Official Development Assistance Research Articles

How feasible is it to mobilize $31 billion a year for pandemic preparedness and response? An economic growth modelling analysis

BackgroundCovid-19 has reinforced health and economic cases for investing in pandemic preparedness and response (PPR). The World Bank and World Health Organization (WHO) propose that low- and middle-income governments and donor countries should invest $31.1 billion each year for PPR. We analyse, based on the projected economic growth of countries between 2022 and 2027, how likely it is that low- and middle-income country governments and donors can mobilize the estimated funding.MethodsWe modelled trends in economic growth to project domestic health spending by low- and middle-income governments and official development assistance (ODA) by donors for years 2022 to 2027. We modelled two scenarios for countries and donors – a constant and an optimistic scenario. Under the constant scenario we assume that countries and donors continue to dedicate the same proportion of their health spending and ODA as a share of gross domestic product (GDP) and gross national income (GNI), respectively, as they did during baseline (the latest year for which data are available). In the optimistic scenario, we assume a yearly increase of 2.5% in health spending as a share of GDP for countries and ODA as a share of GNI for donors.FindingsOur analysis shows that low-income countries would need to invest on average 37%, lower-middle income countries 9%, and upper-middle income countries 1%, of their total health spending on PPR each year under the constant scenario to meet the World Bank WHO targets. Donors would need to allocate on average 8% of their total ODA across all sectors to PPR each year to meet their target.ConclusionsThe World Bank WHO targets for PPR will not be met unless low- and middle-income governments and donors spend a much higher share of their funding on PPR. Even under optimistic growth scenarios, low-income and lower-middle income countries will require increased support from global health donors. The donor target cannot be met using the yearly increase in ODA under any scenario. If the country and donor targets are not met, the highest-impact health security measures need to be prioritized for funding. Alternative sources of PPR financing could include global taxation (e.g., on financial transactions, carbon, or airline flights), cancelling debt, and addressing illicit financial flows. There is also a need for continued work on estimating current PPR costs and funding requirements in order to arrive at more enduring and reliable estimates.

The impact of national savings on economic development: a focused study on the ten poorest countries in Sub-Saharan Africa

The purpose of this study is to examine the impact of national savings on economic development, as measured by the Human Development Index (HDI), Inequality-adjusted HDI (iHDI), and Multidimensional Poverty Index (MPI), in ten of the poorest countries in Sub-Saharan Africa. The study employs a sequential Generalized Method of Moments (GMM) analysis to address potential endogeneity issues and account for the dynamic nature of the relationships, covering the period from 2009 to 2019. The findings reveal a complex relationship between national savings and the selected development indicators. While national savings exhibit positive impacts on HDI and iHDI, the results are not consistently statistically significant across all the sequential models. However, the analysis suggests that national savings have a positive influence on reducing multidimensional poverty, as measured by MPI, particularly when effectively channeled into productive investments. The study also highlights the significant positive impact of government expenditure and foreign direct investment (FDI) on human development, underscoring the importance of strategic public investments and foreign capital. The results suggest that while national savings are crucial, their effective utilization is essential for enhancing human development indices. Strategic investments in public goods and foreign capital are also important. The mixed effects of inflation and official development assistance (ODA) emphasize the need for stable economic policies and effective utilization of foreign aid. The modest positive impact of institutional quality suggests that improvements in governance and institutional frameworks can contribute to human development. The findings underscore the need for policies promoting financial inclusion, efficient public expenditure, foreign direct investment, and stable macroeconomic conditions to leverage national savings for economic development. The study’s findings provide valuable insights for policymakers in Sub-Saharan Africa, highlighting the need for comprehensive strategies that leverage national savings, public expenditure, and foreign investment to drive sustainable economic development and poverty reduction.

