Aid Policy Research Articles

Communist Ideals to Capitalist Realities: Uncovering Kerala Model’s Struggle with Foreign Aid(ed) Dependency and Disempowerment of the Marginalized

This article analyses Kerala’s development model through dependency theory, highlighting its reliance on foreign aid and consequent policy constraints. It examines how tied loans eroded Kerala’s policy autonomy and social model, disproportionately affecting marginalized groups. The state’s financial crisis and strained central relations led to accepting loans with neoliberal conditionalities, undermining welfare policies. Using the World Bank-funded Jalanidhi project as a case study, it contextualizes Kerala’s aid dependence within global capitalism, where aid often acts as “euphemized domination.” It reveals the model’s vulnerabilities, interlinked with exploitative global relations, and advocates for economic restructuring fostering self-reliance and people-centered development.

Does donor country impact the efficacy of health aid?: Evidence from the COVID‐19 pandemic

AbstractDuring the coronavirus disease 2019 (COVID‐19) pandemic, many nations relied on unprecedented amounts of health‐sector aid to efficiently vaccinate their populations. These vaccines and supporting materials came from a variety of traditional and nontraditional donors, with the majority donor differing by recipient country. Previous research has examined the political benefits to donor states of providing health aid before and during the COVID‐19 pandemic. Less is known, however, about how recipients view health aid based on the donor and whether this impacts health aid resource use. This research aims to investigate whether recipient preferences over the source of health assistance affects the efficacy of aid, while using a novel vax‐score method to account for existing trends and predictors of vaccine uptake. Using COVID‐19 vaccine donation and uptake statistics collected by the Duke Global Health Innovation Center, the IMF, and the World Health Organization, we compare vaccine uptake across many vaccine recipient countries to investigate the impact of vaccine origin (Chinese vs. non‐Chinese source). We find that while increased donated vaccines per capita significantly raises the proportion of the population vaccinated at 12 months, the source of the donated vaccines has no impact. Previously reported recipient‐side concerns over vaccine origin have no impact on population‐level uptake at 12 months. Additionally, we observe that a vax‐score metric derived from vaccine uptake of a suite of childhood vaccines predicts COVID‐19 vaccine uptake beyond differences in GDP and GDP per capita. These results have implications for health aid policy and future research into foreign aid efficacy.

How do donors integrate climate policy and development cooperation? An analysis of the development aid policies of 42 donor countries

ABSTRACT This article assesses how donor countries integrate climate action into their development aid policies. An analytical framework is developed for the systematic comparison of development aid policies along three dimensions: hierarchy of policy objectives, types of measures the donors implement, and linkages to international climate negotiations. Analyzing the development aid policies of 42 donors, we find that only three have redesigned their development aid policies to fully integrate climate policy concerns. Instead, donors treat climate change as a thematic priority area. This includes several donors that are currently not obliged to provide climate finance under the UNFCCC. Furthermore, five major donor countries emphasize the use of diverse foreign policy tools to support climate action in developing countries. Importantly, we identify how other development goals (poverty, gender) are integrated with climate policy goals. Only two donor countries clearly separate development aid and climate finance. Luxembourg states that its climate finance pledge is additional to development, while New Zealand has a separate climate finance strategy where the allocation of funds is based on climate mitigation effectiveness concerns.

The Current Situation of Financial Aid Policies and Social Support for Impoverished College Students in China: a Literature Review

The Current Situation of Financial Aid Policies and Social Support for Impoverished College Students in China: a Literature Review

Kontribusi Pemerintah Kota Bitung dalam Memajukan Pendidikan Non-Formal melalui Bantuan Sosial kepada PKBM

