International Development Finance Research Articles

Symbols of State: Explaining Prestige Projects in the Global South

Abstract Why do governments pursue flashy international development projects despite more basic material needs? I argue that economically questionable “prestige projects” can be politically useful for legitimacy-seeking governments of small states in the Global South. Prestige projects provide these governments with otherwise unavailable symbolic capital as well as a means for seeking international status. Using new data on China’s global development finance since 1949, I document nearly 400 prestige projects and show they are concentrated in developing countries with small economies that increase their support for China’s diplomatic interests. An illustrative case study of Costa Rica’s national stadium shows how host countries use prestige projects to acquire national symbolic capital and pursue status. Evidence from a survey experiment in Papua New Guinea further demonstrates that prestige projects are uniquely associated with the national government and status-seeking motives. The findings contribute to research on the political economy of foreign aid, international development, status-seeking, and Chinese development finance.

Strategic Evolution: The Changing Face of US Development Finance in World Trade

This article presents a comprehensive analysis of the strategic transformation in US development finance, particularly highlighting the shift from the Overseas Private Investment Corporation (OPIC) to the Development Finance Corporation (DFC). It delves into the geopolitical and economic objectives driving this transition, reflecting the broader US strategy to counter China’s Belt and Road Initiative (BRI). The article employs a neo-realistic theoretical framework, supplemented by elements of development and legal theory, to provide a multifaceted understanding of these global trade and investment dynamics. It evaluates the DFC’s operational strategy and commitment to facilitating private investment in developing nations while averting potential debt traps and sovereignty risks. The study further examines the role of International Investment Agreements (IIAs) in safeguarding DFC-backed projects and reviews their substantive rules and dispute resolution methods. The article concludes by positing the DFC as a more sustainable and transparent alternative to the BRI, offering potential benefits for both developing nations and US geopolitical interests. Political risk insurance, financial development, investment financing, Investment Incentive Agreements, International Development Finance Corporation, Belt and Road Initiative, trade policy programs

Women on the frontline: exploring the gendered experience for Pacific healthcare workers during the COVID-19 pandemic

Women comprise 90% of patient-facing global healthcare workers (HCWs), yet remain underpaid, undervalued, and under-represented in leadership and decision-making positions, particularly across the Pacific region. The COVID-19 pandemic has exacerbated these health workplace inequalities. We sought to understand Pacific women HCWs experience from the COVID-19 frontline to contribute to policies aimed at addressing gendered gaps in regional health systems. Our interpretative phenomenological study used critical feminist and social theory, and a gendered health systems analytical framework. Data were collected using online focus groups and in-depth interviews with 36 Pacific regional participants between March 2020 and July 2021. Gender-specific content and women's voices were privileged for inductive analysis by Pacific and Australian women researchers with COVID-19 frontline lived experience. Pacific women HCWs have authority and responsibility resulting from their familial, biological, and cultural status, but are often subordinate to men. They were emancipatory leaders during COVID-19, and as HCWs demonstrated compassion, situational awareness, and concern for staff welfare. Pacific women HCWs also faced ethical challenges to prioritise family or work responsibilities, safely negotiate childbearing, and maintain economic security. Despite enhanced gendered power differentials during COVID-19, Pacific women HCWs used their symbolic capital to positively influence health system performance. Gender-transformative policies are urgently required to address disproportionate clinical and community care burdens and to protect and support the Pacific female health workforce. Epidemic Ethics/World Health Organization (WHO), Foreign, Commonwealth and Development Office/Wellcome Grant 214711/Z/18/Z. Co-funding: Australasian College for Emergency Medicine Foundation, International Development Fund Grant.

