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ITEC) Programme 1 CENTRE FOR POLICY RESEARCH Premier think tank shaping policy debates since 1973 50 Years of Indian Technical and Economic Cooperation Indian Development Cooperation Research Report January 2015 The project on Indian Development Cooperation at the Centre for Policy Research is supported by the Asia Foundation. The views expressed by the author(s) do not necessarily reflect those of the Foundation or the Funder. 50 Years of Indian Technical and Economic Cooperation A Report January 2015 CONTENTS Preface i Introduction The History and Evolution of the Indian Technical and Economic Cooperation (ITEC) Programme 1 Country Profiles Afghanistan 10 Bhutan 13 Chile 14 Ethiopia 16 Myanmar 17 Namibia 19 Papua New Guinea 21 Vietnam 23 Institute Profiles The Barefoot College 25 Central Institute of Tool Design 28 Entrepreneurship Development Institute 30 The Indian Institute of Management (Ahmedabad) 31 Key Recommendations 33 About IDCR 34 IDCR Report: 50 Years of Indian Technical and Economic Cooperation i PREFACE In 2014, the Indian Technical and Economic Cooperation (ITEC) programme celebrated its 50th anniversary, marking five decades of tremendous growth. In its inaugural year, 1964–65, ITEC offered technical and economic training in India to 80 government officials from other developing countries. By 2014-15, ITEC was offering training to more than 10,000 candidates from 161 countries, bringing the total number of people trained under ITEC since its inception to more than 50,000. The Indian ITEC programme has addressed the needs of generations of civil servants and policy makers from countries across South Asia, Africa, South America, and Southeast Asia, drawing on various aspects of India’s own socio-economic development. Yet many of its successes remain little known both within and outside of India. To address this critical gap in understanding India’s growing development assistance, the Indian Development Cooperation Research (IDCR) initiative at the Centre for Policy Research, New Delhi, undertook a detailed study of the ITEC programme, with grant support from The Asia Foundation. The study was conducted between May and December 2014. IDCR’s analysis of countries, institutes, and individuals—including former and current students and foreign service officers—provides a nuanced understanding of ITEC and makes important recommendations to ensure the programme is robust and contributes meaningfully to India’s current regional goals. Instituted through a cabinet note on September 15, 1964, ITEC had relatively modest beginnings, but has grown in size and diversity of offerings, particularly over the past decade. Although India has long had development knowledge to share with other countries, it was unable to finance large-scale development projects abroad until the early part of this century. The cost-effective ITEC programme thus emerged as the main delivery mechanism of Indian aid in the 1960s. When India’s economy liberalized during the 1990s and 2000s, India’s development assistance budget began to grow and ITEC was joined by a range of assistance programmes. With more resources available, India increased its efforts to build development partnerships by extending lines of credit, project assistance, and more budgetary loans for road and rail infrastructure projects, housing development projects, information technology-related projects and hydropower plants, among others. By 2014-15, the Government of India’s allocations to technical and economic cooperation amounted to less than three percent of India’s overall development assistance budget. Yet despite representing a smaller share of India’s overall development partnerships, the ITEC programme continues to remain a significant part of India’s overall development partnership abroad. This is in large part due to ITEC’s continued emphasis on a demand-driven approach, which allows ITEC partner countries to leverage the programme to address self-identified lacunae in their socio-economic development plans. Further, the generations of civil servants and policy makers trained through ITEC have helped spread positive perceptions of India, translating into broader mutual political, economic and geo-strategic benefits for India and ITEC partner countries. The countries analysed in this report are not necessarily those that receive the most ITEC slots. Similarly, the institutes the report has focused on are not necessarily those that train the most participants. Public data on the ITEC programme was sparse and efforts to obtain information through official channels did not always prove successful. Data constraints have largely determined the choices of the countries and institutes analysed. Building on synthesised data and interactions with a wide range of stakeholders in the ITEC programme, this report provides an unprecedented understanding of India’s technical and economic cooperation at a time when the scope of training offered and number of countries and participants in the ITEC programme continue to grow. We hope that this report will contribute towards better understanding of a programme that has done much to share India’s development experiences with other countries, has engendered goodwill abroad, and has helped further India’s political and economic diplomacy. Rani D. Mullen Director, Indian Development Cooperation Research (IDCR) Initiative Centre for Policy Research New Delhi January 2015 Please note that the findings of this report, including its recommendations, do not necessarily reflect the views of the Centre for Policy Research or The Asia Foundation. 1 IDCR Report: 50 Years of Indian Technical and Economic Cooperation The History and Evolution of the Indian Technical and Economic Cooperation (ITEC) Programme Shortly after gaining independence on August 15, 1947, India began engaging with other countries through development partnerships. Social and economic advancement was seen in India and other countries emerging from the yoke of colonialism as the key to modernization and development. In addition to finan- cial resources, developing countries needed access to technology and technological expertise in order to foster socio-economic development. Given independent India’s own economic constraints as a developing country and New Delhi’s consequent inability to fund large-scale development projects abroad, India largely focused on building development partnerships by sharing technical and industrial expertise gained and lessons learned. During the 1950s India’s cooperative efforts at sharing their expertise with other countries in Asia, Africa and even Latin America took the form of cost-effective measures like providing training, deputing experts, and undertaking small scale development projects. For example, India provided training to Bhutanese nationals in river gauge and rain gauge observations in 1956 and training scholarships to Afghan musicians in 1958. India’s focus on building capacity in Asia and Africa stemmed from an understanding that countries of the Global South had a responsibility towards each other to foster development.1 This shared sense of responsi- bility among countries of the Global South to share development experiences and learn from each other also informed India’s decision to engage in cooperation through multilateral initiatives like the Colombo Plan of 1950. India started providing development cooperation and technical and economic training shortly after attaining independence. By the early 1960s the multiplicity of development assistance programmes led the Indian government to institutionalize its development cooperation. On September 15, 1964 the Indian Technical and Economic Cooperation (ITEC) program was founded by the Indian Cabinet as the main development assistance program of the Government of India. Indian Prime Minister Jawaharlal Nehru, who also held the portfolio of the External Affairs Minister, was the chief visionary behind the new ITEC pro- gram, though the program was launched after the demise of Nehru by Prime Minister Lal Bahadur Shastri. The ITEC programme was initially intended as India’s main vehicle for sharing its lessons on development with other developing countries and was essentially India’s bilateral assistance programme through the end of the 20th century. For example, India’s lessons from its Green Revolution of the 1960s and the White (dairy) Revolution of the 1980s led to an increase in demand from other developing countries for agricul- tural training in India. ITEC resources were also used, as early as the 1960s, to fund regional and inter-regional technical and economic assistance programmes such as the Economic Commission for Africa. By the 21st century ITEC resources were contributing to the growing numbers of regional and multilateral organizations such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), the Indian Ocean Rim Association (IORA), and the African Union (AU). Not only has the ITEC programme evolved from a largely bilateral assistance programme to include funding for regional and multilateral organization, the breadth of Indian development cooperation has also evolved substantially. From its inception in the 1960s when ITEC was largely focused on sharing technical and economic expertise, Indian development assistance under ITEC also included small numbers and amounts of grants and loans for development assistance in the areas of disaster relief, as well as agricultural and industrial development. However, grants and loans to other countries was
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