. Furthermore, incorrect assessment of development needs by both donors and recipients may result in some regions being omitted from funding. The role of capital markets in aid financing was also discussed.
The conference was closed by Prof. Zbigniew Polański after discussing technical issues concerning the book.
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