Aid Allocation Research Articles

Aid allocation with optimal monitoring: Theory and policy

We explore the implications of allowing a poverty-averse donor to monitor aid use within the familiar context of the needs vs. aid effectiveness tradeoff. The paper focuses on the optimal aid allocation between two countries when the donor simultaneously decides about aid shares and country-specific monitoring effort aimed at increasing the amount reaching the poor. Endogenizing aid effectiveness is shown to raise the poor’s income in the worse-governed country, yet not necessarily in the better-governed one, whereas the effect on country aid shares is essentially ambiguous. Those results still hold when the basic model is extended in various directions. Conventional aid allocation rules should be re-examined in their light.

Risks of AI Applications Used in Higher Education

As artificial intelligence (AI) tools become more widely used in higher education, we must pay attention to the risks that can emerge. AI projects, whether applied in classroom learning or used for decision-making regarding admissions, financial aid allocation, or hiring, must include attention to governance and compliance issues, regardless of the project’s scope and scale. Concerns highlighted in this work include transparency, user privacy, data confidentiality, data integrity, and system availability, however, we note that this is a non-exhaustive list of risks. In this paper, risk assessment is defined, and two examples of risk management frameworks, namely the United States National Institute of Standards and Technology Artificial Intelligence Risk Management Framework and the non-profit humanitarian effort ForHumanity’s Independent Audit of AI, Algorithmic, and Autonomous Systems are briefly described. We identify characteristics of AI applications that need to be assessed for vulnerabilities they may present, such as bias and discrimination. This paper aims to facilitate discussion among stakeholders about the risks that may be encountered from using AI in higher education, as well as to suggest ways developers, decision-makers, and users can mitigate these risks. Much discussion and published literature has focused on risk management frameworks designed for large organizations or enterprises or frameworks that do not consider risks specific to AI. We hope that decision-makers carefully consider the risks, perform due diligence when implementing AI applications, and create a plan for mitigating the risks. This research supports e-learning practice because students and faculty are embracing AI applications. Leaders and decision-makers in higher education need to be proactive in protecting their varied stakeholders. The paper asks what risks may be encountered by institutions of higher education when using AI tools and products in the classroom and for various aspects of decision-making and if published frameworks can mitigate these risks.

Development NGOs, Domestic Politics, and Foreign Aid Allocations

Development NGOs, Domestic Politics, and Foreign Aid Allocations

Aid allocation across the humanitarian-development-peace nexus: the role of fragility as a donors’ motive

Fragility continues to present major challenges to achieving sustainable development goals (SDGs). International aid, particularly the Official Development Assistance (ODA), is a critical source of finance to deliver humanitarian assistance, development projects, and peace operations in fragile contexts. This study analyses if and how donors are motivated by fragility in their aid allocation across the humanitarian-development-peace nexus. Employing the random-effect Tobit method, the role of fragility as a donors’ motive is analysed alongside three conventional categories of motives: self-interest, recipients’ needs, and merit. The empirical analysis demonstrates an association between aid allocation across the nexus and fragility, but also a great degree of heterogeneity depending on the donor and the pillar of the nexus. It also detects a significant difference between how the state of fragility correlates with aid allocation and how the degree of fragility does so.

Foreign Aid and Socioeconomic Development: The Perceptions of Aid in Nigeria

Arguments on aid effectiveness, which are predominately cross-country analyses, remain contestable, with little attention paid to the end-users of aid. Hence, this paper makes use of survey responses from four States in Nigeria to examine the ‘perceived’ impacts of foreign aid on socioeconomic development. The findings show that arguments on aid effectiveness will remain contestable. This is evident even among end-users of aid. While people with lower socioeconomic status are more optimistic about the impacts of aid, this is not applicable across all States. Therefore, aid allocation should not be ‘a one-size-fits-all approach’. Hybrid systems that involve end-users are imperative.

U.S. Development Assistance, Democratization and State-Building in Bosnia and Herzegovina

This article investigates the U.S. development assistance role in democratization, state-building and sustainable growth in Bosnia and Herzegovina. The OECD and USAID reports and selected projects (2015-2022) were used to examine and analyze the U.S. development assistance in the democratization process and state-building. The statistical data on the U.S. aid allocation and projects comes largely from the OECD's annual publications and USAID reports. Because of different periods, approaches and priorities, this paper placed the U.S. development assistance in the historical context. The analysis of different democratization and state-building projects indicated the extent to which the programs implemented have generated desired progress and development.

