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Distortions in aid allocation of United Nations flash appeals: Evidence from the 2015 Nepal earthquake

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  • Eichenauer, Vera Z.
  • Fuchs, Andreas
  • Kunze, Sven
  • Strobl, Eric

Abstract

We examine the design and implementation of the United Nations Flash Appeal triggered in response to the highly destructive 2015 Nepal earthquake. We consider how local need and various distortions affect the proposed project number, the proposed financial amount, and the subsequent funding decision by aid donors. Specifically, we investigate the extent to which the allocation of this humanitarian assistance follows municipalities’ affectedness and their physical and socio-economic vulnerabilities. We then analyze potential ethnic, religious, and political distortions. Our results show that aid allocation is associated with geophysical estimates of the earthquake damage. Controlled for disaster impact, however, aid allocation shows little regard for the specific socio-economic and physical vulnerabilities. It is also worrisome that the allocation of the flash appeal commitments favors municipalities dominated by higher castes and disadvantages those with a greater distance to the Nepali capital Kathmandu.

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  • Eichenauer, Vera Z. & Fuchs, Andreas & Kunze, Sven & Strobl, Eric, 2020. "Distortions in aid allocation of United Nations flash appeals: Evidence from the 2015 Nepal earthquake," World Development, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:wdevel:v:136:y:2020:i:c:s0305750x20301492
    DOI: 10.1016/j.worlddev.2020.105023
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    Cited by:

    1. Pathak, Prakash & Schündeln, Matthias, 2022. "Social hierarchies and the allocation of development aid: Evidence from the 2015 earthquake in Nepal," Journal of Public Economics, Elsevier, vol. 209(C).
    2. Mogge, Lukas & McDonald, Morag & Knoth, Christian & Teickner, Henning & Purevtseren, Myagmartseren & Pebesma, Edzer & Kraehnert, Kati, 2023. "Allocation of humanitarian aid after a weather disaster," World Development, Elsevier, vol. 166(C).
    3. Bommer, Christian & Dreher, Axel & Perez-Alvarez, Marcello, 2022. "Home bias in humanitarian aid: The role of regional favoritism in the allocation of international disaster relief," Journal of Public Economics, Elsevier, vol. 208(C).
    4. Asmus, Gerda & Eichenauer, Vera & Fuchs, Andreas & Parks, Bradley, 2021. "Does India use development finance to compete with China? A subnational analysis," Kiel Working Papers 2189, Kiel Institute for the World Economy (IfW Kiel).
    5. BenYishay, Ariel & DiLorenzo, Matthew & Dolan, Carrie, 2022. "The economic efficiency of aid targeting," World Development, Elsevier, vol. 160(C).
    6. Stephan Schneider & Sven Kunze, 2021. "Disastrous Discretion: Ambiguous Decision Situations Foster Political Favoritism," KOF Working papers 21-491, KOF Swiss Economic Institute, ETH Zurich.
    7. Shakya, Shishir & Basnet, Subuna & Paudel, Jayash, 2022. "Natural disasters and labor migration: Evidence from Nepal’s earthquake," World Development, Elsevier, vol. 151(C).
    8. Paudel, Jayash, 2023. "Shaking things up: Do seismic shocks affect energy choices?," Energy Policy, Elsevier, vol. 172(C).
    9. Khusiman Pun & Kira Villa & Matías Fontenla, 2023. "The impact of Nepal's earthquake on the health status of rural children," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 710-734, May.

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    More about this item

    Keywords

    Humanitarian assistance; Disaster relief; Earthquake; United Nations; Asia; Nepal;
    All these keywords.

    JEL classification:

    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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