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Where is the money? Post-disaster foreign aid flows

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  • Becerra, Oscar
  • Cavallo, Eduardo
  • Noy, Ilan

Abstract

We describe the flows of aid after large catastrophic natural disasters by using the extensive record of bilateral aid flows, by aid sector, available through the OECD’s Development Assistance Committee. For each large donor, we identify the extent of cross-sector re-allocation that is occurring in the aftermath of large disasters whereby humanitarian aid increases but other types of aid may decrease. Our evidence suggests that the expectation of large surges in post disaster aid flows is not warranted given the past diversity of experience of global foreign aid by donor and by event. We find no evidence, however, that donors reallocate aid between recipient countries (cross-recipient reallocation). These observations suggest that countries which are predicted to face increasing losses from natural disasters in the coming decades (and almost all are) should be devoting significant resources for prevention, insurance, and mitigation.

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File URL: http://researcharchive.vuw.ac.nz/handle/10063/3047
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Bibliographic Info

Paper provided by Victoria University of Wellington, School of Economics and Finance in its series Working Paper Series with number 3047.

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Date of creation: 2013
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Handle: RePEc:vuw:vuwecf:3047

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Postal: Alice Fong, Administrator, School of Economics and Finance, Victoria Business School, Victoria University of Wellington, PO Box 600 Wellington, New Zealand
Phone: +64 (4) 463-5353
Fax: +64 (4) 463-5014
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Web page: http://www.victoria.ac.nz/sef
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Related research

Keywords: Foreign aid; Natural disasters; Official Development Assistance (ODA); Development Assistance Committee (DAC);

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  1. Erik Brynjolfsson & Astrid Dick & Michael Smith, 2010. "A nearly perfect market?," Quantitative Marketing and Economics, Springer, vol. 8(1), pages 1-33, March.
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