Foreign Aid Research Articles

Yemen's humanitarian collaboration during conflict: UN and local NGOs in focus

This paper presents an exploratory study investigating the complex relationship between the United Nations (UN) system and local non-governmental organizations (NGOs) in Yemen's humanitarian food assistance provision. Employing qualitative research methods, including document analysis and stakeholder interviews, we aim to understand key factors influencing collaboration and identify challenges hindering effective cooperation. Our findings emphasize the need for the UN to diversify its approaches to social interaction in food aid programs, prioritizing initiatives that resonate with local communities. Furthermore, active efforts to engage and satisfy local NGOs are essential for improving program effectiveness and achieving shared objectives. This study sheds light on critical areas for intervention, emphasizing the importance of fostering meaningful partnerships to address humanitarian challenges in Yemen.

Making aid work: institutional thresholds and FDI

Purpose The purpose of this paper is to analyse the institutional threshold effects of foreign aid on foreign direct investment (FDI). Design/methodology/approach This paper develops a theoretical model from an extended Solow model that introduces the conductive effect of institutions in an aid recipient country towards the capacity of attracting FDI. This study evidences threshold effects with the most recent panel threshold models that consider endogeneity issues. The data on economic institutions and foreign aid are decomposed into disaggregated level to reveal the detailed threshold pattern. Several sample subsets are used for a heterogeneity analysis. Findings Conducting empirical research on a sample of 62 countries during the period 2003–2016, this study finds robust evidence of the existence of an institutional threshold in the aid–FDI nexus which a country must attain to reap the full attraction of FDI by foreign aid providing financial resources. Furthermore, foreign aid tends to promote FDI in institutions characterized by a right-sized government, a strengthened legal system and an appropriate regulatory environment. On the other hand, aid may crowd out FDI. The results are robust to regional combinations and a subset of low and lower-middle-income countries. In addition, this study finds that aid targeted at social infrastructure and services has a positive effect regardless of institutional threshold. Originality/value This paper contributes to the literature by introducing a non-linear and discontinuous effect of aid on FDI, i.e. a threshold effect, highlighting the relevance of legal systems and regulations and the possibility of a crowding-out effect on FDI for specific institutional regimes. The thresholds provide a guide for donor countries to ensure aid effectiveness at the risk of being counterproductive and for recipient countries to better assess the institutional dimensions that need to be improved.

Analyzing the effectiveness of energy aid for driving the transition towards energy decarbonization; Evidence from Asian developing countries

Environmental degradation poses a significant challenge in many developing countries, as they heavily rely on fossil fuels to drive economic activities. The transition towards renewable energy is crucial to mitigate ecological depletion, yet numerous Asian developing countries may struggle to achieve the desired levels of renewable energy adoption due to financial constraints. Foreign aid in the energy sector can expedite this transition process. This study aims to examine the impact of foreign aid on the energy decarbonization transition in 22 Asian developing countries from 2003 to 2022 to analyze its contributions and challenges to promote renewable energy adoption. This paper incorporates the two types of foreign aid in the energy sector (nonrenewable and renewable energy aid) provided by the OECD to developing economies. Utilizing the System-Generalized Method of Moments (Sys-GMM), the findings reveal that energy aid significantly contributes to the transition towards energy decarbonization by providing financial support for embracing renewable energy technologies. Specifically, the analysis indicates that a 1% increase in energy aid leads to approximately 3% enhancement in the decarbonization transition process. Moreover, this study adds to the existing body of knowledge by examining the mediating impact of human capital and financial development as well as the moderating effect of institutional quality and demand for clean fuel. These factors play a pivotal role in energy decarbonization transition by fostering financial development and enhancing human capital through capacity-building initiatives and facilitating the adoption of renewable energy technologies.