Examining aid fragmentation and collaboration opportunities in Cambodia’s health sector

BackgroundCambodia’s health sector faces significant challenges exacerbated by aid fragmentation, where development aid is dispersed among numerous small, uncoordinated projects. This study examines the distribution of health sector aid among Cambodia’s principal donors to identify priorities, overlaps, and potential collaboration opportunities, addressing the urgent need for aid efficiency and alignment with national health priorities.MethodsUtilizing OECD datasets and the Herfindahl-Hirschman Index (HHI) for the years 2010–2021, this study quantifies aid fragmentation within Cambodia’s health sector. It analyzes aid allocations from the top five donors—United States, Australia, South Korea, Japan, and Germany—across various health projects and initiatives, evaluating the extent of fragmentation and identifying areas for potential donor collaboration.ResultsThis study’s findings highlight a pervasive issue of aid fragmentation within Cambodia’s health sector, evident through the sector’s low HHI score. This indicates a widespread distribution of aid across numerous small-scale initiatives, rather than targeted, unified efforts. A notable example includes Japan and Korea, which exhibit lower HHI scores, indicating a more pronounced fragmentation in their aid allocation. These countries’ contributions are spread across various sectors without a dominant focus, contrasting with the United States’ significant dedication to infectious disease control. However, beyond this specific area, the US’s aid distribution across other priority health areas shows signs of fragmentation. This scattered approach to aid allocation, even amidst instances of focused support, illustrates the overarching challenge of aligning donor contributions with the holistic needs of Cambodia’s health infrastructure.ConclusionsThis investigation highlights the critical need for enhanced collaboration and strategic harmonization among international donors to mitigate aid fragmentation in Cambodia’s health sector. It underscores the importance of adopting integrated and priority-aligned aid strategies to improve the efficiency and impact of health aid. By fostering synergistic partnerships and harmonizing donor efforts, there is a potential to create a more cohesive support framework that resonates with Cambodia’s comprehensive health requirements and contributes to sustainable health outcomes. Such harmonization not only aligns with Sustainable Development Goal 3 by optimizing health services and outcomes but also strengthens global partnerships under Sustainable Development Goal 17, fostering a unified approach to international development.

Optimizing Decision-Making for Aid Allocation in Underdeveloped Regions Using the MOORA Method

The allocation of assistance for the Family Hope Program is a process that requires precision to ensure that assistance is given to those most in need. This research develops a Decision Support System (DSS) using the Multi-Objective Optimization on the Basis of Ratio Analysis (MOORA) method for optimizing the selection of beneficiaries in disadvantaged villages which includes criteria used including education, toddlers, pregnant women, disabilities, elderly, income, employment, number of dependents, and house size. Each criterion is normalized and given a weight according to its level of importance. The results show that alternative A2 has the highest optimization value with Yi of 0.254, followed by A8 (0.208) and A5 (0.204). In contrast, alternatives A3 (0.029) and A10 (0.035) have the lowest optimization value. Matrix normalization and criteria weights show the significant influence of the criteria of education, pregnant women, elderly, income, number of dependents, and house size in the selection process. The implementation of DSS with the MOORA method is proven to increase efficiency and accuracy in the selection process of Family Hope Program beneficiaries, reduce subjective errors, and ensure assistance is channeled to those who really need it. Therefore, the MOORA method is recommended as an effective tool to optimize social assistance allocation, increase transparency, and reduce bias in decision-making.

Interest, Need, or Reputation? Determinants of Qatar's Foreign Aid

Abstract The literature on the motivations behind emerging donors’ foreign aid contributions—with the exception of larger countries such as China, India, Brazil and Turkey—lacks original data and empirical analyses. This article addresses this gap by providing a novel, detailed dataset of the foreign aid allocations of one resilient, relatively small emerging donor, Qatar, for the period from 2014 to 2021. The contents of our database, which we dub Qatar Aid Database, encapsulate the features of Qatar's international aid. To illustrate our dataset's efficacy, we investigate whether Qatar's foreign aid operations aim to satisfy donor interests, recipient needs, or something else. Our empirical findings affirm that although Qatar's aid allocation decisions prioritize recipient needs, its aid provision depends more on Qatar's foreign policy interests in the targeted countries.

Words that matter: A machine learning analysis of United Nations General Assembly speeches and their influence on aid allocation

This article studies whether countries’ speeches at the United Nations General Assembly (UNGA) matter for international aid allocation. I use a supervised machine learning algorithm called Wordscore and 7,533 different statements from 198 countries made in the period from 1975 to 2018 to measure countries’ preferences from text. Then, by employing panel regression analysis and the synthetic control method, I find considerable evidence that countries’ preferences derived from speeches affect aid allocation. Both the US and Russia provide more aid to countries that present speeches more in line with their current agenda and preferences.

