The Impact of Namibian Reclassification as an Upper-middle Income Country on Official Development Assistance

ABSTRACT

The aim of the study was to analyse the impact of Namibian reclassification as

an Upper Middle Income Country on Official Development Assistance (ODA). This study

was prompted by the negative perception that was going on in the country about the

reclassification and how it reduces ODA while on the contrary having the knowledge that

Namibia is striving to become an Industrialised country with a high income status by

2030.

In order to address the issue of the negative perception about the reclassification

as the contributor to reducing ODA, the research approach selected was a descriptive

qualitative interpretivist approach. A mix of primary and secondary data analysis was

employed to gather information on the subject matter. Interviews were conducted with

experts in the field of foreign aid to obtain views and feelings on the reclassification and

how Namibia could better manage ODA.

However the study revealed that although there were some donors who phased

out traditional assistance to Namibia, the reason is not necessarily because of the

reclassification. Hence the perception that the reclassification reduces ODA could not be

proven, since ODA flows to Namibia after the reclassification were even higher than

before.

Given that ODA will eventually reduce because of global changes in the ODA

architecture, the study recommended that Namibia start positioning herself to influence

the ODA architecture in her favour. It is also recommended that the National Planning

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