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Welcome to the First Tranche, the AidData blog--a forum for analysis and discussion of information about development finance, and how it can be used to improve development practice and research. The First Tranche publishes independent views and analysis from a variety of bloggers who are interested in aid transparency, aid effectiveness, and better/more accessible aid information.
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The First Tranche | a blog by the staff of AidData

Tuesday, November 27, 2012


Military Strategy or Poverty Reduction?: Investigating the Provincial Allocation of Aid to Afghanistan



Recent U.S. military interventions, relying on the coordination of military and humanitarian activities, have sparked an important debate over the appropriate use of development assistance. In Iraq and Afghanistan, many U.S. policymakers have viewed economic development as indispensable to U.S. combat efforts. Following the 2001 invasion of Afghanistan, then Secretary of State Colin Powell remarked, “I am serious about making sure we have the best relationship with the NGOs who are such a force multiplier for us, such an important part of our combat team.”

U.S. counterinsurgency (COIN) strategy explicitly calls for the harmonization of military and economic initiatives. The 2007 Army/Marine Corps Counterinsurgency Field Manual stresses the need for “maximum unity of effort” along all “logical lines of operations,” including reconstruction and economic development. Improving economic conditions is seen as crucial. It is believed that insurgents will “exploit a lack of employment or job opportunities to gain active and passive support for their cause.” The standard operating procedures manual for the Commanders’ Emergency Response Program (CERP)—an initiative that allows military commanders, at their discretion, to fund development projects in their areas of operational oversight—is unapologetically titled “Money as a Weapon System.”

Many NGOs and commentators deride what they call the securitization, militarization, or weaponization of aid. They highlight a loss in the neutrality and impartiality of humanitarian work (Macrae and Leader 2001; Shannon 2008; Terry 2011). They also point to the dangers of subordinating development goals to a security agenda (Howell and Lind 2009; Woods 2005). Others have sounded the alarm about the ineffectiveness of CERP-inspired projects. See, for example, Center for Global Development’s Rethinking US Foreign Assistance Blog, where Justin Sandefur posts on “Aid, WHAM, and Afghanistan.”

One of the most serious allegations about the militarization of aid is the formation of a so-called ‘hierarchy of victims,’ in which development activities in strategically important areas are funded at the expense of the strategically insignificant, but poorer areas. By assigning priority to military needs, the conventional wisdom is that securitized aid crowds out humanitarian and poverty reduction efforts.

I recently investigated whether the provincial distribution of U.S. aid in Afghanistan more closely aligns with military priorities or humanitarian need. Using Spearman’s R and Pearson’s R correlations, I find a significant, positive relationship between the provincial distribution of U.S. aid in Afghanistan and a province’s level of combatant violence. By contrast, I find some evidence of a negative correlation between the level of poverty by province and the allocation of aid.

The figures above depict the positive relationship between combatant violence and the allocation of aid by province. I operationalize combatant violence using a 2007 ISAF count of coalition fatalities by province and a 2008 provincial count of attacks by armed opposition groups against any target. The plots in the top row reflect significant, positive correlations between the log count of combatant fatalities and two different measures of per capita development assistance: (1) CERP and Provincial Reconstruction Team (PRT) spending, and (2) total government and donor spending. The lower plot shows a similarly significant relationship between the number of attacks and CERP and PRT spending.

So, there is some evidence of a significant, positive relationship between level of provincial violence and receipt of aid per capita in Afghanistan. By contrast, poverty—measured here as the inverse of household consumption, as reported in Afghanistan’s only comprehensive poverty profile, the 2007-08 National Risk and Vulnerability Assessment (NRVA)—is negatively correlated with total government and donor spending. When comparing provincial household consumption against the allocation of total government and donor spending, Spearman’s R and Pearson’s R correlations both indicate that this relationship is significant at the p=0.05 level. The negative association lends support to the claim that aid in Afghanistan is not distributed on the basis of development and poverty reduction objectives.

