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CANCELLED: 3ie-LIDC Seminar Series: What works in international development? 'Aid Allocation and Impact in Rural China: Evidence from the Sichuan Earthquake'

Wednesday, April 20, 2011 - 17:00

Unfortunately, this event has been cancelled.  We apologise for any inconvenience and we hope that you will join future seminars in the series.



Aid Allocation and Impact in Rural China: Evidence from the Sichuan Earthquake


Speaker: Dr Paul Nolen, University of Essex

Time: 17:00-18:30

Venue: LIDC, 36 Gordon Square


Over 70,000 people were killed and more than 18,000 are still considered missing during the 2008 earthquake in China. This paper will evaluate how a specific programme implemented in response to the earthquake affected the ability of rural households in Mianzhu –one of the hardest hit areas- to return to pre-earthquake levels of employment, consumption, schooling, and income, among others indicators. The paper will also examine what infrastructure in place before the earthquake allowed households to better recover.

The earthquake destroyed most homes in the area. The government responded by providing grants and loans for families to rebuild their houses. Before the earthquake few people had bank accounts, let alone access to loans. Using pre and post-earthquake survey data, we examine how increased access to bank loans and the amount of subsidies impact a household`s ability to recover. Is a household more likely to return to pre-earthquake levels of income, expenditure or employment if most of the aid is a grant or a loan? Does access to loans allow a household to invest more or take more risk such as spending money on children`s education or taking time to seek a job off-farm? The answers to these offer guidance on how best to provide aid after future large-scale natural disasters.

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