This research illustrates how the Bitung City Government's policy through social assistance for the distribution of the implementation of non-formal education programs in the center of community learning activities in an effort to increase the level of graduation of the community in Bitung City through the Equality Examinations program. As well as how the Bitung City Government's policy related to budget assistance to the center of community learning activities can accommodate the needs of people who drop out evenly and have the same opportunity in the fulfillment of educational services in Bitung City. Thus, this research focuses on two things, namely 1) Analyzing a non -formal education budget assistance policy issued by the Bitung City Government; 2) Knowing the optimization of social assistance to the center of community learning activities for justice and equity in education for people of Bitung City. The research uses a qualitative approach with a type of descriptive research by collecting data that researchers will use, namely through: in-depth interviews, observations and documentation studies. Through this research, it is known that the Bitung City Government has tried to strengthen the non-formal education sector through social assistance in the operational budget for equitable implementation of equality education programs at the center of community learning activities; the conclusion is that the Bitung City Government must maintain the aid policy for the long term by making a Mayor Regulation Consider the number of high school dropout communities and the limitations of the community learning activity center itself.

Policy Guidance for Direct-to-Consumer Genetic Testing Services: Framework Development Study.

The online offer of commercial genetic tests, also called direct-to-consumer genetic tests (DTC-GTs), enables citizens to gain insight into their health and disease risk based on their genetic profiles. DTC-GT offers often consist of a combination of services or aspects, including advertisements, information, DNA analysis, and medical or lifestyle advice. The risks and benefits of DTC-GT services have been debated and studied extensively, but instruments that assess DTC-GT services and aid policy are lacking. This leads to uncertainty among policy makers, law enforcers, and regulators on how to ensure and balance both public safety and autonomy and about the responsibilities these 3 parties have toward the public. This study aimed to develop a framework that outlines aspects of DTC-GTs that lead to policy issues and to help provide policy guidance regarding DTC-GT services. We performed 3 steps: (1) an integrative literature review to identify risks and benefits of DTC-GT services for consumers and society in Embase and Medline (January 2014-June 2022), (2) structuring benefits and risks in different steps of the consumer journey, and (3) development of a checklist for policy guidance. Potential risks and benefits of DTC-GT services were mapped from 134 papers and structured into 6 phases. In summary, these phases were called the consumer journey: (1) exposure, (2) pretest information, (3) DNA analysis, (4) data management, (5) posttest information, and (6) individual and societal impact. The checklist for evaluation of DTC-GT services consisted of 8 themes, covering 38 items that may raise policy issues in DTC-GT services. The themes included the following aspects: general service content, validity and quality assurance, potential data and privacy risks, scientific evidence and robustness, and quality of the provided information. Both the consumer journey and the checklist break the DTC-GT offer down into key aspects that may impact and compromise individual and public health, safety, and autonomy. This framework helps policy makers, regulators, and law enforcers develop methods to interpret, assess, and act in the DTC-GT service market.

A Brief Overview of State Aid Policy in the Republic of Serbia

A Brief Overview of State Aid Policy in the Republic of Serbia

TURKEY AS A NEW SECURITY ACTOR IN THE HORN OF AFRICA

Due to having unique geographical location, the Horn of Africa is one of the most important strategic regions in the world. Thanks to the geo-political and the geo-economic importance of the region, global and regional actors have continuously maintained their strategic relations with this region throughout history. Despite the existence of structural political, economic, and security crises in the region, significant political and economic transformation has emerged throughout the region after the 2000s. This study argues whether Turkey’s increasing security cooperation with the Horn of Africa has contributed to the political, economic and military transformation of the countries in the region. Since 2011, Turkey has implemented a multi-faceted and proactive foreign policy to strengthen its strategic relations with the Horn of Africa. This article found that that Turkey’s lack of a history of exploitation and active humanitarian aid policy of Turkey in Africa have paved the way for the emergence of the establishment of strong and long-term strategic partnerships with the countries in the Horn of Africa.

Towards an integrated approach to EU foreign policy? Horizontal spillover across the humanitarian–development and the security–migration interfaces

ABSTRACT Combining theoretical insights from works on policy integration and institutional overlap, this article develops a novel analytical framework to account for variations in policy integration in the EU’s external relations. We argue that the greater the level of institutional fit between different areas of the EU’s external relations, the greater the prospects for deepening policy integration through a ‘horizontal spillover’ mechanism. Specifically, we argue that network formation, policy entrepreneurship and political socialisation are key elements of this horizontal spillover mechanism leading towards greater policy integration. Empirically, we explore the relevance of our theoretical claims for the interface between the EU’s development policy and its humanitarian aid policy and between the CSDP and external migration policy in the AFSJ domain. Whilst both policy interfaces have been marked by growing functional pressures, we show that differences in institutional fit have resulted in varying degrees of progress in policy integration.