But there is an interesting twist: the provincial poverty rate is positively correlated with USAID spending in 2009, and this correlation is significant at the p=0.07 level. Thus, USAID seems to do a better job of targeting its provincial aid allocation according to economic and humanitarian needs—or at least they did  in 2009. This is an important complement to the more dire findings reported by Justin Sandefur and Danny Cutherell, who constructed an a measure of aid distribution by lumping together 2010 USAID and CERP/PRT aid flows.

The lack of reliable, sub-national data has meant that, with very few exceptions, only partial analyses of the spatial determinants of aid distribution are possible. Thus, researchers who study the geographic dispersion of aid can only draw tentative conclusions. This is especially true for studies on aid in combat zones like Iraq and Afghanistan. However, independent, spatial assessments of how donor agencies and military organizations target their scarce resources should become more feasible as aid become more transparent and the practice of geocoding aid projects becomes more prevalent. Interested readers should also keep their eyes peeled for the release of the 2010-11 NRVA, which is scheduled for the end of this year.


Jake Douglas (‘14) is a former research assistant for the Making Reform Incentives Work  project at the College of William and Mary.



Thursday, November 15, 2012


Is international aid for biodiversity targeted to the right countries?

This guest post is a continuation of AidData's series looking at the relationship between development finance and the environment. For more on the series, check out here and here.


Biodiversity conservation has been on the international development agenda for at least a quarter century now. Yet, two decades after 192 nations met at the first “Earth Summit” in Rio de Janeiro to develop estimates of biodiversity conservation costs, we know surprisingly little about the allocation of international aid for biodiversity.  

Much of the earth’s biodiversity—the variety of all forms of life, from genes to species to ecosystems—is concentrated in less developed countries. Given the lack of resources in many of these countries, the international community has long recognized the importance of resource transfers from wealthier to poorer countries to mitigate increasingly rapid biodiversity loss. Discussion of how large these transfers should be and who should provide them dominated much of the recent Conference of the Parties (COP 11) to the Convention on Biological Diversity (CBD) in Hyderabad, India.  Although recent studies (e.g. McCarthy et al.) provide estimates of the financial costs of reaching global conservation targets, knowledge of actual expenditures for this purpose remains very limited. Thus, international negotiations have occurred in the absence of reliable, global-scale information on the amount of aid flows for conservation and how well these flows have been targeted.   

My co-authors, Arun Agrawal (University of Michigan), AidData co-founder Timmons Roberts (Brown University), and I address this important gap in a forthcoming article in Conservation Letters. We use AidData to present a comprehensive assessment of official development assistance for biodiversity from 1980–2008. We found that biodiversity aid has fallen short of donor commitments, but is relatively well-targeted toward areas of biodiversity need and good governance.  

The good news is that biodiversity aid has increased markedly since 1980 (Figure 1). Like other types of aid, biodiversity-related assistance exhibits substantial inter-annual fluctuations, but a five-year moving average reveals an overall upward trend. We found that biodiversity aid averaged about $200 million annually in the 1980s, increasing dramatically in the early 1990s following the creation of the Global Environment Facility (GEF) in 1991 and pledges made at the 1992 Rio Summit. Since 2002, biodiversity aid has shifted to a new average of $1.1 billion annually, a nearly five-fold increase from the 1980s.

Figure 1. Temporal trends in biodiversity aid, 1980-2008

More than 50 bilateral and multilateral aid agencies have provided biodiversity aid to 171 countries and territories since 1980 (Figure 2). The top five recipients include: India, Brazil, China, Mexico, and Indonesia. That the World Bank and the Global Environment Facility provided upwards of 60% of all aid during the study period underscores their importance in this policy arena. The top bilateral donors were the United States, the Netherlands, and Germany.

Despite the overall trend of increasing aid since 1980, however, funding falls well short of the amounts promised in Rio. We find that donor nations have not met their Rio commitment of at least $2 billion annually for biodiversity conservation in any year since the original conference in 1992. The total amount given ($18.5 billion) is less than 60% of the Rio promise ($32 billion in constant 2000 US$).

Figure 2.  Geographic distribution of biodiversity aid allocation to recipient countries. Recipient countries are divided into quintiles based on total aid received during 1980–2008, with the lightest shade of green indicating the bottom 20% and the darkest shade indicating the top 20% of recipient countries. Countries in grey received no biodiversity aid during the study period.


