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Aid Allocation and Targeted Development in an Increasingly Connected World

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  • Bermeo, Sarah Blodgett

Abstract

Aid donors pursue a strategy of targeted development with regard to recipient states. The determinants of aid allocation have shifted significantly. Industrialized states are increasingly unable to insulate themselves from spillovers caused by underdevelopment abroad. Donors attempt to use aid to decrease these spillovers, targeting developing countries where the effects on the donor are anticipated to be large. Once a recipient is chosen, concern for recipient government capacity guides the composition of aid. Empirical analysis of aid allocation from 1973 to 2012 demonstrates that, while explanations based on security and economic ties to the donor explain allocation well in the Cold War, the post-2001 period is best understood by incorporating a role for targeted development. This framework helps synthesize various findings in the aid allocation literature and has important implications for studying aid effectiveness.

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  • Bermeo, Sarah Blodgett, 2017. "Aid Allocation and Targeted Development in an Increasingly Connected World," International Organization, Cambridge University Press, vol. 71(4), pages 735-766, October.
    • Handle: RePEc:cup:intorg:v:71:y:2017:i:04:p:735-766_00
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    Cited by:

    1. Samuel Brazys & Krishna Chaitanya Vadlamannati & Tianyang Song, 2019. "Which Wheel Gets the Grease? Constituent Agency and Sub-national World Bank Aid Allocation," Working Papers 201907, Geary Institute, University College Dublin.
    2. Brandon Cuesta & Lucy Martin & Helen V. Milner & Daniel L. Nielson, 2021. "Foreign aid, oil revenues, and political accountability: Evidence from six experiments in Ghana and Uganda," The Review of International Organizations, Springer, vol. 16(3), pages 521-548, July.
    3. R. Melis Baydag & Stephan Klingebiel, 2023. "Partner country selection between development narratives and self‐interests: A new method for analysing complex donor approaches," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1199-1223, May.
    4. Ben Katoka & Huck‐ju Kwon, 2021. "A Paradox of New Deal and Foreign Aid for Fragile States in Sub‐Saharan Africa," Global Policy, London School of Economics and Political Science, vol. 12(5), pages 639-652, November.
    5. Tobias Heinrich & Yoshiharu Kobayashi, 2022. "Evaluating explanations for poverty selectivity in foreign aid," Kyklos, Wiley Blackwell, vol. 75(1), pages 30-47, February.
    6. Bernhard Reinsberg & Sebastian Dellepiane, 2022. "Development co‐operation by European regions: Introducing the subnational donor governance dataset," Development Policy Review, Overseas Development Institute, vol. 40(6), November.
    7. Kobayashi, Yoshiharu & Heinrich, Tobias & Bryant, Kristin A., 2021. "Public support for development aid during the COVID-19 pandemic," World Development, Elsevier, vol. 138(C).
    8. Krishna Chaitanya Vadlamannati & Yuanxin Li & Samuel Brazys & Alexander Dukalskis, 2019. "Building Bridges or Breaking Bonds? The Belt and Road Initiative and Foreign Aid Competition," Working Papers 201906, Geary Institute, University College Dublin.
    9. Kazunobu Hayakawa & Kohei Imai, 2022. "Who sends me face masks? Evidence for the impacts of COVID‐19 on international trade in medical goods," The World Economy, Wiley Blackwell, vol. 45(2), pages 365-385, February.
    10. Couharde, Cécile & Karanfil, Fatih & Kilama, Eric Gabin & Omgba, Luc Désiré, 2020. "The role of oil in the allocation of foreign aid: The case of the G7 donors," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 363-383.
    11. Allison Carnegie & Kimberly Howe & Adam Lichtenheld & Dipali Mukhopadhyay, 2022. "The effects of foreign aid on rebel governance: Evidence from a large‐scale US aid program in Syria," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 41-66, March.
    12. Samuel Brazys & Johan A. Elkink, 2021. "“Aid for Trade” Effectiveness? Micro-level Evidence from Nepal," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1493-1513, December.
    13. Eunbin Chung & Inbok Rhee, 2022. "Disasters and intergroup peace in sub-Saharan Africa," Journal of Peace Research, Peace Research Institute Oslo, vol. 59(1), pages 58-72, January.
    14. Corwin, Hillary, 2023. "Coercive and catalytic strategies for human rights promotion: State violence and foreign assistance," World Development, Elsevier, vol. 167(C).
    15. Kady Keita & Mr. Gene L. Leon & Frederico Lima, 2019. "Do Financial Markets Value Quality of Fiscal Governance?," IMF Working Papers 2019/218, International Monetary Fund.
    16. Ziff, Alix, 2023. "Aid accessibility: Equity & education in Kenya," International Journal of Educational Development, Elsevier, vol. 99(C).
    17. Schneider, Sebastian H. & Eger, Jens & Bruder, Martin & Faust, Jörg & Wieler, Lothar H., 2021. "Does the COVID-19 pandemic threaten global solidarity? Evidence from Germany," World Development, Elsevier, vol. 140(C).
    18. Issifou, Hamza, 2023. "Aides publiques étrangères, gouvernance et terrorisme en Afrique de l'ouest : quelles implications ? [Foreign public assistance, governance, and terrorism in west africa: what are the implications?," MPRA Paper 118879, University Library of Munich, Germany, revised 16 Oct 2023.
    19. Lauren L. Ferry & Emilie M. Hafner-Burton & Christina J. Schneider, 2020. "Catch me if you care: International development organizations and national corruption," The Review of International Organizations, Springer, vol. 15(4), pages 767-792, October.
    20. Alexandra O. Zeitz, 2021. "Emulate or differentiate?," The Review of International Organizations, Springer, vol. 16(2), pages 265-292, April.
    21. Kady Keita & Gene Leon & Frederico Lima, 2021. "Do Financial Markets Value Quality of Fiscal Governance?," Open Economies Review, Springer, vol. 32(5), pages 907-931, November.

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