A ripple in development? - Channel Research
A ripple in development? - Channel Research
A ripple in development? - Channel Research
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<strong>in</strong>come by carry<strong>in</strong>g out petty trad<strong>in</strong>g. Graphically a predictable pattern<br />
of <strong>in</strong>come and consumption can be represented as:<br />
Figure 2<br />
Rate of Income<br />
Generated from Livelihoods<br />
A Fixed Period for Income<br />
Generat<strong>in</strong>g (e.g. harvest<strong>in</strong>g)<br />
or Full Consumption<br />
(e.g. Idul Fitri <strong>in</strong> Indonesia)<br />
Time<br />
Income Generation <strong>in</strong> a Given<br />
Time Period<br />
Draw<strong>in</strong>g Down for Consumption<br />
In figure 2 above, <strong>in</strong>come can be generated from any number of activities<br />
and <strong>in</strong>come can be drawn from sav<strong>in</strong>gs or deferred spend<strong>in</strong>g. The<br />
positive rate of change for <strong>in</strong>come generation matches the negative rate<br />
of change for consumption where a given household welfare level is<br />
then achieved. Time <strong>in</strong> the x-axis represents any given period as def<strong>in</strong>ed<br />
by the household.<br />
Analysis<br />
To either establish correlations, causality or attribution between donor<br />
relief efforts and household livelihoods and hence broader recovery,<br />
first an analysis of the distribution of foreign aid by geographical areas<br />
was carried out. This analysis <strong>in</strong>cludes where aid was first <strong>in</strong>troduced<br />
and where it was gradually <strong>in</strong>troduced.<br />
The specific sector of foreign aid most closely related to livelihoods<br />
and economic recovery is economic <strong>development</strong> (or reconstruction<br />
aid). This is as def<strong>in</strong>ed by government f<strong>in</strong>ancial report<strong>in</strong>g of donor aid<br />
(there is no officially recorded budget l<strong>in</strong>e known as livelihoods). If a<br />
given geographical area such as a district received a higher amount of<br />
aid than another district, the logical reason<strong>in</strong>g is that the households <strong>in</strong><br />
the first district would have greater resources available to rebuild their<br />
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