Elusive collaboration? The determinants of lead donorship in international development

AbstractLead donorship is a condition of sustained outsized responsibility by one foreign aid donor country for giving aid to a developing country. Prior research argues that lead donorship can either be a product of donors collaborating to carve out spheres of influence to maximize non-development foreign policy goals or else of donors buck-passing responsibility for addressing recipient needs. Which is it? This study seeks to answer this question using theory-driven expectations about when and where lead donorship should arise if donors cooperate or systematically fail to do so. It further develops novel measures of foreign aid’s public goods characteristics and donors’ marginal returns from giving aid that should help triangulate conditions under which we can expect lead donorship to arise due to cooperation or else its absence. Estimates from a flexible semi-parametric modeling strategy show that when and where lead donorship has the highest probability of occurring is consistent with systematic cooperation failure in the allocation of foreign aid. Various robustness checks are done and alternative explanations are also discussed. These findings provide insight into ongoing policy debates about donor cooperation and aid effectiveness and raise questions about what deeper strategic logics preclude donor cooperation.

Politicization of Humanitarian Aid Allocations by Global Donors and Implications on Selected Non-Governmental Organisations’ Performance in Nigeria

Organisations that focus on humanitarian concerns usually rely on voluntary donations and largesse from multiple ends, without which their operations cannot be implemented. The premise of the paper was established on the fact that humanitarian aid is ultimately complemented by humanitarian funding, which is in itself reliant on donors from multiple ends. As a result of this, it has become difficult to divorce the political nature of the influence of donors’ interests in the allocation and focus of the humanitarian funding offered. This has resulted in a dilemma. The study focused on the issue of the politicization of humanitarian funding and how it affects the delivery of humanitarian aid in selected non-governmental organisations in Nigeria. Using a qualitative approach, 10 participants, working with different NGOs in Nigeria and occupying different positions, were recruited to derive data on the topic. Semi-structured interviews were utilised. The data obtained were analysed via thematic analysis to decode the data and derive recurrent themes from it. The results of the study showed that there is a consensus among the participants on the virtually inevitable role of politics in the acquisition and subsequent distribution of humanitarian funding to address issues related to conflicts and disasters among diverse communities across Nigeria. This often negates the principle of independence and autonomy that NGOs should work by where, in most cases, the acceptance of humanitarian funding from donors often leaves their hands tied. The study offered recommendations along the lines of creating mechanisms of transparency and accountability from both donors and recipient NGOs, having local NGOs seek support from their communities to be more involved in humanitarian missions, and heightened collaboration between humanitarian actors to make funding easier, more effective, and less politicized.

Right to Development and the Role of DAC OECD Foreign Aid to Development in Africa

When the concept of the human right to development was articulated in Africa in the late 1960s and early 1970s, the idea was not to ask for development aid but to assert the right to self-determination, or even the right to genuine liberation from continued external domination, in order to assume sovereign control and determine the continent’s own developmental destiny. However, in the course of evolution, the idea of the right to development has been distorted to some extent and has been thwarted in order to imply recourse for its realization. Developed countries were required to provide 0.7% of their annual gross domestic product as foreign aid to assist developing countries, including African countries, in their efforts to achieve comprehensive development. Over more than six decades, from 1960 to 2022, the Development Assistance Committee of the Organization for Economic Cooperation and Development (DAC OECD) donor countries provided a total of USD 1.23 trillion in development assistance to 48 recipient countries in Africa. This paper examines the extent to which the foreign aid allocations have contributed to development of recipient countries in Africa. The findings illustrate that despite the continued shipment of foreign aid to Africa, impoverishment and underdevelopment have worsened across the continent, raising the question of why Africa should remain trapped in the DAC OECD “dead aid” conundrum when alternative, mutually beneficial development cooperation mechanisms could be explored.

Determinants of study motivation of undergraduate university students in Chile

ABSTRACT Students’ academic motivation is a critical factor in understanding the choices that they make over the course of their educational careers. The purpose of this research is to identify the factors that determine students’ motivation to complete their undergraduate studies. Working with a sample of 2032 undergraduate students from 11 universities in Chile, an ordinal logistic regression model was constructed to estimate the effect of students’ sociodemographic characteristics, their academic performance and the characteristics associated with the university and the degree program they were pursuing, on their academic motivation. The results show that students’ motivation to complete their studies is determined primarily by their socioeconomic status, the allocation of financial aid, their relationship with professors, and their level of integration into the social and academic environment of the university. Students with low socioeconomic status have higher levels of academic motivation compared to those with higher level of status. However, there is no difference in the level of motivation among students in different fields of study. The paper concludes that the significance of socioeconomic status as a factor influencing motivation may be due to the promise of social mobility associated with obtaining a university degree, which provides access to better jobs and salaries. Additionally, a high degree of integration in the university and good relationships with professors can increase motivation by alleviating anxiety during the transition from university to the labor market.