Correlation between higher education support and future sustainable ecopreneurship drive among Javanese-centric students

The environmental crisis has triggered green markets and eco-consciousness. Java is facing severe ecological stress. Ecopreneurship is then seen as a job creator and conservation tool. However, obstacles such as scarce resources remain among entrepreneurs. Universities play a crucial role in promoting eco-awareness and nurturing aspiring ecopreneurs. This study aims to analyze the role of three pillars of external support for education, government, and technology in self-efficacy and ecopreneurship intentions among Java Island students. This study involved 309 undergraduate (S1) students from state and private universities in Java in different specialization programs, based on the criteria, who attended and passed the entrepreneurship course program. Data analysis was conducted using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results showed that eco-educational support was found to significantly enhance ecopreneurial self-efficacy, aligning with prior research emphasizing the importance of recognition, curriculum, industry collaboration, and business ecosystem in fostering self-efficacy. Similarly, eco-educational support positively influences ecopreneurial intention, reinforcing the significance of educational initiatives in promoting green business ventures. Governmental assistance, including financial aid and pro-environment policies, was identified as crucial in bolstering both self-efficacy and intention for ecopreneurship. Moreover, the support of information technology positively affects self-efficacy and intention, indicating its role in facilitating access to resources and fostering confidence among aspiring ecopreneurs. The study also highlighted the mediating role of self-efficacy, suggesting its importance in bridging external support with entrepreneurial intentions. Overall, the findings underscore the importance of holistic support systems in cultivating a generation of environmentally conscious entrepreneurs. AcknowledgmentThis study is funded by the Riset Kolaborasi Indonesia (Grant No. 38248/UN38.15/LK.04.00/2023) Universitas Negeri Surabaya.

Does one good turn deserve another? Evidence from China’s trade and aid policy

ABSTRACT In this article, we explore the effects of China’s foreign aid on its exports. To do this, we use a sample of 165 countries during the period 2000–2014 and employ a gravity model. We find that the return on Chinese exports for every dollar spent on foreign aid is from $0.156 to $0.4, at the aggregate level. The aid provided in past periods continues to promote China’s exports. We also show, while taking into account aid heterogeneity, that China experiences a higher return in terms of exports when providing development aid intended for infrastructure, to the recipients. Additionally, we find that China’s international aid helps the country to trade more with similar income-level economies. Hence, it can, to a certain extent, foster South-South trade relations.

Can energy aid drive greener economic growth? A global evidence.

As a bilateral or multilateral international policy, foreign aid has the potential to contribute to economic growth in recipient countries, but the impact on green growth, especially aid flows to the energy sector, is unclear. Existing studies have paid little attention to the actual effects of whether energy aid is effective in raising green total factor productivity (GTFP) in recipient countries. To fill this gap, this study investigates the dynamic impact of energy aid on GTFP in recipient countries using balanced panel data for 92 countries from 2002 to 2019, and the study also examines potential sectoral heterogeneity and impact mechanisms. The results show that energy aid can effectively contribute to improving GTFP in recipient countries, but this scale effect varies significantly by aid type, revealing sectoral heterogeneity in the impact of energy aid. In addition, energy aid can indirectly enhance GTFP in recipient countries by promoting financial development, optimizing energy mix, and improving energy efficiency. Both government quality and human capital have a positive moderating effect on the energy aid-GTFP relationship. These findings reveal an important mechanism for energy aid to contribute to green economic growth and provide theoretical support and a practical basis for the formulation of more targeted aid policies.

