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The Impact of Aid Budget Restructuring on Donor and NGO Strategies

Researcher :

• PI : Dr. Saut Sagala
  

Team Members :

• Justyna Green
• Ramanditya Wimbardana M.Sc

In view of the political changes, particularly the past 5 years or so, the amount of aid provided by some of the major donors such as AusAid, UKAid or USAid has diminished. This research project aims to explore how the aid is currently being allocated and what strategies both Donors and NGOs are employing in adapting to the new funding environment.

The 2017-2018 AusAid budget is reduced by A$220million, simultaneously there appear to be recent attempts to lower the US international profile alongside confusion in the post-Brexit UK and a lowering of the GBP value. This means that three of the major international Aid donors, will be lowering their previous contributions currently with an uncertain future. Whilst the contributions are being lowered, there seems to be a rise in large corporate consortiums who win bids for aid-related contracts, and who then often sub contract smaller NGOs to do more specialist work. This no doubt uses a fair portion of the available funds on middle-men. Thus questions remain as to how effective this new structure is in distributing and using its increasingly lower funds, and how the existing Aid organisations are adapting.

In summary there seems to be a new restructuring of the Aid environment. The purpose of this study is to ascertain whether aid money is being used in the most efficient manner, especially when funds are becoming tighter. It is anticipated that this study will provide aid agencies more insight into the new aid environment and potentially provide strategies and tools to adapt and survive.

Interviews:
UN-OCHA, UNDP, UNICEF, USAID, AHA-Center, World Bank, SOS Children, Oxfam GB, Micra Foundation

Last updated 27 June 2020