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Begin New Search Topic Foreign Aid Publication Year within 5 Years

1. Fragile States and Aid Allocation for Sub-Saharan African Countries: An Empirical Research

Author:
Zeynep Arıöz and Hacer Soykan Adaoğlu
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
State fragility has received increasing attention in recent decades as a result of the nexus between development and international stability. This study investigates the empirical drivers of state fragility in sub-Saharan Africa from 2007 to 2019. We shed light on the explanatory variables of government effectiveness, political stability, per-capita GDP, grow GDP%, International Monetary Fund loans, and official development assistance. Using panel data analysis and a 39-country sample, our study finds that government efficiency and political stability, in contrast to foreign aid, has a significant effect on reducing fragility in sub-Saharan Africa. In light of these findings, the article proposes delivering foreign aid in ways that strengthen state capacity.
Topic:
Foreign Aid, Econometrics, International Institutions, and Fragility
Political Geography:
Africa and Sub-Saharan Africa

2. The Mattei Plan for Africa: A Turning Point for Italy’s Development Cooperation Policy?

Author:
Daniele Fattibene
Publication Date:
03-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
At the end of January 2024, Italy hosted an Africa summit during which Prime Minister Giorgia Meloni outlined the vision and first projects of the so-called “Mattei Plan”, an ambitious project announced officially at the end of 2023[1] that aims to shape Italy’s strategy for Africa in the years to come.
Topic:
Foreign Policy, International Cooperation, and Foreign Aid
Political Geography:
Africa, Europe, and Italy

3. The Ukraine Support Tracker: Which countries help Ukraine and how?

Author:
Christoph Trebesch, Ariana Antezza, Katelyn Bushnell, Andre Frank, and Pascal Frank
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper presents the Ukraine Support Tracker, which lists and quantifies military, financial and humanitarian aid to Ukraine in the context of the Russia-Ukraine war. Since the third update we track support by 41 countries, specifically the EU member states, other members of the G7, as well as Australia, South Korea, Turkey, Norway, New Zealand, Switzerland, China, Taiwan, India and Iceland. The database is intended to support a facts-based discussion about support by other countries to Ukraine. Private donations and aid through non-governmental organizations are not included due to a lack of systematic data. To value in-kind support like military equipment or weapons, we rely on government statements as well as own calculations using market prices. We find significant differences in the scale of support across countries, both in absolute terms and as percent of donor country GDP.
Topic:
Economics, War, Foreign Aid, Military Aid, Geoeconomics, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, Germany, and United States of America

4. Coming to Grips with Poverty in Africa

Author:
Mark Wentling
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
Reducing poverty has been at the heart of U.S. foreign assistance in dozens of low-income countries for more than a half-century. Despite U.S. foreign policy objectives, much work, and hundreds of billions of assistance dollars expended, the poorest of the poor have not advanced. While some low-income countries have made some small progress, after decades of aid most are still in the bottom ranks of absolute poverty. All the countries in the Least Developed Country (LDC) category have more poor people than ever before. Thirty-seven of forty-seven of these LDC countries are in Africa. Although a handful of countries have graduated from LDC status, this disturbing ranking remains basically unchanged since the LDC list was established by the UN General Assembly in 1971. This unchanging list of extremely poor countries tells us that a better understanding of poverty is needed, especially in Africa, to make U.S assistance programs more effective. While Asian countries have made remarkable progress over the past 50 years in reducing the number of poor, the absolute number in sub-Saharan Africa (SSA) continues to grow. People in SSA are more than twice as likely to live in poverty than in South Asia, the next poorest region in the world. The World Bank reported there were 284 million Africans living in extreme poverty in 1990; this number had risen to 433 million in 2018 and continues to rise. The percentage of the population living in poverty in SSA is slowly decreasing, but this decline is overcome by population growth. The COVID-19 pandemic pushed tens of millions of people below the poverty line of $1.90 per day. Climate change, rising crime, inflation, and violent conflict are forcing many more millions below this line. Governments that are unable to provide basic services and struggle to cope with high levels of national debt compound the problem. The 2030 UN targets for eradicating poverty will not be met.
Topic:
Foreign Policy, Diplomacy, Poverty, Foreign Aid, and COVID-19
Political Geography:
Africa