Impact of Foreign Aids on Poverty in Nigeria: A Longitudinal Study (1992–2023)

Aids for citizens of a country like Nigeria cannot be overlooked. People require financial and other forms of assistance to be able to meet their basic needs. Conversely, the significance of all the assistance received from foreign bodies on households and nonprofit institutions in Nigeria is not clear. The study examined Net Official Development Assistance and Official Aid Received (NAID) and its effect on Households and NPISHs Final Consumption Expenditure (HNFC). The study used time series, relying on secondary data. It used Augmented Dickey Fuller (ADF) as a unit root test. It further tested the long run relationship among the variables via Johansen co- integration test. Simple regression model equation was adopted for the work. The study revealed that NAID has a significant effect on HNFC. The study concludes that NAID are the predictors and determinants for NAID in Nigeria. The study recommends that more Foreign Aid be encouraged in Nigeria.

A Roadmap for the Implementation of Building Energy Efficiency Codes Compliance in Tripoli-Lebanon: Key Actions in the Familiarity Stage

Objective: The objective of this study is to provide policy recommendations for strengthening governance and institutional capabilities to ensure effective climate action and sustainable development in Tripoli-Lebanon and to propose a multi-staged implementation framework for T-BEEC, focusing on familiarity, with the aim o To facilitate Lebanon's transition towards sustainable energy sources by implementing an effective Building Energy Efficiency Code (T-BEEC) in Tripoli. Theoretical Framework: The study employs environmental science, urban planning, and socio-economic theories, focusing on policy adoption and the diffusion of technological innovations to enhance urban energy efficiency and sustainability. Method: A mixed-methods approach is adopted, incorporating both qualitative and quantitative research methods. Data collection involved semi-structured interviews with key personnel at the Tripoli Municipality Permit Office and thematic analysis of the barriers and facilitators to BEEC implementation. Comparative case studies from different geopolitical regions provide a broader perspective on the challenges and strategies of energy code compliance. Results and Discussion: Findings emphasize the critical need for infrastructure and resource optimization, including vehicle maintenance and replacements, spatial layout reorganization, and the prompt repair of computers and printers, to ensure operational efficiency. Additionally, the pursuit of diverse financial support sources highlights the reliance on municipal fees, international aid, NGO contributions, and educational partnerships to overcome financial and resource constraints Research Implications: This study impacts urban energy management theory and practice, providing key insights for policymakers and planners in similar settings. Originality/Value: This study outlines a unique approach to implementing energy codes during Tripoli's familiarity period, enhancing urban sustainability and policy effectiveness.

The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions

Drawing inspiration from Feldstein and Horioka’s (1980) (FH) puzzle, our study elucidates the impact of remittances and Foreign Direct Investment (FDI) on domestic savings and investment in two disparate yet globalized developing regions: Latin America and the Caribbean and South Asia. Utilizing an extensive dataset spanning from 1984 to 2021 and employing diverse methodologies, including Dynamic System generalized method of moment, Driscoll–Kraay standard error, fully modified ordinary least squares, and dynamic ordinary least squares, our findings reveal that remittances exert a positive influence on both domestic investment and savings across both regions. However, South Asia predominantly directs remittance inflows towards investment, while Latin America and the Caribbean exhibit a propensity towards saving these funds. As for FDI, the primary developing region predominantly channels these funds into investment, whereas the lower region prioritizes savings. The impact of control variables manifests varied effects across both regions. Ultimately, our study underscores the pivotal role of foreign remittances in supporting investment and savings, underscoring the profound influence of economic growth on these dynamics. This accentuates the imperative for governments to proactively allocate financial resources to optimize economic growth and fortify financial frameworks. Moreover, focused strategies are indispensable for adeptly managing foreign inflows while navigating external shocks such as international repayments, external debt, and aid. Additionally, enhancements in monetary and fiscal policies are imperative to sustain competitive interest rates and foster stable macroeconomic conditions, thereby fostering conducive environments for both public and private domestic savings. JEL Classification: F24; F3; P33; C23; O18

Heterogeneous effects of economic assistance on mortality risk in violent conflicts in Africa

