digplanet beta 1: Athena
Share digplanet:

Agriculture

Applied sciences

Arts

Belief

Business

Chronology

Culture

Education

Environment

Geography

Health

History

Humanities

Language

Law

Life

Mathematics

Nature

People

Politics

Science

Society

Technology

[1]

A counterpart fund is a technique for turning foreign aid into reserves of domestic currency. They were used by the UNRRA, and the Marshall Plan in the rebuilding of Western Europe after the Second World War, and today remain a common technique for delivering developmental assistance.

One method of setting up a counterpart fund is to have businesses in the country receiving aid that want to import a commodity place an order with their government and pays for the import in their local currency. The government then uses some of their foreign assistance, still in the foreign currency, to pay for the goods. This makes importing far easier as the unstable currencies in developing nations are often of little international value. Agreements are also usually signed so that these imports can only come from the nation that gave the aid, benefiting the donor's export industry. Another method is for goods to be donated to a developing nation's government and for them to then sell the goods to the population, and use the proceeds to set up a fund.

The recipient government is also then left with the original payment in its domestic currency. These payments are amalgamated into a fund that is used to further fund development. This can take the form of investments in infrastructure or industry, paying down the debt or deficit, or stabilizing the currency. The investment of these funds can take the form of loans rather than grants, creating a permanent pool of investment capital. For instance, Germany's Marshall Plan counterpart funds were used to set up such an investment fund, and it is still in operation today.

References[edit]

  1. ^ Greg Behrman, The Marshal Plan, Aurum Press Ltd., 2008, pp. 178,179,232.

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Counterpart_fund — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
3166 videos foundNext > 

Govt Okays Fertilizer Blending

The Ministry of Agriculture has confirmed that private companies are allowed to blend their products using government procured fertilizer. Agriculture Secret...

$5,580,000,000 Bill Keeps Marshall Aid Flowing AKA Aid Flowing To Western Europe (1949)

Washington, USA and Le Havre, France. S.C.U. President Truman signing the Marshall Aid Bill. S.C.U. W. Averell Harriman and Paul Hoffman, E.C.A. administrato...

Washing pump in monitoring well

Project name: Capacity strengthening for groundwater planning and investigation in urban areas (short name: "Improvement of groundwater protection in Vietnam...

Iranian FM Zarif & his Iraqi counterpart Zebari giving press conference (Part 1)

Iran's foreign minister says the Iranian nation will not give in to any pressure over Tehran's nuclear energy program. "Unfortunately, the measures the US ad...

Pangasinan awarded as best LGU in the implementation of Credit Surety Fund

Lingayen- - - Pangasinan is again cited as the most outstanding local government unit (LGU) in the promotion of small and medium enterprises through the Cred...

Iranian FM Zarif & his Iraqi counterpart Zebari giving press conference (Part 2)

Iran's foreign minister says the Iranian nation will not give in to any pressure over Tehran's nuclear energy program. "Unfortunately, the measures the US ad...

Pag ibig Fund and Provident Benefits

For More Info: http://www.pagibigfund.gov.ph/ Pag-IBIG Fund guarantees the refund of member's total accumulated savings (TAV), which consists of the member's accumulated contributions, the...

Pag ibig Fund -house for sale

For More Info: http://www.pagibigfund.gov.ph/ Pag-IBIG Fund guarantees the refund of member's total accumulated savings (TAV), which consists of the member's accumulated contributions, the...

Iranian FM Zarif & his Iraqi counterpart Zebari giving press conference (Part 3)

Iran's foreign minister says the Iranian nation will not give in to any pressure over Tehran's nuclear energy program. "Unfortunately, the measures the US ad...

Pranab calls for top priority to India Saudi investment fund

investment fund, "to be jointly set up by the Public Investment Fund, Saudi Arabia, and a counterpart Indian agency.

3166 videos foundNext > 

34 news items

WorldStage

Nigerian Tribune
Sun, 31 Aug 2014 16:00:34 -0700

Aregbesola contended that this unproductive delay had its root in the non-operation of NIRSAL, stressing that “for our counterpart fund of N300 million in the N600 million QIIP 2, we made available our N9 million NIRSAL premium for its first year of ...
 
AllAfrica.com
Tue, 26 Aug 2014 17:11:15 -0700

Executive Secretary of the Universal Basic Education Commission (UBEC), Dikko Suleiman has blamed state governments for low basic education, adding that they were too complacent in providing their counterpart funds necessary for funding of education ...
 
Nigerian Tribune
Sun, 24 Aug 2014 16:00:18 -0700

Nigerian Tribune gathered that about N53 billion of the Federal Government intervention fund through UBEC had not been accessed by some state government as a result of their refusal to provide their requisite counterpart fund. Suleiman, however, said ...
 
The Guardian Nigeria
Thu, 14 Aug 2014 09:26:51 -0700

He highlighted the operational challenges to included irregular task force meetings at state and LGA levels, non or late release of state and LGA counterpart fund, non provision of pluses, non funding of health camps, poor attendance of LGA chairmen at ...
 
AllAfrica.com
Mon, 04 Aug 2014 06:24:33 -0700

He said Osun State government would provide counterpart fund so as to increase the number of beneficiaries to 400,000, adding that the state government would provide bank guarantee for the cooperative societies in the state to enable them access the ...
 
The Guardian
Mon, 11 Aug 2014 07:37:30 -0700

Umuahia — SINCE the death of the premier of the defunct eastern region of Nigeria Dr. Michael Okpara, who hailed from present Abia State, subsequent state governments that comprised the then eastern region have been grappling with returning ...
 
Nigerian Tribune
Sun, 31 Aug 2014 15:52:30 -0700

The minister disclosed that the FCT administration had already released its counterpart fund of N100 million, towards realising such grassroots projects. He said, “The FCT administration under my watch will continue to support any programme or project ...
 
AllAfrica.com
Sun, 17 Aug 2014 16:03:45 -0700

Indeed, they were built under the Amosun government because he was the one that offset the counterpart fund for 2008 and 2009, indeed up to 2011, which made the construction of such classrooms possible. Yes, we must play politics but let's weigh the ...
Loading

Oops, we seem to be having trouble contacting Twitter

Talk About Counterpart fund

You can talk about Counterpart fund with people all over the world in our discussions.

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!