During Ass. Prof Melati's third topic, the distribution of government aid, was discussed, highlighting the shortcomings in reaching those who needed it the most. It was observed that aid distribution was inadequate and plagued by institutionalised corruption. The principle-agent model explains how corruption occurs when an agent, in this case, government officials, colludes with third parties to benefit themselves, disregarding the needs of the people they are meant to serve.

Rent-seeking was identified as a process where individuals seek to increase their wealth without creating wealth for the general population. This was illustrated with an example of people fencing off a lake and charging others for access, depriving them of a resource that was once freely available. Elite capture, another form of corruption, occurs when public resources are monopolised by a select few, such as social elites, politicians, NGOs, and powerful individuals with access to resources.

The talk highlighted the issue of aid not reaching single-mother households. Despite being intended for the vulnerable, aid often fails to reach them in the required amount. The use of proxy agencies in aid distribution was identified as problematic, as it can misappropriate resources and hinder the system's ability to protect and support those in need. This results in a situation where the privileged few at the top receive more benefits while the aid fails to reach the ground level where it is most needed.

The speaker shared experiences from conversations with NGO members, revealing the challenges people face in reaching their goals due to bureaucratic obstacles and intermediaries. The system meant to provide support can, at times, inadvertently harm those it is intended to help. The analogy of rainfall was used to emphasise that the amount of aid reaching the ground, where it is needed, is often less than what is received by those in positions of power and influence.

In conclusion, the talk shed light on the deficiencies and corruption in the distribution of government aid. The principle-agent model explains how corruption occurs when officials prioritise personal gain over serving the public. Rent-seeking and elite capture were identified as corruption contributing to the unequal distribution of resources. The failure of aid to reach the most vulnerable, such as single-mother households, was highlighted as a concerning issue. The need for a more efficient and transparent aid distribution system was emphasised to ensure that support reaches those who need it most, particularly during times of crisis.