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Aid fragmentation and volatility in the Pacific.
Terence Wood1, Imogen Nicholls2
1Development Policy Centre, Crawford School of Public Policy The Australian National University Canberra ACT Australia.
Asia & the Pacific Policy Studies
|July 12, 2021
Summary
Pacific aid volatility and fragmentation are significant issues, with project fragmentation and short-term aid flow changes being particularly severe. Non-traditional donors, while not driving overall trends, may contribute to aid volatility.
Area of Science:
- Development Economics
- International Relations
- Pacific Studies
Background:
- The Pacific region faces challenges in aid effectiveness.
- Understanding aid volatility and fragmentation is crucial for development.
- New datasets allow for analysis including non-traditional donors.
Purpose of the Study:
- To comprehensively document aid volatility and fragmentation in the Pacific.
- To analyze fragmentation across countries and projects.
- To assess the impact of non-traditional donors on aid patterns.
Main Methods:
- Utilizing a new dataset from the Lowy Institute.
- Analyzing aid flows to the Pacific, including from non-traditional donors.
- Comparing Pacific aid patterns with other global regions.
Main Results:
- Pacific aid volatility and project fragmentation are worse than in other regions.
- Fragmentation across donors is less prevalent but increasing in the Pacific.
- Non-traditional donors do not appear to drive overall fragmentation trends.
- Non-traditional donors may provide more volatile aid.
Conclusions:
- The Pacific faces significant challenges with aid volatility and project fragmentation.
- While non-traditional donors are not the primary drivers of fragmentation, their aid can be more volatile.
- Further research is needed to understand and mitigate these aid delivery challenges in the Pacific.
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