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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.

Suggested Citation

  • Becerra, Oscar & Cavallo, Eduardo & Noy, Ilan, 2013. "Where is the money? Post-disaster foreign aid flows," Working Paper Series 3047, Victoria University of Wellington, School of Economics and Finance.
    • Handle: RePEc:vuw:vuwecf:3047
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/3047
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    1. Erik Brynjolfsson & Astrid Dick & Michael Smith, 2010. "A nearly perfect market?," Quantitative Marketing and Economics (QME), Springer, vol. 8(1), pages 1-33, March.
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    1. Ilan Noy & Christopher Edmonds, 2019. "Increasing fiscal resilience to disasters in the Pacific," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 97(3), pages 1375-1393, July.
    2. Diana De Alwis & Ilan Noy, 2019. "Sri Lankan households a decade after the Indian Ocean tsunami," Review of Development Economics, Wiley Blackwell, vol. 23(2), pages 1000-1026, May.
    3. 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).
    4. Devendra Kumar Jain & Asif Chida & R. D. Pathak & Raghbendra Jha & Stephanie Russell, 2022. "Climate risk insurance in Pacific Small Island Developing States: possibilities, challenges and vulnerabilities—a comprehensive review," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(3), pages 1-21, March.
    5. Ilan Noy & Christopher Edmonds, 2016. "The Economic and Fiscal Burdens of Disasters in the Pacific," CESifo Working Paper Series 6237, CESifo.
    6. Ryota Nakatani, 2019. "A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change," IMF Working Papers 2019/186, International Monetary Fund.
    7. Ilan Noy, 2016. "Natural disasters in the Pacific Island Countries: new measurements of impacts," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 7-18, November.
    8. Ryota Nakatani, 2021. "Fiscal Rules for Natural Disaster- and Climate Change-Prone Small States," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    9. Andreas Fuchs & Hannes Öhler, 2021. "Does private aid follow the flag? An empirical analysis of humanitarian assistance," The World Economy, Wiley Blackwell, vol. 44(3), pages 671-705, March.
    10. Balaei, Behrooz & Noy, Ilan & Wilkinson, Suzanne & Potangaroa, Regan, 2021. "Economic factors affecting water supply resilience to disasters," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    11. Fuchs, Andreas & Öhler, Hannes, 2021. "Does private aid follow the flag? An empirical analysis of humanitarian assistance," Open Access Publications from Kiel Institute for the World Economy 230193, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

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