5. Disaster Dynamics: Assessing Middle East Responses to the Turkey-Syria Earthquake and Other Destructive Events

Author:
Sarah Cahn and Erik Yavorsky
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The massive earthquake that killed more than 50,000 people in Turkey and Syria as of February 28—one of the worst Middle East natural disasters in recent memory—has touched the hearts of leaders and peoples across the world, triggering a flow of urgently needed humanitarian support. Regional states, too, have provided rescue and relief assistance. From the outset, however, politics has played an important role in shaping the scope and direction of such aid. In fact, the politics of humanitarian aid follows a pattern discernible based on previous regional responses to crises, including the 2020 Beirut port explosion and—before it—the 2014 Gaza war.
Topic:
Natural Disasters, Foreign Aid, and Earthquake
Political Geography:
Turkey, Middle East, and Syria

6. Egypt’s Economic Freefall Provides an Opening for U.S. Assistance—and Leverage

Author:
Ben Fishman
Publication Date:
01-2023
Content Type:
Commentary and Analysis
Institution:
The Washington Institute for Near East Policy
Abstract:
As Secretary of State Antony Blinken prepares to visit Cairo on January 29-30, Egypt’s economy has been busy plummeting to new lows. Part of the blame can be laid on the twin shocks of the COVID-19 pandemic and the Ukraine war, which disproportionately affected the country due to its heavy reliance on threatened resources such as wheat and tourism revenue from Russia and Ukraine. Yet the bulk of its struggles can be attributed to Cairo’s broad economic mismanagement under President Abdul Fattah al-Sisi, which has included everything from currency manipulation to misplaced spending priorities, wasteful megaprojects, and undue state and military control over the economy. Since March 2022, Egypt’s currency has lost half its value and now stands at 30 pounds to the U.S. dollar—a drop spurred by the flight of dollars and the IMF’s requirement to adopt a flexible exchange rate. As a result, official inflation reached nearly 22% in December, fifteen points higher than it was at the end of 2021. Shortages are now frequent, and prices for basic goods have soared by nearly 40%. The rising cost of essential bread in particular will be difficult to maintain much longer. Meanwhile, the debt-to-GDP ratio has risen to 95%, with a record $100 billion in loan payments due over the next four years. Egypt’s 2022-23 budget allocates over 50% to debt servicing and loan repayments, and this sky-high figure will only increase further over time because the loans are dollar-denominated.
Topic:
Foreign Policy, Human Rights, Foreign Aid, Reform, and Economy
Political Geography:
Middle East, North Africa, Egypt, and United States of America

7. To Deal or Not to Deal: How to Support Tunisia out of Its Predicament

Author:
Michaël Ayari and Riccardo Fabiani
Publication Date:
12-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Tunisia is beset by deepening political and economic challenges. President Kais Saied is transforming the country’s parliamentary system into an authoritarian presidential one that has become increasingly repressive. Arrests and convictions of opposition politicians have surged. Saied’s aggressive anti-foreigner discourse has fuelled xenophobic sentiment and contributed to a spike in violent attacks against sub-Saharan migrants. Economically, Tunisia is grappling with the fallout of a decade of sluggish growth compounded by a series of economic shocks since 2020. The nation’s public debt has soared, with significant debt repayments looming. As the country tries to deal with mounting financial constraints, its inability to attract foreign loans is further clouding its economic future. Saied now must decide whether to embrace a credit agreement with the International Monetary Fund (IMF) or potentially default on Tunisia’s foreign debt. Against this backdrop, the EU and, in particular, Italy have a pivotal role to play. They can either help steer Tunisia toward a more stable economic future or watch it descend into chaos.
Topic:
Economics, Foreign Aid, European Union, and IMF
Political Geography:
North Africa and Tunisia

8. Critical Crossroads: Tunisia’s Choice between a Comprehensive EU Partnership and Economic Collapse

Author:
Ghazi Ben Ahmed
Publication Date:
12-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
ince the International Monetary Fund (IMF) and the Tunisian authorities reached in October 2022 a staff-level agreement to support Tunisia’s economic policies, Tunisian President Kais Saied has been standing at the Rubicon. Lacking a vision to revive the Tunisian economy, President Saied has opted for a strategy of diversion and scapegoating. By blowing on the embers of xenophobia among his supporters and more recently by stoking the flames in the Middle East, he continues to deflect attention to conceal his economic short-sightedness and claims autonomy from foreign – mainly European – aid, in the name of sovereignty. This posture has now trapped him in his own rhetoric at a time when the Tunisian economy struggles without signs of recovery or resilience in a challenging regional and global landscape. Time is ticking, the situation remains grim, and the country may miss another opportunity to resume economic growth.
Topic:
Foreign Policy, Foreign Aid, European Union, Partnerships, and IMF
Political Geography:
Europe, Middle East, Italy, and Tunisia