Counteraction to China? Impact of the U.S. International Development Finance Corporation on China’s Development Finance

Counteraction to China? Impact of the U.S. International Development Finance Corporation on China’s Development Finance

Students as a Nexus of Cultural Diplomacy: Estimating the Outcomes of the International Higher Education Scholarship Program in Taiwan

Internationalization policy in higher education facilitates a nation's economic growth and demonstrates generosity to other nations. This study investigates the impact of the International Higher Education Scholarship Program of the International Cooperation and Development Fund on recipients’ perceptions of and experiences in Taiwan. Based on the management, education, medical science, and engineering programs of four case study universities, it finds attitudinal changes, increased intercultural competence, and signs of institution transfer and knowledge network formation. Socialization has fostered scholarship holders’ cultural affinity and shared identity with Taiwan. As higher education institutions promote knowledge sharing and cultural diffusion, international students are also a nexus of cultural diplomacy, the attractions of which are more conspicuous than knowledge diplomacy's benefits. The empirical evidence of this study helps delineate theoretical frameworks of diplomacy in international higher education. Its longitudinal observation of alumni career trajectories can enrich cross-sectional evaluation.

Determinants of international development investments in renewable energy in developing countries

International development organizations and financial institutions provide financing for renewable energy expansion in developing countries. The eligibility for and success of these investments depend to a great extent on the regulatory, economic and sociopolitical environment in the recipient countries. This research explores what role these characteristics of developing countries play in attracting investments from international development financing sources. The study uses panel data from 2010 to 2017 for 86 developing countries from different regions of the world. It also explores the heterogeneity of the drivers in countries of different levels of economic development. The study finds that the regulatory support for renewable energy plays a significant role, as do FITs, tendering and public investments. Lack of access to electricity or clean cooking energy, or low levels of renewables in the energy composition do not attract development funds. High energy dependence however has a positive impact. Policy instruments and country characteristics affect the inflows of loans and grants differently. The findings have implications for policy makers in both the donor and recipient countries, regarding how development funds can be channeled more effectively to attain SDG 7 and climate goals in the developing countries.

Grounding REDD+ as Democratization of Environmental Policy? Insights and Lessons from the Philippines

This article interrogates how Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+) as a global policy instrument interacts with local realities. It examines the process of crafting a national REDD+ strategy and conclusion of a REDD+ readiness project in the Philippines. It characterizes REDD+ adoption in the country by introducing and using the concept of policy translation as contentious politics. I show that REDD+ mobilized a “coalition of the willing,” comprising different sociopolitical actors that attempted to (re)define and stake their claims over this green policy. I argue that the one-directional process of top-down and bottom-up policy translation was blurred because of the multi-actor interactions in REDD+ schemes. The process can be described as dynamic, which indicates that policy or project objectives rarely travel as complete and fixed packages, but rather as pieces that can be changed in multidirectional ways. To illustrate this, I then outline how indigenous peoples have used spaces of participation as mechanisms for negotiating their autonomy while acknowledging that there are limits to their capacities to rework REDD+. These limitations are tackled by underscoring the discursive struggles on the framing of REDD+ and its objectives, and the state's political resistance to community forest rights. Ultimately, REDD+ became another externally induced technical intervention that relied on international development finance. It lacked a clear political and economic commitment to continuity on the part of the state and left mobilized communities hanging. In view of this, I provide lessons that serve as guideposts for foregrounding indigenous rights and democratizing environmental policies.

Competitive conditions in development finance

This paper evaluates the competitive conditions in development finance and the implications for successfully mobilising private sector finance in order to achieve the United Nations Sustainable Development Goals (SDGs). Using a market definition of cross-border development finance, the analysis uses financial data for 61 development banks from FitchConnect from 2010–2019 and applies the Panzar–Rosse test, supplemented with additional tests for market equilibrium, to gauge the competitive conditions. The key finding is that the international development finance market is in long-term equilibrium and is structured as a competitive oligopoly. The implication is that successful mobilisation of private sector finance will require more innovative structural and funding solutions. Crowding-in of private sector banks on existing terms and in large scale is likely to fall short due to lack of profitability and risk appetite. This has direct implications for the ability of the global financial system to deliver the SDGs.