ABSTRACT Armed conflicts in Africa have serious harmful impacts on human well-being. Existing evidence on whether economic aid (Official Finance, OF) reduced conflicts is diverse and contested. China has become one of the world’s largest overseas financiers. Taking the impacts of China’s OFs on conflict-related mortality risk (CRMR) as a case study is representative of addressing the issue. Combining the data of China’s OFs covering 52 African countries with armed conflict data from 2000 to 2017, we employ the instrumental variable and two-stage least squares estimation to explore the relationship between China’s OFs and CRMR. Our results indicate an 18% decrease (95% confidence interval (CI): 2–34%) in CRMR in a year after the OF commitment for a 1% increase in OF amounts. The OFs in social infrastructures (e.g. health, education and civil society) had greater positive impacts on the CRMR reduction than those in economic and production sectors. More pronounced effects of OFs are observed on small-scale state-based conflicts, in countries with low-level road infrastructures than their counterparts. Our findings give the references for policy-makers to optimize the pathway of the OFs for providing better relief to war-torn regions.

Foreign Aid, Violence, and Electoral Support in Developing Countries: Experimental Evidence From the Philippines

Election-related violence is rampant in many developing countries that receive foreign aid. However, it is not well understood why voters often elect representatives who are associated with such violence. In this article, I investigate why voters might support politicians who resort to violence. I argue that the poor tend to vote for candidates who deliver tangible local benefits through foreign aid projects even when those candidates use violence during election periods. To support this argument, I conducted a nationwide survey in the Philippines that included an experiment about the effects of foreign aid and violence on voters’ electoral support for a candidate. I find that poor voters who reside in a region where basic public goods and services are deficient are more likely to support a candidate whose district has received foreign aid, regardless of her alleged electoral violence. This research sheds light on a mechanism that links poverty to electoral violence in less developed countries. It also reveals an unintended consequence of foreign aid: increasing the likelihood of electoral violence.

Aid and Governance

The relationship between aid and governance has been a topic of considerable discussion and debate within the international development community. Good governance and effective institutions have long been spotlighted by development partners as essential for economic development and aid effectiveness. With the adoption of the Sustainable Development Goals in 2015, they have been recognized globally also as development goals in themselves – framed, as set out in SDG 16, with attention to peace, access to justice, and ‘effective, accountable, and inclusive institutions’. Yet at the same time that aid has been seen to play a pivotal role in international efforts to support and incentivize better governance, long-voiced critiques have spotlighted how it also may have (unintentionally) negative impact on the same. Recent global trends and events further have served to focus attention on the role of aid, and the challenges faced by aid, in relation to governance and institution-building.

Follow the Giver: Is Chinese MNEs’ Investment in Africa Linked to Official Aid?

Abstract Does Chinese aid to African countries trigger Chinese foreign direct investment? Bridging the literature on the impact of foreign aid on foreign direct investment (FDI) and that on state ownership, we consider FDI by China's state-owned enterprises (SOEs) compared with that of its privately owned enterprises (POEs) and find FDI by the former is more likely to follow Chinese governmental aid to Africa. Borrowing from institutional theory, we posit that FDI by SOEs follows political imperatives while FDI by POEs pursues market motives. Using data from multiple sources on 3,760 Chinese FDI projects in Africa between 2001 and 2015, we find a correlation between SOE FDI and government aid than that of POEs; that aid has a greater impact on the probability of FDI when the policies of the host country and those of China are in sync, especially in the case of SOEs; and that in low-investment-risk countries the link between aid and investment is weakened, especially in the case of POEs. The results are robust and consistent across different measures and analyses. We contribute to the literature on the relationship between aid and FDI, as well as to that on varieties of capitalism.

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.