9. Twelfth Annual N.T Wang Distinguished Lecture: China is Not a Donor

Author:
Deborah Bräutigam and Thomas J. Christensen
Publication Date:
02-2022
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
The nature of Chinese lending in risky countries remains poorly understood. Drawing on data on Chinese loans, creditors and contractors, and case studies of Chinese lending in Zambia, Kenya, Montenegro and Sri Lanka, this talk illustrates three areas in which misunderstandings create challenges. First, China is often portrayed as a monolithic, highly coordinated actor. Our research suggests instead that project finance from China can be highly fragmented, uncoordinated, and even chaotic. A second common fallacy is to assume all Chinese funding is “foreign aid” and then compare its terms or impact with funding offered by the World Bank, or bilateral donors. Our research suggests that Chinese foreign aid is a tiny fraction of all Chinese lending; the appropriate “apples to apples” comparisons will often be export credit agencies, private commercial banks, commodity traders, and even Eurobonds. Finally, some journalists, pundits and policymakers have promoted the idea that Chinese banks deliberately lend to risky countries to secure strategic assets. We question the evidence for “debt trap diplomacy” and suggest instead that China Eximbank suffers from “Tazara Syndrome” – a megaproject bias that can be traced back to the iconic African railway of the 1970s. This event is hosted by the Weatherhead East Asian Institute and the Jerome A. Chazen Institute for Global Business, and cosponsored by the China and the World Program at Columbia University.
Topic:
Debt, Diplomacy, Foreign Aid, Donors, and Loans
Political Geography:
China and Asia

10. Aid’s impact on democracy

Author:
Miguel Niño-Zarazúa, Ana Horigoshi, and Rachel M. Gisselquist
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the impact of foreign aid on democratic outcomes using a panel of countries for the period between 1995 and 2018. In so doing, it speaks to a major critique of foreign aid, which is that it negatively impacts democratic governance. The analysis distinguishes between developmental aid and democracy aid, and examines democracy aid to specific sectors, in order to explore variation across different aid types. It draws on the Organisation for Economic Co-operation and Development’s (OECD) Creditor Reporting System (CRS) data on foreign aid and indices of democracy from the Varieties of Democracy project, employing a combination of a maximum likelihood estimation and structural equation modelling (ML-SEM) model and fixed effects models. Overall, using a more extensive set of data and methods than previous analyses, we offer comprehensive evidence pointing to aid having a positive if modest impact on democratic outcomes. Our analysis suggests this effect is more significant for democracy aid than developmental aid, but there is no evidence of negative impact for either. These results are robust to multiple specifications.
Topic:
Development, Foreign Aid, and Democracy
Political Geography:
Global Focus

11. Deficiency and Elusion: Relations between Israel and Ukraine

Author:
Michał Wojnarowicz
Publication Date:
06-2022
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The outbreak of the war in Ukraine in 2014 broadened the political dimension of Israeli-Ukrainian relations. However, Israel’s cautious attitude towards Russia remains a burden for mutual relations with Ukraine. Since the renewed Russian aggression in February, Ukraine has diplomatically engaged Israel, but the limited nature of the latter’s support has led to criticism from Ukraine. The scale of the current assistance and pledged aid for the reconstruction of Ukraine, as well as Israel’s policy towards further tightening of sanctions against Russia, will be key to future relations.
Topic:
Diplomacy, Politics, Bilateral Relations, and Foreign Aid
Political Geography:
Europe, Ukraine, Middle East, and Israel

