A Comparative Study of Traditional Donors and Non-traditional Donors in Sri Lanka

Abstract

This article examines subnational aid allocation patterns during the postwar period in Sri Lanka, focusing on whether war-affected areas receive aid. We use geocoding, mapping, and econometric analysis to understand whether war-affected districts received more aid than others after controlling for economic development. The article uses geocoded aid projects comparing the aid allocation priorities of the People’s Republic of China (PRC) as a bilateral donor and World Bank and Asian Development Bank as multilateral donors. The PRC and World Bank aid projects’ geocoded data come from AidData, while we geocoded Asian Development Bank projects at the ADM2 level. The data covers 2002–2014, both years included. The study finds that, in general, donors do not respond to the needs of the poorer and war-affected districts, which affects reconciliation and, thereby, long-term sustainable peace. Additionally, we find that China aid project allocations are motivated by domestic politicians, whereas that may be different for multilateral aid projects.