Prevalence of all epilepsies in urban informal settlements in Nairobi, Kenya: a two-stage population-based study

WHO estimates that more than 50 million people worldwide have epilepsy and 80% of cases are in low-income and middle-income countries. Most studies in Africa have focused on active convulsive epilepsy in rural areas, but there are few data in urban settings. We aimed to estimate the prevalence and spatial distribution of all epilepsies in two urban informal settlements in Nairobi, Kenya. We did a two-stage population-based cross-sectional study of residents in a demographic surveillance system covering two informal settlements in Nairobi, Kenya (Korogocho and Viwandani). Stage 1 screened all household members using a validated epilepsy screening questionnaire to detect possible cases. In stage 2, those identified with possible seizures and a proportion of those screening negative were invited to local clinics for clinical and neurological assessments by a neurologist. Seizures were classified following the International League Against Epilepsy recommendations. We adjusted for attrition between the two stages using multiple imputations and for sensitivity by dividing estimates by the sensitivity value of the screening tool. Complementary log-log regression was used to assess prevalence differences by participant socio-demographics. A total of 56 425 individuals were screened during stage 1 (between Sept 17 and Dec 23, 2021) during which 1126 were classified as potential epilepsy cases. A total of 873 were assessed by a neurologist in stage 2 (between April 12 and Aug 6, 2022) during which 528 were confirmed as epilepsy cases. 253 potential cases were not assessed by a neurologist due to attrition. 30 179 (53·5%) of the 56 425 individuals were male and 26 246 (46·5%) were female. The median age was 24 years (IQR 11-35). Attrition-adjusted and sensitivity-adjusted prevalence for all types of epilepsy was 11·9 cases per 1000 people (95% CI 11·0-12·8), convulsive epilepsy was 8·7 cases per 1000 people (8·0-9·6), and non-convulsive epilepsy was 3·2 cases per 1000 people (2·7-3·7). Overall prevalence was highest among separated or divorced individuals at 20·3 cases per 1000 people (95% CI 15·9-24·7), unemployed people at 18·8 cases per 1000 people (16·2-21·4), those with no formal education at 18·5 cases per 1000 people (16·3-20·7), and adolescents aged 13-18 years at 15·2 cases per 1000 people (12·0-18·5). The epilepsy diagnostic gap was 80%. Epilepsy is common in urban informal settlements of Nairobi, with large diagnostic gaps. Targeted interventions are needed to increase early epilepsy detection, particularly among vulnerable groups, to enable prompt treatment and prevention of adverse social consequences. National Institute for Health Research using Official Development Assistance.

AFGHANISTAN: THE ECONOMIC IMPACT OF ARMED CONFLICT

This study examines the economic impact of armed conflict in Afghanistan. During the armed conflict between 1978 and 2021, the country received $88 billion in official development assistance (ODA) and over $136 billion in war-induced USAID funding. We found that the one-year Afghan armed conflict, with an average of 17,661 battle-related deaths, increases the GDP per capita by at least 1.9%. Comparatively, a one-year US-led war relative to a USSR-led war increases the GDP per capita by at least 5.7%; in contrast, a one-year civil war reduces it by 4.1%. In addition, our cost estimation suggests that between 2002 and 2021, at least $40.9 ± 5% billion (45.9%) of the Afghan state budget is spent on war-related and war-affected institutions. This is equal to 1,062% of Afghanistan’s total GDP in 2002 and 280% in 2021. Moreover, this study will be helpful in understanding the implications of the Sustainable Development Goals and achieving specific targets such as Goal 8 (economic growth) and Goal 16 (peace and inclusive societies) in Afghanistan. Keywords. Economic impact, GDP, armed conflict, USSR-led War, US-led War, civil war, Afghanistan.

Revisiting the nexus between development aid, institutions, and growth: A global evidence

AbstractObjectiveThis study mainly focuses on the relationship between development aid and growth as well as examines the role of the institutional development levels of countries in this relationship and makes economic inferences.MethodsThe analysis is conducted for 64 countries receiving official development assistance in the 2000–2020 period. To provide robust estimates in these studies, the Driscoll and Kraay estimator is used after fixed and random effects models.ResultsIn almost all of the estimated models, a significant relationship between official development assistance per capita and growth is found. Moreover, the models with institutional factors and interaction terms also support the results. According to the robust estimation results, official development assistance per capita positively affects growth.ConclusionThe results for all countries do not mean that good policies and strong institutions are unnecessary. In contrast, they show that the priority is the sum of aid per capita.