12. Lebanon after the Elections

Author:
Sara Nowacka
Publication Date:
06-2022
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
Although the parliamentary elections on 15 May did not bring a breakthrough in the Lebanese political scene, the weakening of the dominant parties may facilitate reforms necessary to obtain foreign financial aid. The positive results for candidates related to the 2019 anti-government protests will mean a greater emphasis on the fight against corruption among the political elite. To avoid further instability in Lebanon, the EU could step up its support for that state’s institutions, including the Lebanese army, popular amongst the public.
Topic:
Corruption, Politics, Foreign Aid, Elections, Protests, and Parliament
Political Geography:
Middle East and Lebanon

13. The Philippines-US Development Partnership

Author:
Diana J. Mendoza
Publication Date:
06-2022
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Dr. Diana J. Mendoza, Assistant professor of political science at the Ateneo de Manila University and director of the Ateneo Initiative for Southeast Asian Studies, explains how in the post-World War II era, US official development assistance (ODA) to the Philippines has undergone multiple shifts in emphasis in accordance with priorities determined by the US Congress.
Topic:
Development, History, Foreign Aid, and Partnerships
Political Geography:
Philippines, North America, Asia-Pacific, and United States of America

14. The New Global Context for Development: The Unravelling of Progress in the LDCs

Author:
J. Brian Atwood
Publication Date:
03-2022
Content Type:
Journal Article
Journal:
Brown Journal of World Affairs
Institution:
Brown Journal of World Affairs
Abstract:
Development professionals follow a few overriding admonitions. Two important ones are “do no harm” and “understand the local context.” A third traditional injunction has recently gained even more relevance: “Think globally and act locally.” Yet today, there is a growing need to “think globally and act globally.” Bilateral and multilateral donor agencies like USAID and the World Bank have appropriately focused their work at the national and subnational levels. Local ownership is still a valid principle of development. However, transna- tional issues and the global economic outlook are now overwhelming local development progress. Particularly in the Least Developed Countries (LDCs), climate-related disasters, the COVID-19 pandemic, and the consequences of the war in Ukraine are quickly erasing development gains and exposing global inequality even more dramatically.
Topic:
Development, Foreign Aid, Inequality, Economy, and USAID
Political Geography:
Global Focus

15. Can Aid Buy Foreign Public Support? Evidence from Chinese Development Finance

Author:
Lukas Wellner, Brad Parks, Axel Dreher, Andreas Fuchs, and Austin M. Strange
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Bilateral donors use foreign aid to pursue soft power. We test the effectiveness of aid in reaching this goal by leveraging a new dataset on the precise commitment, implementation, and completion dates of Chinese development projects. We use data from the Gallup World Poll for 126 countries over the 2006–2017 period and identify causal effects with (i) an event-study model that includes high-dimensional fixed effects, and (ii) instrumental-variables regressions that rely on exogenous variation in the supply of Chinese government financing over time. Our results are nuanced and depend on whether we focus on subnational jurisdictions, countries, or groupings of countries.
Topic:
Development, Bilateral Relations, Foreign Aid, and Influence
Political Geography:
China and Asia

16. Who Lends to Africa and How? Introducing the Africa Debt Database

Author:
David Mihalyi and Christoph Trebesch
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Africa’s sovereign debt markets are not well understood, partly due to a lack of data. This paper introduces the Africa Debt Database (ADD), the most granular and comprehensive dataset on external borrowing by African governments thus far. Our project moves beyond existing aggregate datasets and instead releases information on individual loans and bonds, in particular on the financial terms of each instrument. Taken together, we cover nearly 7000 loans and bonds between 2000 and 2020, with a total volume of 644 billion USD. Using this data, we study Africa’s record lending boom of the 2010s in detail. The debt boom was mainly driven by large sovereign bond issuances in London and New York, as well as growing lending by Chinese state-owned banks. The micro data also reveal a large variation in lending terms across countries, time, and creditors. Sovereign external bonds have interest rates of 6 percent, on average, Chinese banks charge 2-4 percent, and multilateral organizations just 1 percent. Strikingly, many governments in Africa simultaneously borrow large amounts from both private and official creditors, at vastly different rates. The large differences in debt servicing costs are indicative of a cross-creditor subsidy, as cheap concessional loans can be used to pay the high interest to private or Chinese creditors.
Topic:
Economics, Foreign Aid, Credit, and Influence
Political Geography:
Africa, China, and Asia

