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Who to Help?

Who to Help?. Molly Morales Grace Fenton. Question. How do philanthropists decide which countries to help? Bill and Melinda Gates Foundation (BMGF) is the largest private grant-making foundation How does the BMGF chose which African countries to allocate grants to?. Literature.

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Who to Help?

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  1. Who to Help? Molly Morales Grace Fenton

  2. Question • How do philanthropists decide which countries to help? • Bill and Melinda Gates Foundation (BMGF) is the largest private grant-making foundation • How does the BMGF chose which African countries to allocate grants to?

  3. Literature • World Bank and IMF avoid democracies (Kanbur, 2000) • “Rather than demonstrating a positive relationship between foreign aid and recipient social-welfare factors, our findings discounted the role of humanitarian need in the aid policies of these industrialized democracies” (Schraeder et al., 1998)

  4. Literature • “Countries which have democratized have received a ‘surge’ of foreign aid, immediately afterwards” (Alesina, 1998) • “Grant making by the Gates Foundation seems to be largely managed through an informal system of personal networks and relationships rather than by a more transparent process based on independent and technical peer review” (McCoy 2009)

  5. The Foundation • Assets exceeding $37 billion • In 2011, $3.4 billion was granted • “All lives have equal value” • Goal is health care equality

  6. Our Goal • Does regime type have an affect on if the country gets aid? • We associate equality with democracy • Hypothesis: Democracies get more aid than non democracies • Test this hypothesis and conduct case studies

  7. The Data Aid Given to Democratic Countries • Democracies receive 24% more aid than non democracies

  8. The Data Controlling for GDP per capita (Constant 2000 USD) • When controlling for GDP, the results were not statistically significant

  9. Analysis • “Philanthrocapitalist” • Investment policies discredit • Ebocha, Nigeria • “The Gates Foundation is not a passive donor. The foundation actively engages in policy making and agenda setting activities” (McCoy, 2009)

  10. South Africa • 2009- $3.18 Gates Aid (2010 USD Millions) • GDP Per Capita (Constant 2000 USD): • 2009- $3,697.67 • 2010- $3,753.45 • 2011- $3,825.09 • Democratic • TB • Bilateral Relations with US • Pivotal State • “Good Governance”

  11. Burundi • No Aid • Low GDP Per Capita (Constant 2000 USD): • 2009- $136.66 • 2010- $138.25 • 2011- $140.81 • AIDS, TB • Non-democratic • Human Rights Violations

  12. Future work • Examine the trends in relation to the US’ foreign aid policies • Relation of the outbreak of diseases in the country • Look further into humans’ rights violations

  13. Conclusion Question: Are democracies more likely to receive aid from the Gates Foundation than non-democratic countries? Findings: The Gates Foundation donates more to democratic countries than non-democratic ones. • More tests are needed Political factors play a significant role

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