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Organization of Disaster Aid Delivery: Spending Your Donations

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  • J. Vernon Henderson
  • Yong Suk Lee

Abstract

This article examines how different organizational structures in disaster aid delivery affect house aid quality. We analyze three waves of survey data on fishermen and fishing villages in Aceh, Indonesia, following the 2004 tsunami. We categorize four organizational structures based on whether and to whom donors contract aid implementation. Compared to bilateral contracting between donors and implementers, donors that vertically integrate and do their own implementation offer the highest-quality housing as rated by village heads and have fewer counts of faults, such as leaky roofs and cracked walls, as reported by fishermen. However, they shade in quality as they lose dominance as the leading aid agency in a village. Domestic implementers and the government agency that was responsible for significant portions of aid delivery provide significantly lower-quality aid. We also examine how the imposition of shared ownership, the primary social agenda for boat aid agencies, affects boat aid quality. We find that village and fishing leaders steer poor-quality boats toward those whom shared ownership was imposed upon, often lower-status fishermen.

Suggested Citation

  • J. Vernon Henderson & Yong Suk Lee, 2015. "Organization of Disaster Aid Delivery: Spending Your Donations," Economic Development and Cultural Change, University of Chicago Press, vol. 63(4), pages 617-664.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/681277
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    Cited by:

    1. Emily Skarbek, 2014. "The Chicago Fire of 1871: a bottom-up approach to disaster relief," Public Choice, Springer, vol. 160(1), pages 155-180, July.
    2. Prema-chandra Athukorala, 2012. "Disaster, Generosity and Recovery: Indian Ocean Tsunami," Departmental Working Papers 2012-04, The Australian National University, Arndt-Corden Department of Economics.
    3. Prema-chandra Athukorala, 2012. "Indian Ocean Tsunami: Disaster, Generosity and Recovery," Asian Economic Journal, East Asian Economic Association, vol. 26(3), pages 211-231, September.

    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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