China’s Multi-Front Institutional Strategies in International Development Finance

Abstract China has expressed its dissatisfaction with aspects of the international development finance regime for many years, related to issues such as its lack of voting power and an insufficient focus on infrastructure spending by traditional multilateral development banks. To address these dissatisfactions, China has utilised a range of approaches, from the application of pressure inside existing institutions, to building outside pressure in the form of using alternative institutions or creating new ones. But how has the combination and timing of these different measures impacted its success in ultimately securing reforms? Applying insights from the institutional choice literature, we find that China has pursued both inside and outside measures to try to secure its objectives in development finance with varying degrees of success. Simply combining these measures has been insufficient to secure success however. In cases where China has exerted internal leverage prior to utilising outside options, it has been the most successful. We conclude that combination and sequencing of these approaches is an under-appreciated factor in determining success of dissatisfied states in securing changes to institutions.

The crisis of maternal and child health in Afghanistan

In the past two decades, despite ongoing war, international development assistance and funding, channelled through Afghanistan's Ministry of Public Health, expanded access to primary care, improved government hospitals, and trained thousands of health-care providers in Afghanistan, especially women. Accompanying technical assistance strengthened the capacity of Afghanistan's Ministry of Public Health to develop policy, design requirements for and oversee services provided by international and national non-governmental organisations (NGOs), and initiate surveillance, monitoring, and evaluation systems.

Lessons from the frontline: Leadership and governance experiences in the COVID-19 pandemic response across the Pacific region

SummaryBackgroundUniversal access to safe, effective emergency care (EC) during the COVID-19 pandemic has illustrated its centrality to healthcare systems. The ‘Leadership and Governance’ building block provides policy, accountability and stewardship to health systems, and is essential to determining effectiveness of pandemic response. This study aimed to explore the experience of leadership and governance during the COVID-19 pandemic from frontline clinicians and stakeholders across the Pacific region.MethodsAustralian and Pacific researchers collaborated to conduct this large, qualitative research project in three phases between March 2020 and July 2021. Data was gathered from 116 Pacific regional participants through online support forums, in-depth interviews and focus groups. A phenomenological approach shaped inductive and deductive data analysis, within a previously identified Pacific EC systems building block framework.FindingsPolitics profoundly influenced pandemic response effectiveness, even at the clinical coalface. Experienced clinicians spoke authoritatively to decision-makers; focusing on safety, quality and service duty. Rapid adaptability, past surge event experience, team-focus and systems-thinking enabled EC leadership. Transparent communication, collaboration, mutual respect and trust created unity between frontline clinicians and ‘top-level’ administrators. Pacific cultural assets of relationship-building and community cohesion strengthened responses.InterpretationEffective governance occurs when political, administrative and clinical actors work collaboratively in relationships characterised by trust, transparency, altruism and evidence. Trained, supported EC leadership will enhance frontline service provision, health security preparedness and future Universal Health Coverage goals.FundingEpidemic Ethics/World Health Organization (WHO), Foreign, Commonwealth and Development Office/Wellcome Grant 214711/Z/18/Z. Co-funding: Australasian College for Emergency Medicine Foundation, International Development Fund Grant.

Lessons from the frontline: The value of emergency care processes and data to pandemic responses across the Pacific region

BackgroundEmergency care (EC) addresses the needs of patients with acute illness and injury, and has fulfilled a critical function during the COVID-19 pandemic. ‘Processes’ (e.g. triage) and ‘data’ (e.g. surveillance) have been nominated as essential building blocks for EC systems. This qualitative research sought to explore the impact of the pandemic on EC clinicians across the Pacific region, including the contribution of EC building blocks to effective responses.MethodsThe study was conducted in three phases, with data obtained from online support forums, key informant interviews and focus group discussions. There were 116 participants from more than 14 Pacific Island Countries and Territories. A phenomenological approach was adopted, incorporating inductive and deductive methods. The deductive thematic analysis utilised previously identified building blocks for Pacific EC. This paper summarises findings for the building blocks of ‘processes’ and ‘data’.FindingsEstablishing triage and screening capacity, aimed at assessing urgency and transmission risk respectively, were priorities for EC clinicians. Enablers included support from senior hospital leaders, previous disaster experience and consistent guidelines. The introduction of efficient patient flow processes, such as streaming, proved valuable to emergency departments, and checklists and simulation were useful implementation strategies. Some response measures impacted negatively on non-COVID patients, and proactive approaches were required to maintain ‘business as usual’. The pandemic also highlighted the value of surveillance and performance data.InterpretationDeveloping effective processes for triage, screening and streaming, among other areas, was critical to an effective EC response. Beyond the pandemic, strengthening processes and data management capacity will build resilience in EC systems.FundingPhases 1 and 2A of this study were part of an Epidemic Ethics/World Health Organization (WHO) initiative, supported by Foreign, Commonwealth and Development Office/Wellcome Grant 214711/Z/18/Z. Co-funding for this research was received from the Australasian College for Emergency Medicine Foundation via an International Development Fund Grant.

