Trends and challenges in aid allocation
This chapter explores changes over time and differences across donors and recipients in the aid allocation landscape. The reasons driving aid allocation have shifted from the early days of aid as a geopolitical tool during the Cold War to an important foreign policy lever meant to mitigate unwanted impacts on donor states. The last decade has seen a continuing rise of China as a formidable influence in low- and middle-income countries and an uncertain response from other donors. States continue to grapple with the role of aid for global public goods (such as climate change mitigation or pandemic prevention) and the role of bilateral versus multilateral donors in these areas. This chapter provides an overview of the evidence on donor motivations for giving aid, the evolution of these trends, and some insights for current and future aid scholars and practitioners on the motivations behind aid giving.
