Research

No Bang for Buck: Exploring the Heterogeneous Relationships Between Official Development Assistance and Intrastate Conflict Casualties

This thesis examines if and when Official Development Assistance (ODA) reduces intrastate conflict deaths in recipient countries, drawing on a dataset of 156 countries from 1989 to 2022. Two mathematical methods are used: Dynamic Panel GMM and a Causal Forest model.

The analysis finds that ODA, on average, does not reliably reduce conflict deaths. The strongest predictor of deaths in any year is the prior year’s deaths, reflecting a self-reinforcing “conflict trap” that no form of ODA consistently breaks. Beneath the ineffective averages, four conditions that shape ODA’s effects were found:

  1. Political stability matters most (below a threshold, effects turn harmful and unpredictable)
  2. Aid fragmentation into smaller projects reduces conflict risk by presenting less attractive targets for sabotage
  3. Multilateral channels outperform bilateral ones in fragile settings
  4. Inconsistent levels of conflict follow purpose-specific ODA.

Five policy implications follow:

  1. First, detailed local assessments should precede any disbursement, since country-level indicators alone cannot determine whether aid is safe to deliver.
  2. Second, political stability should be heavily considered in determining ODA allocation.
  3. Third, aid in fragile contexts should be channelled through multilateral institutions, which are more resilient to geopolitical perceptions and aid shocks.
  4. Fourth, prevention should be prioritised over de-escalation, since entrenched conflict rarely responds to aid.
  5. Fifth, these aggregate findings should inform, but never replace, context-specific, project-level analysis.

Link to the paper: No Bang for Buck | TU Delft Repository

Author: Emma Bokel, Data Scientist HCSS

This thesis was published on the TU Delft Repository

First supervisor: Yilin Huang, TU Delft

Chair and Second supervisor: Hans de Bruijn, TU Delft

Third supervisor: Jesse Kommandeur, Datalab Manager HCSS

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