Lessons from the frontline: Documenting the pandemic emergency care experience from the Pacific region – Infrastructure and equipment

BackgroundThe COVID-19 pandemic highlighted challenges for all health systems worldwide. This research aimed to explore the impact of COVID-19 across the Pacific especially with regards to emergency care (EC) and clinicians’ preparations and responses.MethodsA collaboration of Australia and Pacific researchers conducted prospective qualitative research over 18 months of the pandemic. In this three phase study data were gathered from Emergency Clinicians and stakeholders through online support forums, in-depth interviews and focus groups. A phenomenological methodological approach was employed to explore the lived experience of participants. This paper discusses the findings of the study regarding the EC building block of ‘Infrastructure and Equipment.’FindingsPre-existing infrastructure and equipment were not sufficient to help control the pandemic. Adequate space and correct equipment were essential needs for Pacific Island emergency clinicians, with donations, procurement and local ingenuity required for suitable, sustainable supplies and facilities. Adequate personal protective equipment (PPE) conferred a sense of security and increased Health Care Workers willingness to attend to patients.InterpretationInvesting in adequate infrastructure and appropriate equipment is crucial for an effective response to the COVID-19 pandemic. The sustainability of such investments in the Pacific context is paramount for ongoing EC and preparation for future surge responses and disasters.FundingPhases 1 and 2A of this study were part of an Epidemic Ethics/World Health Organization (WHO) initiative, supported by Foreign, Commonwealth and Development Office/Wellcome Grant 214711/Z/18/Z. Co-funding for this research was received from the Australasian College for Emergency Medicine Foundation via an International Development Fund Grant.

Lessons from the frontline: The COVID-19 pandemic emergency care experience from a human resource perspective in the Pacific region

BackgroundThis study explores emergency care (EC) and other frontline healthcare worker (HCW) experiences responding to the COVID-19 pandemic in the Pacific region. The crisis has reinforced the crucial role well-trained, resourced, and supported EC providers play in supporting vital health systems and services in all global regions not only during ‘business as usual’ periods, but in times of tremendous stress and surge.MethodsQualitative data were collected from EC providers and relevant stakeholders in three research phases in 2020 and 2021. Data on the World Health Organization's (WHO) Human Resources Building Block, adapted for the Pacific EC context, was thematically analysed. Key findings were further analysed to identify enablers and barriers to effective EC pandemic management.Findings116 participants from across the Pacific region participated in this study. Five themes emerged: (1) EC providers performed multiple pandemic roles; (2) Importance of authorities’ valuing frontline HCWs; (3) HCW mental health and exhaustion; (4) HCW tension managing stigma, personal/professional expectations, and chronic health needs; and (5) Building health and human resource capacity.InterpretationThis study significantly contributes to the limited scientific literature on HCW experiences responding to COVID-19 across the Pacific. Recommendations arising out of this research align with consensus priorities and standards that were identified pre-pandemic by health stakeholders across the Pacific for enhancing EC system development. With limited HCWs available for many Pacific nations, it is imperative the dignity and welfare of local HCWs is genuinely prioritised.FundingEpidemic Ethics/WHO, Foreign, Commonwealth and Development Office/Wellcome Grant 214711/Z/18/Z. Co-funding: Australasian College for Emergency Medicine Foundation, International Development Fund Grant.