Foreign aid: An agent for socioeconomic development? A case study from an emerging economy: Pakistan

AbstractPakistan's economy since its creation has remained heavily dependent on foreign aid, especially to manage the ever‐widening gap between the available financial resources, development expenditure, fiscal deficit, and current account deficit. This article critically evaluates the effectiveness of foreign aid in Pakistan from 2000 to 2022 via an in‐depth literature review and the rational actor model (RAM). Furthermore, a mixed‐method approach based on descriptive quantitative and in‐depth qualitative research methods was adopted for this study. The article demonstrates that RAM can assist policy makers, enabling them to make decisions vis‐à‐vis foreign aid while safeguarding national interests, particularly economic interests. However, this study finds that for Pakistan to achieve sustainable economic growth, increasing exports and attracting more foreign direct investment hold greater potential than continued reliance on foreign aid. In conclusion, the article prescribes policy measures to restructure Pakistan's political system to foster socioeconomic development through trade liberalization and good governance.Related ArticlesAsongu, Simplice A., and Joseph Nnanna. 2019. “Foreign Aid, Instability, and Governance in Africa.” Politics & Policy 47(4): 807–48. https://doi.org/10.1111/polp.12320.Dobransky, Steve. 2014. “Violators amongst Us: International Regimes and the Role of Compliance, a Case Study on Official Development Assistance.” Politics & Policy 42(4): 593–634. https://doi.org/10.1111/polp.12082.Scarlato, Margherita, and Giorgio d'Agostino. 2019. “The Political Dimension of Cash Transfers in Latin America and Sub‐Saharan Africa: A Comparative Perspective.” Politics & Policy 47(6): 1125–55. https://doi.org/10.1111/polp.12332.

Socioeconomic constraints on low‐income individuals' perceptions toward food safety

AbstractFood safety has emerged as a critical concern in Vietnam, posing a significant threat to public health due to the prevalence of unsafe foods in the market. Among those most vulnerable to contaminated foods, low‐income individuals are significantly affected. This study aimed to investigate the perceptions of food safety among this demographic, utilizing qualitative and quantitative approaches, including focus groups, survey questionnaires, and behavioral experiments using steamed bun as a stimulus. Participants were generally from low‐income classes with certain variations in household monthly income. Results from focus groups and the survey highlighted that the factors influencing food purchases included perception of safety, sensory properties, and acceptable pricing. The behavioral experiment revealed that participants with lower incomes were more inclined to select foods containing unsafe chemicals. In conclusion, the study underscored the heightened vulnerability of low‐income individuals to unsafe foods, with their perception of food safety bounded by socioeconomic status.Practical ApplicationsThe study highlights the high risk of contaminated food consumption among low‐income individuals in Vietnam, intensified by economic struggles and heightened vulnerability to food insecurity. With this demographic relying on regulations for their health, urgent actions are needed. Governmental policymakers should focus on implementing food safety educational campaigns, promoting affordable and safe alternatives, and providing food aid to economically disadvantaged communities. Mandatory food safety training programs for street food vendors, food handlers, and small businesses, coupled with regular safety practice monitoring, can play a crucial role in mitigating serious consequences. In addition, the research methodologies employed in this study, especially the behavioral experiment approach, can serve as valuable tools for researchers in the field of consumer behavior, enabling them to attain valid and reliable results.

Conditions of the family environment conducive to children's life success in the opinions of war refugees from Ukraine

Life success is an essential area of social sciences and humanities research. The article's main goal is to present the factors of the family environment that contribute to children's success in life, in the opinion of surveyed war refugees from Ukraine. Additionally, information was presented on how war refugees from Ukraine understand life success. The concepts of success and life success were explained. The reasons for the arrival of war refugees from Ukraine to Poland were presented. Global, international, national and local aid is described. Based on the research results, it was found that in the process of educating children to succeed in life, the most critical factors are supporting the child’s self-confidence, frequent displays of parental love and developing planning skills (setting goals). The surveyed people most often understood success in life as: having a happy family, being happy and healthy. The situation of armed conflict, which is the reason for the arrival of war refugees from Ukraine to Poland, makes family life difficult for these refugees. Conducting scientific research in such a specific situation has, in addition to its descriptive nature, also a cognitive value. It allows you to learn about parents' opinions about their children’s success in life.