Shifting Paradigms: Exploring the Tapestry of Global Assistance and Its Resonance within Nigeria's Fiscal Framework"

This study critically explores the Tapestry of Global Assistance and Its Resonance within Nigeria's Fiscal Framework from 1981 to 2021, the study objectively explored the degree to which various forms of foreign aid—such as official development assistance, foreign grants, and technical aid—impact public expenditure growth within a shifting economic paradigm. Employing statistical measures such as the Coefficient of Determination (R²), F-statistics, and the Durbin-Watson statistic. Incorporating variables such as foreign technical cooperation (FTECH), foreign grants (FGRANT), official development assistance (FODA), multilateral foreign aids (MFAID), and exchange rates (EXR), the study employs time-series data from the World Bank Development Indicators and a modified regression approach. The analysis seeks to delineate the complex dynamics between external financial inputs and internal fiscal outcomes over the period from 1981 to 2021. The findings reveal a nuanced landscape where foreign aid, though impactful, does not singularly dictate fiscal changes, suggesting a need for broader, more inclusive economic strategies that leverage both external and internal resources. Augmented Dickey-Fuller (ADF) tests confirm the stationarity of these variables, validating their reliability in modeling economic impacts. The ARDL bound test results indicate no long-term sustainable relationship between foreign aid components and public expenditure growth, pointing to a more nuanced interaction between foreign aid inflows and Nigeria’s fiscal strategies, whether expansive or restrictive.

The Moderating Role of Institutional Quality in the Relationship between Foreign Capital Inflows and Stock Market Development: A Panel Data Analysis

The study examines the impact of foreign capital inflows (FCI) on stock market development (SMD), with a specific focus on the moderating role of institutional quality (IQ). The study uses a panel dataset of 28 emerging economies for the period of 1998 to 2022. The findings reveal that both international remittances (REM) and foreign portfolio investment (FPI) have a significant positive impact on SMD. These findings imply that REM inflows enhance the availability of financial resources in the economy, promoting stock market growth and stability. Similarly, FPI increases market liquidity and fills the saving-investment gap in the host country, thereby increasing SMD. However, the results show that foreign direct investment (FDI) has a significant negative impact on SMD. This finding implies that FDI could negatively affect SMD in the host country due to the diversion of investments from the stock market to other business ventures, profit repatriation, and crowding-out effects on domestic investment by creating strong competition in the input market, making it difficult for listed domestic firms to operate. Moreover, the study reveals two unique and interesting findings. First, official development assistance (ODA) has a significant negative impact on SMD, suggesting that ODA reduces SMD due to the misallocation of resources due to aid conditions and economic instability, and the crowding-out effect on private investments. Second, IQ positively moderates the relationship between all forms of FCI and SMD in the sampled countries, implying that host countries with a good institutional framework and high IQ tend to experience high SMD.

Study on Overseas Expansion Strategies for Small and Medium-Sized Korean Construction Companies Using PEST Analysis

The purpose of this study is to research overseas expansion strategies for small and medium-sized construction companies(SMCCs) in South Korea. The research methodology employs PEST (Political, Economic, Social, and Technological) analysis within the construction industry. Findings suggest increased investment in research and development, adoption of eco-friendly technologies, and localization strategies. By enhancing competitiveness through advanced technology adoption and strengthening sustainable practices aligned with global standards, firms can mitigate political and economic risks. Policy implications include collaboration with government and relevant agencies to support Official Development Assistance (ODA) projects, provide financial assistance, manage risks, and establish integrated information platforms. Moreover, enhancing capabilities through education and consulting programs in technology, law, finance, and risk management prepares firms for international expansion. This study offers specific solutions to Korean small and medium-sized construction companies, emphasizing enhanced policy support to successfully pursue expansion and growth opportunities in the global market.