Cooperação internacional para o desenvolvimento e financiamento externo para o Brasil: uma macroanálise do período entre 2000 e 2020

Abstract This article analyzes public sector projects and programs in Brazil that received external financing from multilateral and bilateral agencies at the federal, state, and municipal levels between 2000 and 2020. The analyzed data were collected in the COFIEX Panel of the Brazilian Ministry of Economy, categorized, and presented in this article in a contextual way, aiming to represent the first overview of this object for studies on Public Administration in the country. An important instrument of the International Development Cooperation System, International Financing for Development follows international organizations” agendas and guidelines that have changed throughout history. Thus, in addition to exploring the main creditor sources, sectors, and federal units of destination of International Development Financing to Brazil, the article verified how the characteristics of international financing received between 2000-2015 and post-2015 reflect the agendas and guidelines of International Development Cooperation of the respective periods, namely, the Millennium Development Goals (2000-2015) and the Sustainable Development Goals (2015-2030). As a result, in addition to presenting a pioneering exploratory analysis of the data, it was possible to verify an inflection of external financing received by Brazil after 2015 in the direction of the current agenda and guidelines of International Development Cooperation. Finally, the paper presents directions for future research agendas.

The Future of the U.S.-Philippines Alliance: Declining Democracy and Prospects for U.S.-Philippines Relations after Duterte

executive summary: This article examines the Philippines' democracy under the administration of President Rodrigo Duterte and assesses the ramifications of democratic decline for the future of the U.S.-Philippines alliance under the next administration. main argument The anti-democratic policies of the Duterte administration have subverted institutional and societal checks on executive power, threatening the U.S.-Philippines alliance as an instrument of U.S. strategy in the Indo-Pacific. Duterte successfully reshaped domestic politics to augment his regime's influence over the legislature, judiciary, local governments, military, and economy, and openly sought to jettison the alliance for closer diplomatic and economic ties with China that would help him subvert domestic checks and balances on his administration. To repair and augment its alliance with the Philippines, the U.S. must recognize that the country's democratic decline is highly unlikely to reverse once Duterte leaves office and should transparently develop policies to incentivize the next administration and policymakers in the Philippines to roll back Duterte's anti-democratic policies. policy implications • If Duterte's successor continues to consolidate power domestically by weakening institutional checks on the administration's authority and coercing political opposition into silence or compliance, military cooperation between the U.S. and the Philippines will falter and create new vulnerabilities threatening U.S. interests in the Pacific region. • The Biden administration should reconfigure U.S. security assistance under the schema of positive conditionality to discourage further efforts to undermine democratic governance and degrade human rights conditions from the next presidential administration in the Philippines. U.S. assistance should also be optimized to support the Philippines' military modernization while prioritizing economic and technical cooperation to mitigate the challenges imposed by the Covid-19 pandemic, economic recession, and pervasive low-intensity conflict. • Whereas the application of sanctions on individuals responsible for supporting human rights violations can be a coercive tool of diplomacy in extremis, it is more important that the U.S. offer inducements for curtailing these violations through bilateral efforts to expand investments from U.S. companies to Philippine business, particularly through the U.S. International Development Finance Corporation and the Millennium Challenge Corporation.

Scaling Innovation Hubs: Impact on Knowledge, Innovation and Entrepreneurial Ecosystems in Tanzania

This study has explored the impact of innovation hubs on knowledge, innovation and entrepreneurial ecosystems. To gain deeper insights, the study adopted an exploratory case study design along a qualitative approach to conduct an empirical investigation. The study reveals a noticeable contribution of the X-Innovation Hub in empowering youths in aspects of knowledge co-creation and transfer, and promotion of diverse innovations. The findings of the study also disclose that the contribution of the innovation hub in transforming innovations into entrepreneurial opportunities is still unsatisfactory. Furthermore, the findings suggest that not all start-ups emanating from the hub are taking off. This is due to various undermining factors such as financial constraints and unfriendly legal frameworks. For X-Innovation Hub to satisfactorily and sustainably contribute to national innovation systems, deliberate efforts must be made, and strategies put in place by different stakeholders such as the government. Particularly, diversification of funding sources to minimise dependence on international development funding agencies and organisations is important.

