Chains of Knowledge Creation in the Evolution of New Donors

Abstract

This article highlights the importance of contributions of emerging donors based on their knowledge creation during the time they receive aid, focusing on the two-way interaction between donors and recipients. A hypothetical model was developed to illustrate the two-way interaction in the process of knowledge creation, combining local and foreign knowledge, or explicit and tacit knowledge. Drawing on three detailed case studies, the article shows how four former aid recipients – China, Indonesia, Japan, and Thailand – nurtured the acquired knowledge, developed their own approach to development cooperation, and applied it to other countries. The study emphasises that created knowledge is a source of strength for emerging donors and can contribute in a unique manner to the development agenda in the era of the Sustainable Development Goals, because traditional donors basically lack this knowledge.