Mainstreaming gender in Korean development assistance: A review of Vietnam's “selective ownership” and the local gender network

Korea, once a recipient turned donor, faces deficit in addressing gender mainstreaming within its Official Development Assistance (ODA). This paper asserts that it is imperative to close gender gaps, as it seeks to consolidate its standing as a reliable donor. The article starts by examining efforts to establish a Korean development model rooted in the historical Saemaul Undong (SMU). Recognizing that SMU lacks a substantial legacy in terms of gender projects and acknowledging the dissenting points of debate regarding the model's contribution to the partner country's local ownership, this research dissects the meaning and practical application of local ownership. Shifting to the specific context of Vietnam, a major partner country of Korea where the preference for ODA loans has been increasing, the article draws from field research to expose the selective ownership of the government. The research emphasizes the crucial role of the local gender network in such selective ownership, where the government shows interest solely in the lending terms of loans, with no attention to gender mainstreaming. Alongside the active involvement of national women's machinery and civil society activists, the significance of national gender consultants in loan projects is stressed, who play a pivotal role in bridging the gap between global donors' gender mainstreaming policies and on-the-ground local implementation.

Importance of official development assistance in improving the economic cycles of Economic and Monetary Community of Central Africa countries

Importance of official development assistance in improving the economic cycles of Economic and Monetary Community of Central Africa countries

Dynamics of investment in agriculture in Burkina Faso

ABSTRACT Because of rapid urbanisation and increasing food price volatility, Burkina Faso was compelled to prioritise boosting rice production, leading to a ten-year rice development project (NRDS), commencing in 2009. During the project, the country’s rice production was 3.2 times higher, on average, than the previous decade, while funding to agriculture increased by 210 per cent. This study concerns the dynamics of funding in influencing rice production according to their sources, by uniquely examining mediation effects through cropland extension, rice yield, worker productivity and land productivity. No significant difference between public and private funding are found. Official development assistance and remittance are fully mediated by cropland extension and worker productivity improvement, while other funds are partially mediated. The NRDS might do well to address the disclosed shortcomings in this study, for example, the stagnation of rice yields may deteriorate the food security of the poor.

Agricultural Aid and Cocoa Production in Developing Countires: Examining Ghana as a Case Study

Aid, especially Official Development Assistance (ODA), remains a lifeline for growth and poverty alleviation in developing countries. However, there is a trend in rising ODA and the variance between pledged and actual aid delivered. Therefore, there is a need for an analysis of ODA's effective use, particularly in critical sectors such as agriculture that underpin the economies and livelihoods in the developing world. This study assesses ODA's impact on the cocoa industry as an economic pillar and a significant export for many developing countries. Ghana shall serve as a case study, given its substantial dependence on the cocoa industry.

Do foreign direct investment and foreign aid accelerate economic growth in developing countries?

PurposeThis paper aims to study the impact of foreign direct investment (FDI) and official development assistance (ODA) on the economic growth of developing countries. This paper classifies sample countries into two groups (low- and high-income developing countries) based on income level and investigates whether the two sources of foreign capital have different effects on the economic development of each subgroup of countries.Design/methodology/approachThe authors analyze panel data on 93 countries from 1981 to 2020 using a two-stage least squares (2SLS) estimation. The 2SLS method is used to overcome the endogeneity problem between economic growth and FDI. The sources of the data are World Bank and OECD.FindingsFirst, FDI inflows tend to accelerate per capita GDP growth in both total sample countries and within both groups of countries. Second, ODA has a significant impact on per capita GDP growth only for low-income developing countries. This result indicates that ODA seems to be particularly important for low-income developing countries.Practical implicationsThis paper suggests policy implications that low-income developing countries should create an environment for more ODA funds to flow into themselves with efforts such as improving the credibility and effectiveness of the government related to ODA programs. It also provides implications for donors of ODA to focus their ODA resources on low-income developing countries to more effectively achieve the goal of helping developing countries’ economic growth.Originality/valueThis paper investigates whether FDI and ODA have different effects on the economic development of low- and high-income developing countries. To the best of authors’ knowledge, this point is not addressed in existing studies.