A study on the allocation of financial aid from OECD/DAC donors focusing on climate change adaptation using the Panel Double Hurdle Model

A study on the allocation of financial aid from OECD/DAC donors focusing on climate change adaptation using the Panel Double Hurdle Model

Political ideology and big pharma in the allocation of health aid

ABSTRACT Building on the framework of Suzuki (2020), we examine to what extent a change in the governing party in donor countries influences the composition of health aid to developing countries. We find that left of centre governments allocate less health aid to purchase pharmaceuticals but not in donor countries with larger pharmaceutical industries.

Impact of Migration On National Security: A Case Study of Border Control Policies in Japan

Purpose: The aim of the study was to analyze the impact of migration on national security: a case study of border control policies. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Japan's strict border control policies effectively limit irregular migration and unauthorized entry, enhancing national security. However, concerns arise regarding potential human rights violations, particularly for asylum seekers and refugees. Balancing security with humanitarian considerations is crucial for protecting migrants' rights. Unique Contribution to Theory, Practice and Policy: Securitization theory, rational choice theory & social identity theory may be used to anchor future studies on analyze the impact of migration on national security: a case study of border control policies. Implement more transparent and accountable aid allocation mechanisms that prioritize long-term investments in governance reform, economic development, and social inclusion to address the root causes of instability in recipient countries. Advocate for the adoption of coherent and principled aid allocation policies that balance economic interests with the promotion of democratic governance and human rights protections in recipient countries.

Foreign Aid Allocation and Regime Stability: A Cross-National Study in Indonesia

Purpose: The aim of the study was to analyze the foreign aid allocation and regime stability: a cross-national study in Indonesia. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study in Indonesia revealed that foreign aid allocation plays a crucial role in regime stability. Increased foreign aid, especially directed towards economic development and infrastructure, positively impacted regime stability. Conversely, political conditionality attached to aid often led to destabilization, fostering domestic opposition and unrest. Unique Contribution to Theory, Practice and Policy: Dependency theory, principal-agent theory & institutional theory may be used to anchor future studies on foreign aid allocation and regime stability: a cross-national study in Indonesia. By pooling resources, sharing expertise, and aligning objectives, stakeholders can leverage synergies and address governance challenges more effectively. Donor countries should adopt more coherent and principled aid allocation policies that prioritize the promotion of democratic governance, human rights protections, and inclusive development.

Germany's allocation of bilateral adaptation aid: Understanding the role of institutional context in shaping allocation decisions

Allocation of adaptation aid to the countries most vulnerable to the adverse effects of climate change is a topic that has received increasing attention in global climate governance in recent years. Studies have attempted to explain the role of vulnerability as a determinant of adaptation aid using largely quantitative methods and focusing on recipient characteristics with varying results. I argue that we cannot assess the role of vulnerability in allocation decisions without paying attention to the decision-making process itself. This article examines how the allocation of bilateral adaptation aid to developing countries is shaped by donors’ institutional context, consisting of the institutional identity, institutional beliefs and allocation stages. Through a case study of the allocation process of the German Federal Ministry for Economic Cooperation and Development, I show that these three elements of the institutional context govern how vulnerability is understood and considered in the allocation of adaptation aid.

Where have Ukrainian refugees gone? Identifying potential settlement areas across European regions integrating digital and traditional geographic data

AbstractThe escalation of conflict in Ukraine has triggered the largest refugee crisis in Europe since WWII. As of early April 2024, over 5.9 million people have fled Ukraine. Large‐scale efforts have been made to identify the major receiving countries. However, less is known about the subnational areas within host countries where refugees have migrated. Identifying these areas is key for the appropriate allocation of humanitarian aid. By combining digital Facebook API data and traditional data from Eurostat, this paper aims to identify and characterise potential settlement areas of Ukrainians across the main destination countries in Europe. We identify high concentrations of Ukrainians in urban areas with a preexisting diaspora and tight labour market conditions across southern, northern‐west and central Poland and the city of Prague in the Czech Republic. We also find potential settlements in key urban agglomerations with a moderate diaspora and high levels of unemployment in Spain. Only in Romania, refugees seem to have settled in rural areas which show a moderate diaspora but low levels of unemployment. Potential settlement areas in Germany, Italy and the United Kingdom are spread across the country. Surprisingly, we do not identify potential settlement areas in bordering regions with Ukraine within neighbouring countries, suggesting that refugees may have used them as transit points. Our findings point out that different packages of humanitarian assistance may be needed according to the number of refugees and the characteristics of settlement areas.