Why Are Aid Projects Less Effective in the Pacific?

29 Pages Posted: 22 Jun 2020

See all articles by Terence Wood

Terence Wood

Australian National University (ANU) - Crawford School of Public Policy

Sabit Otor

affiliation not provided to SSRN

Matthew Dornan

Australian National University (ANU) - Crawford School of Public Policy

Date Written: May 29, 2020

Abstract

On average, appraisals find aid projects to be less effective in the Pacific than elsewhere in the developing world. In this study, we use a new multi-donor data set to study why aid projects are less effective in the region. We find the clearest impediments to effectiveness in the Pacific are remoteness and small population size. The relatively politically free nature of many Pacific states also appears to be associated with lower project effectiveness. The impact of remoteness and population makes sense — both traits make aid logistics harder. Our study is not the first to find aid is less effective in freer countries, yet the finding for the Pacific is puzzling, a matter we take up in the discussion section of the paper. We also study which types of projects are least likely to work in the Pacific. In doing this we are impeded by data constraints. However, we find clear evidence that humanitarian projects tend to be less effective in the Pacific than in other countries.

Keywords: Aid Projects, Aid Effectiveness, Evaluation, Pacific Island Countries, Australian Aid Program

JEL Classification: F35, O1

Suggested Citation

Wood, Terence and Otor, Sabit and Dornan, Matthew, Why Are Aid Projects Less Effective in the Pacific? (May 29, 2020). Development Policy Centre Discussion Paper No. 87, 2020, Available at SSRN: https://ssrn.com/abstract=3613490 or http://dx.doi.org/10.2139/ssrn.3613490

Terence Wood (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, Australian Capital Territory ACT 0200
Australia

Sabit Otor

affiliation not provided to SSRN

Matthew Dornan

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, Australian Capital Territory ACT 0200
Australia

HOME PAGE: http://crawford.anu.edu.au/crawford_people/content/staff/mdornan.php

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