Using forced migration to foster emergence? International aid and development policies in Cameroon

Abstract This paper examines the alignment of refugee aid interventions with Cameroon’s national policy of emergence, shedding light on an authoritarian government's utilization of international assistance. Drawing on extensive ethnographic fieldwork, it investigates how international policies aiming at turning refugees into a development opportunity for their host states are managed by an aid-receiving country and strategically leveraged by Cameroonian authorities to strengthen their political apparatus. It explores how the government integrates humanitarian responses with large-scale development policies, while retaining control over strategic sectors. Implementing the emergence policy enables Cameroon to reappropriate international standards, navigating complex donor relations to establish new legitimacy. The analysis highlights the power dynamics and implications of aid interventions within an authoritarian context, demonstrating the state's capacity to transform internal crises into productive forces. This research contributes to a better understanding of the links between refugee aid, host states’ domestic and international politics, and migration diplomacy.

Oil price, energy consumption and CO2 emissions as growth determinants: a PVAR system GMM approach

Purpose This study aims to revisit the empirical debate about the asymmetric relationship between oil prices, energy consumption, CO2 emissions and economic growth in a panel of 184 countries from 1981 to 2020. Design/methodology/approach A relatively new research method, the PVAR system GMM, is applied. Findings The outcome of the PVAR system GMM model at the group level in the study suggests that oil prices exert a positive but statistically insignificant effect on economic growth. Energy consumption is inversely related to economic growth but statistically significant, and the correlation between CO2 emissions and economic growth is negative but statistically insignificant. The Granger causality test indicates that oil prices, CO2 emissions, oil rents, energy consumption and savings jointly Granger-cause economic growth. A unidirectional causality runs from energy consumption, savings and economic growth to oil prices. At countries’ income grouping levels, oil prices, oil rent, CO2 emissions, energy consumption and savings jointly Granger-cause economic growth for the high-income and upper-middle-income countries groups only, while those variables did not jointly Granger-cause economic growth for the low-income and lower-middle-income countries groups. The modulus emanating from the eigenvalue stability condition with the roots of the companion matrix indicates that the model is stable. The results support the asymmetric impacts of oil prices on economic growth and aid policy formulation, particularly the cross-country disparities regarding the nexus between oil prices and growth. Originality/value From a methodological perspective, to the best of the author’s knowledge, the study is the first attempt to use the PVAR system GMM and such a large sample group of 184 economies in the post-COVID-19 era to examine the impacts of oil prices on countries’ growth while controlling for other crucial variables, which is noteworthy. Two, using the World Bank categorisation of countries according to income groups, the study adds another layer of contribution to the literature by decomposing the 184 sample economies into four income groups: high-income, low-income, upper-middle-income and lower-middle-income groups to investigate the potential for asymmetric effects of oil prices on growth, the first of its kind in the post-COVID-19 period.

Influencing Aid Policy: Perceptions of How Member States Shape EU Development Cooperation

Influencing Aid Policy: Perceptions of How Member States Shape EU Development Cooperation

공여국 원조품질의 영향 요인 분석

Purpose: This study aims to identify the factors that influence the quality of aid provided by donors.
 Originality: Unlike existing aid effectiveness research that mainly focuses on institutional improvements in recipient countries, this study focuses on enhancing aid quality of donors for aid effectiveness. It also differentiates itself from previous studies by adopting a more comprehensive approach to defining and analyzing aid quality rather than treating it as a single factor.
 Methodology: The dependent variable, aid quality, is measured through principal component analysis of five variables from the QuODA dataset. The independent variables consist of five factors influencing aid quality: institutional, structural, macro-economic, strategic importance, and aid volume factor. Panel regression analysis with a fixed effect model was conducted on 22 OECD DAC bilateral donors over the five years(2008, 2009, 2012, 2016, 2019) for which the CGD collected QuODA data.
 Result: Peer pressure and income level of donors were found to have a statistically significant effect on aid quality. Consistent with the original hypothesis, increased pressure from other countries was associated with higher aid quality. Contrary to the original hypothesis, however, higher income level of donors was associated with lower aid quality.
 Conclusion and Implication: Creating a competitive environment that allows for comparison of aid effectiveness among donors can enhance aid quality by motivating donors to refine their aid policies and practices. In addition, economically wealthier donors can improve aid quality by expanding their contributions to multilateral aid, ensuring that aid policies and practices are closely aligned with the needs of recipient countries.