17. Exchanging Money for Love? A Regional Analysis of EU Cohesion Policy on Euroscepticism

Author:
Michael Bayerlein and Matthias Diermeier
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In the past, the European Union seems to have been able to tame Euroscepticism through regional 'convergence' funding. After the Eastern enlargement of the Union, however, this relationship needs to be put to the test. Not only have the new member states become the main recipients of EU funding, Eastern Europe has also changed from once being the most integration-friendly region to displaying the most integration-hostile attitudes in the EU. Motivated by this empirical puzzle, we revisit the relationship between structural 'convergence' funding and Euroscepticism and ask where - if at all - is the EU's convergence spending still able to tame Euroscepticism. Most surprisingly, correlation analyses reveal that between 2006 and 2018 larger regional subsidies go along with increasing opposition to EU integration. We can rebut this counterintuitive finding by a Diff-in-Diff approach that reveals an increasing Euroscepticism in Eastern European regions between 2006 and 2014. Nevertheless, also these more advanced models fail to establish a positive relationship between regional funding eligibility and pro-integrationist attitudes. Finally, fuzzy RDD models exploit the funding assignment rule and corroborate that the EU is no longer able to pacify integration-critical regions by their simply increasing 'convergence' funding. Nevertheless, the EU has won support in Eastern Europe where EU investments are perceived (positively). In designing a strategy to win back support for EU integration, Brussels does not need more fiscal capacity but rather has to design 'convergence' funding that is visible as well as clearly attributable to its donor.
Topic:
Economics, Regional Cooperation, Foreign Aid, European Union, and Eurocentrism
Political Geography:
Europe

18. Gulf States and Peacebuilding: Key Characteristics, Dynamics, and Opportunities

Author:
Sultan Barakat
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
While the Gulf States have long been generous providers of foreign aid, it is only in recent years that they have publicly committed to playing a major role as peacebuilders. This paper analyzes the current role and prospects of the Gulf States as actors in the field of peacebuilding.
Topic:
Conflict Prevention, Foreign Aid, Gulf Cooperation Council, and Peacebuilding
Political Geography:
Middle East and Gulf Nations

19. China’s Evolving Approach to Foreign Aid

Author:
Jingdong Yuan, Abhishek Andasu, and Xuwan Ouyang
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute
Abstract:
China’s role in foreign aid and, more broadly, in development cooperation on the global stage has grown significantly since it began seven decades ago. Particularly in recent years, through such platforms as the Belt and Road Initiative (BRI), China’s profile and engagement in global governance in foreign aid and related areas have been further enhanced. China’s ambition is to take a more proactive approach in foreign aid and move towards a model of international development cooperation by linking with the United Nations 2030 Agenda for Sustainable Development and by including the BRI as a major platform to achieve key development goals. This paper provides a timely analysis of the evolution of China’s foreign aid policy in the past seven decades with a particular focus on the developments since 2000. It discusses China’s development finance to Africa and the major sectors receiving Chinese aid. It also analyses recent trends of Chinese foreign aid and identifies some of the challenges that China faces as it becomes a major player in international development financing.
Topic:
Development, Foreign Aid, Infrastructure, Sustainable Development Goals, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

20. Piercing the Chinese Wall in Zrenjanin – Civic Activism VS. Linglong

Author:
Ivan Zivkov
Publication Date:
06-2022
Content Type:
Case Study
Institution:
Belgrade Centre for Security Policy
Abstract:
What are the problems when it comes to the construction of the Linglong factory in Zrenjanin and how did the activists try to improve that process through institutions? Find out in the case study written by Ivan Zivkov. The violation of many regulations, abuse of public powers, disregard for civil rights and extreme lenience of the national, provincial and local authorities to one investor make up the so-far experience with the Chinese Linglong company building an enormous tyre factory near Zrenjanin. The Prosecutor’s Office and the Administrative Court have ignored the criminal charges and applications related to the construction of that factory. The public in Serbia is deprived of the knowledge on how the operations of the tyre manufacturer will impact the environment, food produced in it, the nearby special reservation of “Carska bara” and the health of the people living there. Dissemination of information on these problems is made difficult because the pro-regime media ignore them or sweep them under the carpet. The monitoring of the Linglong company’s investment and its consequences on Zrenjanin and Serbia during the past three years is systematically conducted only by civic activists, with assistance of several associations and independent media.
Topic:
Foreign Aid, Regulation, Civic Engagement, and Activim
Political Geography:
Europe and Serbia