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Aid, natural disasters and the samaritan's dilemma

Source(s):  Global Facility for Disaster Reduction and Recovery, the (GFDRR)
World Bank, the (WB)

Policy research working paper 4952:

This paper discusses the impact of foreign aid on the recipient country's preparedness against 'natural' disasters. The theoretical model shows that foreign aid can have two opposing effects on a country's level of mitigating activities. In order to test the theoretical propositions, the authors analyze the effect of foreign aid dependence on ex-ante risk-management activity proxied by the death toll from major storms, floods and earthquakes occurring worldwide between 1980 and 2002. They find evidence that the crowding-out effect of foreign aid outweighs the preventive effect in the case of storms, while there is mixed evidence in the case of floods and earthquakes.

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  • Aid, natural disasters and the samaritan's dilemma
  • Publication date 2009
  • Author(s) Raschky, Paul A.; Schwindt, Manijeh
  • Number of pages 41 p.

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