Validation of the Interagency Integrated Triage Tool in a resource-limited, urban emergency department in Papua New Guinea: a pilot study

BackgroundThe Interagency Integrated Triage Tool (IITT) is a three-tier triage system designed for resource-limited emergency care (EC) settings. This study sought to assess the validity and reliability of a pilot version of the tool in an urban emergency department (ED) in Papua New Guinea. MethodsA pragmatic observational study was conducted at Gerehu General Hospital in Port Moresby, commencing eight weeks after IITT implementation. All ED patients presenting within the subsequent two-month period were included. Triage assessments were performed by a variety of ED clinicians, including community health workers, nurses and doctors. The primary outcome was sensitivity for the detection of time-critical illness, defined by ten pre-specified diagnoses. The association between triage category and ED outcomes was examined using Cramer's V correlation coefficient. Reliability was assessed by inter-rater agreement between a local and an experienced, external triage officer. FindingsAmong 4512 presentations during the study period, 58 (1.3%) were classified as category one (emergency), 967 (21.6%) as category two (priority) and 3478 (77.1%) as category three (non-urgent). The tool's sensitivity for detecting the pre-specified set of time-sensitive conditions was 70.8% (95%CI 58.2-81.4%), with negative predictive values of 97.3% (95%CI 96.7 - 97.8%) for admission/transfer and 99.9% (95%CI 99.7 - 100.0%) for death. The admission/transfer rate was 44.8% (26/58) among emergency patients, 22.9% (223/976) among priority patients and 2.7% (94/3478) among non-urgent patients (Cramer's V=0.351, p=0.00). Four of 58 (6.9%) emergency patients, 19/976 (2.0%) priority patients and 3/3478 (0.1%) non-urgent patients died in the ED (Cramer's V=0.14, p=0.00). The under-triage rate was 2.7% (94/3477) and the over-triage rate 48.2% (28/58), both within pre-specified limits of acceptability. On average, it took staff 3 minutes 34 seconds (SD 1:06) to determine and document a triage category. Among 70 observed assessments, weighted κ was 0.84 (excellent agreement). InterpretationThe pilot version of the IITT demonstrated acceptable performance characteristics, and validation in other EC settings is warranted. FundingThis project was funded through a Friendship Grant from the Australian Government Department of Foreign Affairs and Trade and an International Development Fund Grant from the Australasian College for Emergency Medicine Foundation.

Regime Complexity and Complex Foreign Policy: China in International Development Finance Governance

AbstractThis paper examines China’s involvement in the governance of international development finance (IDF), analyzes its approach to the IDF regime complex, and explains its strategic policy incoherence. It shows that in recent decades China has actively engaged with the elemental IDF regimes at multiple levels – global, regional, cross‐regional, subregional, and bilateral. It argues that the Chinese government has been strategically incoherent in its policy toward IDF governance, lending support to competing models and norms. China’s ‘forum linking’ strategy with regard to multilateral development banks has enhanced international cooperation while its unconventional bilateral development assistance programs have facilitated ‘forum shopping’ by the recipient countries, thus undermining the traditional IDF framework. There are multiple sources of China’s strategic policy incoherence. Besides the country’s multiple identities and complex interests, this paper highlights the impact of the fragmented nature of the regime complex and Chinese perception of this fragmentation.

Donors on tour: Philanthrotourism in Africa

Increasingly NGOs organize trips for their ‘major donors’ to visit development projects with the aim to enhance funding streams and fortify donor relations. Building on growing discussions of ‘philanthrocapitalism’ as a novel form of international development financing, we analyze such ‘donor trips’ as a unique tourism niche termed ‘philanthrotourism’. Based on empirical research concerning two such trips to Sub-Saharan Africa, we argue that philanthrotourism allows donors to experience jouissance—a particular type of ambivalent enjoyment that includes fascination with dark and horrific elements—as a core motivation to engage in staged development spectacles via their touristic experiences and thereby affirm their commitment to philanthropy. Our analysis highlights the importance of investigating psychological underpinnings of ethical tourism more generally.