Even though biodiversity aid has not reached promised amounts, the aid that has been distributed appears to be reaching the “right” countries—those with greater conservation needs and better governance.

Drawing insights from previous studies of aid allocation, we tested whether key factors like the number of threatened species, geographic size, population, economic status, or governance in 137 countries were associated with the amount of biodiversity aid they received. Aid flows were strongly associated with national numbers of threatened species. This finding was robust for different measures of biodiversity need such as species richness and number of endemic species. We also found that better recipient governance, as indicated using the Worldwide Governance Indicators, was positively and strongly associated with the allocation of biodiversity aid. Government effectiveness and regulatory quality were especially strongly correlated with biodiversity aid.

The data, methods and findings we present in this article hold particular relevance for national and global conservation policy. Our study provides a baseline against which future aid flows can be compared. The method we developed to identify biodiversity-relevant aid can also be used as an independent, consistent means to track progress toward biodiversity financing goals. Indeed, we are now working with the Biodiversity Indicators Partnership to use AidData and our method for this purpose in the context of the Convention on Biological Diversity target on resource mobilization by 2020.

The bottom line is that biodiversity aid appears to be well targeted, but that flows are insufficient to meet conservation needs in developing countries. Recent levels of biodiversity aid are well below both previous donor promises ($2 billion/year) and estimates of current needs (more than $75 billion/year). Negotiators at the CBD meeting in Hyderabad eventually agreed an extra $10 billion US per year to support conservation in developing countries. We now have a better knowledge of the gap between current expenditures, this commitment, and estimated funding needs. Moving forward, research is needed to track progress toward filling this gap and to assess the effectiveness of existing biodiversity aid in meeting conservation objectives.  




This guest post was written by Daniel C. Miller, an AidData research associate and Ph.D. candidate in the School of Natural Resources and Environment at the University of Michigan.



Friday, November 9, 2012


Announcing the AidData Center for Development Policy
















AidData is proud to announce the launch of the AidData Center for Development Policy and initial five-year, $25-million funding from the United States Agency for International Development (USAID).

The AidData Center for Development Policy is a joint venture between the College of William and Mary, Development Gateway, Brigham Young University, the University of Texas at Austin, and Esri to increase global aid transparency. The AidData Center for Development Policy will create geospatial data and tools that enable USAID and the broader global development community to more effectively target, coordinate, deliver, and evaluate the impact of aid.

The award from USAID is the largest ever received by AidData, a partnership between the College of William and Mary, Development Gateway, and Brigham Young University that provides the largest public access database on project-level development finance in the world.

The new AidData Center for Development Policy will be headquartered at the College of William and Mary in Williamsburg, Virginia, and support an innovation lab at OpenGov Hub, the collaborative workspace and Development Gateway headquarters in Washington, DC.

Brad Parks, AidData's Co-Executive Director at William & Mary, believes that the creation of the AidData Center for Development Policy will “fundamentally change the way that foreign assistance is targeted, coordinated, monitored, and evaluated.”

“The Center will build a global network of geographers, economists, political scientists, computer scientists, and statisticians who are committed to helping USAID and other development agencies reduce the cost and increase the impact of their aid programs,” Parks said.

Stephen Davenport, AidData's Co-Executive Director from Development Gateway, says, "The AidData Center for Development Policy will have an impact well beyond traditional donor boundaries. The data, visual analytics, and research produced by the The AidData Center for Development Policy will level the playing field among donors, recipient governments, and citizens by providing access to actionable aid information.”

The AidData Center for Development Policy is part of USAID’s Higher Education Solutions Network (HESN)—a groundbreaking partnership with seven leading American and foreign universities will develop innovative solutions to global development challenges.

“The Higher Education Solutions Network is the latest step in USAID's efforts to harness the best ideas from the academic and scientific community and young people worldwide to foster transformational progress in development,” explained USAID Administrator Rajiv Shah. “By collaborating with top universities around the world, we hope to tap today’s brightest minds and focus ingenuity on global development challenges.”


To learn more about this program, please go to the AidData Center for Development Policy homepage.