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Allocating aid for COVID-19 support: A constrained optimisation approach.

Simon Feeny1

  • 1Centre for International Development, RMIT University, Melbourne, Victoria, Australia.

Health Economics
|December 11, 2023
PubMed
Summary

This study developed a model for COVID-19 aid allocation, finding low-income countries needed more support. Current aid distribution favored middle-income nations, highlighting the need for a transparent, needs-based funding formula.

Keywords:
COVID-19aid allocationforeign aid

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Area of Science:

  • Global Health
  • Development Economics
  • Public Policy

Background:

  • The COVID-19 pandemic necessitated unprecedented global aid efforts.
  • Existing aid allocation mechanisms may not adequately reflect pandemic-specific needs.
  • Official Development Assistance (ODA) plays a crucial role in global health security.

Purpose of the Study:

  • To develop a prescriptive model for equitable inter-country allocation of COVID-19 aid.
  • To assess current aid distribution against a needs-based framework.
  • To inform future pandemic preparedness and response funding.

Main Methods:

  • A prescriptive model was developed based on three dimensions of need: hazard/exposure, vulnerability, and coping capacity.
  • The model considered an overall aid budget constraint for ODA-eligible countries.
  • Prescribed aid allocations were compared with actual 2020 donor support.

Main Results:

  • Low-income countries were identified as needing a greater share of COVID-19 aid than they received.
  • Middle-income countries generally received more COVID-19 donor support than the model suggested.
  • Model findings remained broadly consistent across sensitivity analyses with varying weights and parameters.

Conclusions:

  • Current COVID-19 aid allocation practices may not align with a needs-based approach.
  • A transparent, needs-based funding formula is recommended for global pandemic response.
  • Equitable resource distribution is critical for effective global health crisis management.