The impact of external financing during wartime on the economy of a country in war

This study delves into the effects of external financial support (official development assistance and foreign direct investments) on economic activity and welfare based on data from five nations injured by similar military conflicts from 2006 to 2021. Focusing on Ukraine, the research recommends ways for policymakers to navigate external financing during wartime. The employment rate, GDP per capita, inflation rate, and exports are the foundations for our analysis. The methodological approach employed regression analysis to measure the economic effect of external financing in wartime in these conflict-ridden nations. The findings reveal that increased foreign direct investment during wartime correlates with reduced employment rates, heightened GDP per capita, and increased exports. In addition, the negative impact of official development assistance ODA on employment was found, and it had a positive effect on exports but no significant effects on GDP per capita. A statistically significant impact on the inflation rate was not seen.

Libraries’ roles in media and information literacy education: Obtaining the opinions of South Korean volunteer librarians through the Delphi method

South Korea’s official development assistance activities emphasize the significant role of education, with increasing attention towards the potential of libraries. Media and information literacy has become imperative for leading a productive life, highlighting the crucial role of libraries in enhancing media and information literacy competencies, particularly in low- and middle-income countries. However, limited research exists on this topic. This study explores how libraries could contribute to improving the media and information literacy competencies of people in low- and middle-income countries, drawing from interviews mainly with South Korean volunteer librarians with experience in low- and middle-income countries using the Delphi method. The challenges in supporting media and information literacy capacity-building in libraries in low- and middle-income countries include a shortage of skilled personnel, limited resources, inadequate understanding of public development assistance and global citizenship, and insufficient publicity. The survey participants emphasized the need for specific qualifications for librarians to effectively contribute to media and information literacy education. They recommended continuous group-based training, incorporating field education and online courses to build media and information literacy competencies.

The Catalytic Impact of IMF Lending on Official Development Assistance

The Catalytic Impact of IMF Lending on Official Development Assistance

Towards A Debt-Overhanged Economy: Causes and Consequences for the Economy of Pakistan

The reliance on debt is not only essential but also a key factor in economic growth of poor countries like Pakistan because of a meager tax base and an annuity of fiscal deficit. Trade surplus is a common tool that covers the budget deficit but twin deficit makes the economic conditions worst. The excessive borrowing can stimulate the economic cycle in the short run but in the in the long-run it creates the issues of debt-overhang. This timely study is an attempt to investigate the short-run and long-run dynamics of debt on the economy of Pakistan. The empirical results (ARDL co-integration) suggests that long-run relationships exist among the variables under consideration such as Exports and Remittances have negative effects on debt, while other variables have positive effects. The Error-Correction-Model (ECM) analysis indicates mean-reverting behavior, where the dependent variable returns to its long-run equilibrium. Post-estimation tests support the model's assumptions. The Jarque–Bera test shows that residuals exhibit normal distribution. CUSUM and CUSUMsq tests indicate reliability and stability of the regression model. There is a long-run relationship between exports of goods and services (EGS), imports of goods and services (IGS), gross fixed capital formation (GFCF), net official development assistance (NOD), personal remittances (PRR), and debt in Pakistan. In the long-run, Exports of goods and services have a negative impact, Imports of goods and services have a significantly positive impact, Gross fixed capital formation has a positive impact, Net official development assistance has a positive impact, Personal remittances have a negative impact on debt respectively. However, Trade as a percentage of GDP has an insignificant impact on debt in the long run. The study also found that the impact of each variable on Debt is different in the short run. Overall, the study provides valuable insights into the factors that affect Debt in Pakistan.

케냐 교사훈련 ODA 사업의 오너십과 현지화

The purpose of this study is to examine whether ownership and localization discourses are practically applied to a teacher training ODA(Official Development Assistance) project in Kenya and how these efforts can contribute to the project’s sustainability. This study adopted a qualitative research approach and the primary data collection method is an interview with various stakeholders and participants of the project. The research also used participant observation, and document analysis. The result shows that Ownership was ensured at a high level(government), but it was not promoted at the lower level(end-beneficiaries). Localization of knowledge contributed to making the training contents more compatible with the condition of Kenya. However, teachers still feel challenged to apply the knowledge acquired from the project in classroom practices. Based on these findings, I suggest the necessity of motivating teachers to empower themselves and take responsibility to change classroom practices on their own. And more comprehensive approach is needed to improve surrounding circumstances that makes teachers hard to be innovative and proactive.

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.

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.