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Decentralized provision of disaster aid: aid fragmentation and the poverty implications

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  • Manabu Nose

    (The University of Tokyo)

Abstract

Despite large-scale humanitarian aid, the headcount poverty rate continued to rise after the 2004 Indian Ocean tsunami in Indonesia. Drawing on the unique survey that tracks households over seven years, this paper examines the causes of prolonged poverty and inequality. Donor fragmentation and the weakness in monitoring the quality of in-kind aid created sizable long-term welfare costs on the recipients. While local elite capture distorts the intra-village allocation, quantile regression found that spatial unevenness in available aid, with heterogeneous quality, had a persistent negative distributional impact on the lives of the poor.

Suggested Citation

  • Manabu Nose, 2022. "Decentralized provision of disaster aid: aid fragmentation and the poverty implications," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(5), pages 1098-1127, October.
    • Handle: RePEc:kap:itaxpf:v:29:y:2022:i:5:d:10.1007_s10797-021-09698-7
    DOI: 10.1007/s10797-021-09698-7
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    More about this item

    Keywords

    Decentralization; Donor competition; Disaster aid; Governance;
    All these keywords.

    JEL classification:

    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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