Aid for trade and export performance of recipient countries: The moderating role of institutions

Using bilateral trade and aid for trade (AfT) data for a sample of 155 countries over the period 2002-2019, we implement a gravity analysis to assess whether bilateral aggregate AfT and various AfT categories have stimulated exports of AfT-recipient countries to donors, and to examine if the institutional distance between recipients and donor countries affected the efficacy of AfT in promoting the former's bilateral exports. We show that AfT flows tend to foster exports of recipients, both at the extensive margin and intensive margin. Moreover, the trade-stimulating effect of AfT for trade policy and regulation is more pronounced than that of other AfT flows. Finally, institutional disparities between trading partners dampen the effectiveness of AfT in promoting exports at both margins of trade; and certain regions and income-based groups have managed to benefit more than others from AfT. Increasing the amount of disbursed aid flows is likely to speed-up the insertion of developing countries into world markets; strengthening governance in AfT-beneficiary countries and closing their institutional gap with donors would enhance the effect of AfT on their exports; and tying AfT flows to governance-related reforms in recipients can be an option to consider by donors.

Reshaping the Multilateral Aid Regime from the Global South? Alternative Perspectives on Humanitarianism, Development and Peacebuilding from Latin America and the Caribbean

ABSTRACT In the context of rising contestations to the Liberal International Order (LIO), it is crucial to highlight the contribution of the Latin American and Caribbean (LAC) region to international institutions and global governance, particularly considering its peripheral position in the world order. The Triple Nexus Approach (TPA), adopted in 2016, promotes a coordinated effort in providing humanitarian assistance and aid for development by integrating them with peace endeavours. The LAC region has provided political and conceptual contributions to each TPA component, providing alternative perspectives on multilateral governance in humanitarian action, development and peacebuilding, emphasising the pursuit of collective and context-specific outcomes for crisis prevention. Focusing on the period from the early 21st century to 2019, a time when the Triple Nexus theoretical structuring publications emerged, it is highlighted how contestations to the LIO and the changing world order have impacted global governance norms, creating opportunities for emerging and peripheral countries to shape post-liberal rules. This allows Global South countries to set self-determined development objectives and make a meaningful contribution to global rule-making.

Conflict sensitivity and activism: insights from Cambodia's resource conflicts

ABSTRACT This paper examines debates relating to international aid, civil society, and natural resource conflicts, through a case study of conflict sensitivity programming in Cambodia. The paper highlights the value of confrontational activism, yet the practice of conflict sensitivity can dissuade such activism. Embedded in the country's history and politics, the paper analyses the conflict sensitivity work of an international non-government organisation, revealing significant community-level success, including women's empowerment, but limitations in addressing systemic drivers of conflict. The case study also reveals how the application of conflict sensitivity contributed towards conflict and risk avoidance. In a global context of prevalent natural resource conflicts and related violence, this paper calls for critical reflection on the practice of conflict sensitivity, which continues to gain popularity globally. For development institutions and practitioners, conflict sensitivity has extensive value, but it must be implemented in ways that do not inadvertently dissuade more emancipatory civil society activism.

What Would Happen to Poverty in Africa if Most Aid Were Delivered as Social Cash Transfers? A Case Study of Uganda

This article explores the potentially game-changing idea of repurposing a major part of overseas development assistance (ODA) to fund the up-scaling of social cash transfers (SCTs) in Africa. The analysis contributes to the debate about how best to use global development aid by considering the idea of simply bypassing the aid industry and instead giving most funds directly to the poor. With Uganda as a case study, we use the UGAMOD microsimulation model to analyse the socio-economic impact of using a major part of the current aid envelope, which for 2017–2020 was on average 2.37 billion USD, to provide two types of SCTs, namely old-age pensions and child grants. The scenarios analysed include both universal and means-tested SCTs at different cost levels, ranging between 4 and 115 per cent of current annual ODA in Uganda. We demonstrate that allocating a major part of ODA to SCTs would, seen in isolation, lead to very considerable reductions in poverty. In one tested scenario, where most ODA is allocated for universal child support, it is predicted that about two-thirds of current poverty would be eliminated. Importantly, however, large-scale SCTs would also come with significant socio-economic allocation costs, as aid is shifted away from its current uses, much of which goes to the social sectors. We discuss what this may imply for government revenue generation and the timing of any potential scaling of SCTs. Lastly, we note that scaling of SCTs would have political economy implications, which would need to be better understood.