Implementation of Legal Aid for the Poor Communities of DKI Jakarta Based on Law No.16 of 2011 (Case Study: Handling Domestic Violence for Women & Children by LKBH FH UPNVJ)

The main objective of this research is to discuss how to implement legal aid policies, namely Law no. 16 of 2011, for poor communities, especially for victims of domestic violence in DKI Jakarta. Focuses on interactions and strategies between the National Legal Development Agency, the DKI Jakarta Regional Office of the Ministry of Law & Human Rights, and the FH UPNVJ Legal Assistance and Consultation Institute, as well as identifying problems that arise in providing legal assistance in the field. This research uses the Policy Capacity theory by Xun Wu, M. Ramesh, and M. Howlett. Providing legal assistance by government and non-government actors is faced with many complex challenges, especially handling domestic violence cases in DKI Jakarta, so innovation is needed from actors to overcome these challenges.

Foreign aid, institutional quality, and income inequality in Africa: A dynamic panel threshold approach

This study examines the impact of foreign aid and institutions on income inequality in 23 African countries during the period from 2005 to 2017. The study used a newly proposed novel dynamic panel threshold technique. The results of the study found an institutional quality threshold value of 1.622. Below the threshold, foreign aid was found to positively and significantly influence income inequality. However, above the threshold, the coefficient of foreign aid was negative with statistical significance. This implies that foreign aid tends to diminish income inequality in the presence of quality institutions. The study also used the quantile regression method to check for robustness. It showed that the conclusion between aid and inequality is the same in most of the quantiles (0.1 and 0.2). The findings can be worthwhile for sketching proper aid policies to lessen inequality. Policymakers in Africa should prioritize establishing high-quality institutions and developing measures to improve existing ones. Thus, aid could potentially reduce income inequality. This study suggests that it is important to note that aid programs can be effective when tailored to the particular needs and circumstances of each beneficiary country, as one-size-fits-all methods may not produce the anticipated outcomes.

Exploring the preference for bilateral aid: Gulf oil states’ aid to Yemen

This article delves into the significant role played by the five Arab Gulf oil states in global development and humanitarian aid efforts. It also acknowledges the criticism they face for their preference for bilateral and earmarked aid, with allegations of political motivations. Focusing on Yemen as a case study, the research explores the motivations and effectiveness of Gulf states’ aid preferences. Using a qualitative approach from 30 semi-structured in-depth interviews and a comprehensive literature review, the study takes three distinct research directions, examining how Gulf donor countries strategically employ bilateral aid in conflict running, how they use bilateral aid to forge and strengthen geopolitical alliances within the region, and the complexities associated with multilateral aid channels in Yemen. In providing insights into the motivations and strategies of Gulf countries in their aid policies, this research contributes to discussions on aid delivery and maximising impact in conflict-affected areas.

The Role of the IBSA Fund in Foreign Aid Policies of IBSA and BRICS Member States

The IBSA Fund, which marks its 20th anniversary in 2024, has extended SouthSouth cooperation to 34 states since its establishment in 2004. This article aims to compare the recipients of bilateral development assistance from IBSA members with IBSA Fund projects’ partners. The objective is to discern the motivations behind the selection of the Fund’s project partners, assess the influence of member states on partner selection, and explore the potential benefits of including Russia and China (both BRICS and New Development Bank participants) as members. The authors analyze the structure, mechanisms, and priorities of IBSA projects, juxtaposing them with New Development Bank projects to highlight key differences and assess shortcomings. The research draws on releases and reports from development agencies, AidData databases, and online databases detailing cooperation projects of all IBSA members and the IBSA Fund. The analysis reveals that the IBSA Fund serves as an additional tool for member states in development cooperation, driven by shared opportunities and responsibilities. Partner selection appears largely motivated by the national interests of IBSA states. While both the IBSA Fund and New Development Bank espouse similar development principles, goals, and narratives, they exhibit differences in terms of development cooperation modalities, emphasis on loans versus grants, project geography, and priorities. As this makes closer cooperation between the two entities unreasonable, Russia and China, whose development assistance priorities largely align with those of the IBSA members, could still be included in the IBSA Fund mechanism, particularly if additional funding is required.