Food insecurity and dietary diversity among food aid recipients in urban and rural areas at the covid‐19 outbreak: An exploratory study

AbstractThe covid‐19 pandemic has affected food aid. This paper reports an exploratory study to estimate the prevalence and degree of food insecurity, household dietary diversity score (HDDS), and the association with demographic, social, and economic characteristics of health status in a sample of food aid recipients in urban and rural areas of Catalonia, Spain. Cross‐sectional data on food insecurity, dietary diversity, household income, health, and sociodemographic characteristics were obtained from the survey taken at seven different food aid distribution points from urban and rural locations. Sixty‐six percent of the participants identified as new users since the covid‐19 crisis. Only 12.5% of the sample lived in households where all adults were unemployed, and 44.8% were employed. Almost a third of the sample (32.3%) reported having someone in their household who suffered from a diet‐related illness or disease. The prevalence of severe food insecurity was 52.1%, followed by 28.1% suffering moderate food insecurity. New food aid users due to covid‐19 pandemic showed a significantly higher prevalence of food insecurity. No significant differences were found in terms of HDDS. This paper provides evidence that much of the gap in food insecurity is related to dietary diversity and children in households considering different urban or rural areas.

Real-World Gait Detection Using a Wrist-Worn Inertial Sensor: Validation Study.

Wrist-worn inertial sensors are used in digital health for evaluating mobility in real-world environments. Preceding the estimation of spatiotemporal gait parameters within long-term recordings, gait detection is an important step to identify regions of interest where gait occurs, which requires robust algorithms due to the complexity of arm movements. While algorithms exist for other sensor positions, a comparative validation of algorithms applied to the wrist position on real-world data sets across different disease populations is missing. Furthermore, gait detection performance differences between the wrist and lower back position have not yet been explored but could yield valuable information regarding sensor position choice in clinical studies. The aim of this study was to validate gait sequence (GS) detection algorithms developed for the wrist position against reference data acquired in a real-world context. In addition, this study aimed to compare the performance of algorithms applied to the wrist position to those applied to lower back-worn inertial sensors. Participants with Parkinson disease, multiple sclerosis, proximal femoral fracture (hip fracture recovery), chronic obstructive pulmonary disease, and congestive heart failure and healthy older adults (N=83) were monitored for 2.5 hours in the real-world using inertial sensors on the wrist, lower back, and feet including pressure insoles and infrared distance sensors as reference. In total, 10 algorithms for wrist-based gait detection were validated against a multisensor reference system and compared to gait detection performance using lower back-worn inertial sensors. The best-performing GS detection algorithm for the wrist showed a mean (per disease group) sensitivity ranging between 0.55 (SD 0.29) and 0.81 (SD 0.09) and a mean (per disease group) specificity ranging between 0.95 (SD 0.06) and 0.98 (SD 0.02). The mean relative absolute error of estimated walking time ranged between 8.9% (SD 7.1%) and 32.7% (SD 19.2%) per disease group for this algorithm as compared to the reference system. Gait detection performance from the best algorithm applied to the wrist inertial sensors was lower than for the best algorithms applied to the lower back, which yielded mean sensitivity between 0.71 (SD 0.12) and 0.91 (SD 0.04), mean specificity between 0.96 (SD 0.03) and 0.99 (SD 0.01), and a mean relative absolute error of estimated walking time between 6.3% (SD 5.4%) and 23.5% (SD 13%). Performance was lower in disease groups with major gait impairments (eg, patients recovering from hip fracture) and for patients using bilateral walking aids. Algorithms applied to the wrist position can detect GSs with high performance in real-world environments. Those periods of interest in real-world recordings can facilitate gait parameter extraction and allow the quantification of gait duration distribution in everyday life. Our findings allow taking informed decisions on alternative positions for gait recording in clinical studies and public health. ISRCTN Registry 12246987; https://www.isrctn.com/ISRCTN12246987. RR2-10.1136/bmjopen-2021-050785.