Does Foreign Development Aid Trigger Ethnic War in Developing States?

2020 ◽  
pp. 0095327X2090218
Author(s):  
Demet Yalcin Mousseau
Keyword(s):  
Foreign Aid ◽  
Civil Wars ◽  
Strong Association ◽  
Development Aid ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Time Series Dataset ◽  
Ethnic Wars ◽  
Ethnic War ◽  
Cross National

Can foreign aid trigger ethnic war? The quantitative conflict literature has produced mixed findings on the effect of foreign aid on civil war in developing states. One reason for the mixed results is that a subset of civil wars, ethnic wars, are more likely than other kinds of civil wars to be triggered by foreign aid. This is because large amounts of foreign aid can cause the state to become a prize worth fighting over, mobilizing ethnic identity and group-related rebellion. This article investigates this question by testing the separate impacts of total, bilateral, and multilateral aid given by state and nonstate actors on the onset of ethnic war, using a cross-national time-series dataset of 147 countries from 1961 to 2008. The findings show a very strong association of foreign aid with ethnic war, whether measured as total aid, bilateral aid, or multilateral aid.

scholarly journals Can One Promote a Delegation of the Bilateral Aid to Multilateral Donors to Improve Foreign Aid Effect on Economic Growth in ECOWAS (Note 1) Countries?

2019 ◽  
Vol 2 (1) ◽  
pp. 51
Author(s):  
W. Jean Marie Kébré
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Least Squares ◽  
Foreign Aid ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Multilateral Institutions ◽  
Negative Effect ◽  
High Degree ◽  
The Relationship

<p><em>This article analyzes the relationship between external aid and economic growth in the ECOWAS region, with a focus on bilateral and multilateral aid effects. The key idea behind this analysis is an argument of Svensson</em><em> </em><em>(2000)</em><em> that multilateral aid is more effective than bilateral aid because of the high degree of altruism of bilateral donors. He therefore suggested a delegation of bilateral aid to multilateral institutions. To appreciate his suggestion, this analysis used panel data from the 16 ECOWAS countries from the period 1984 to 2014. The results of the estimates, based on the dynamic least squares estimator (DOLS), show a negative effect of foreign aid on economic growth. This negative effect on economic growth persists when the components of aid are introduced into the model. In addition, results highlight that governance is a channel through which foreign aid affect positively economic growth. In these conditions, bilateral aid is more effective on economic growth than multilateral aid. These results about foreign aid received by ECOWAS countries invalidates</em><em> </em><em>Svensson’s</em><em> </em><em>(</em><a title="Svensson, 2000 #5" href="#_ENREF_1"><em>2000</em></a><em>)</em><em> theory. Therefore, a delegation of bilateral aid to multilateral institutions is not relevant because bilateral aid contributes more to economic growth if governance is taken into account.</em></p>

scholarly journals Foreign Aid Movements in Nepal

2021 ◽  
pp. 142-161
Author(s):  
Anjay Kumar Mishra ◽  
P. S. Aithal
Keyword(s):  
Foreign Aid ◽  
Poverty Reduction ◽  
Policy Research ◽  
Secondary Data ◽  
Living Standard ◽  
Bilateral Aid ◽  
Foreign Loan ◽  
Debt Burden ◽  
Multilateral Aid ◽  
Development Expenditure

Purpose: Development needs fund and foreign aid is one of the majour source of fund for developing countries. The Paper aims to analyse the trends and composition of foreign aids with case reference to the Swiss aid. Design/Methodology/Approach: The study is based on secondary data from 2001/02 to 2014/15.Descriptive statistics has been applied to develop the trends and compositions. Findings/Result: In FY 2014/15, the total foreign aid commitment increased by totaling to Rs.1195.5 million as compared to Rs.2125.9 million in FY 2014/15. Of the total commitment in FY 2014/15 the contribution of bilateral aid was totaling and multilateral aid contributed. While categorizing the total foreign aid the share of grant assistance constituted and loan assistance million. In FY 2014/15 the foreign grant assistant subsequently increased by whereas foreign loan assistance decreased. The bilateral aid disbursement was out of total bilateral aid commitment. Multilateral aid disbursement was 56 percent. The amount of loan is increasing in the economy. This condition also indicates that in future debt burden in budgetary system is directly reducing the development expenditure which decreases the flow of budget in poverty reduction sectors. In amount Swiss aid is much less but is efficiency is widespread in increasing people's living standard. Due to 100% grant Swiss aid doesn't create fiscal burden in the economy. Originality/Value: it is an empirical research to signify the urgency of increasing Swiss aid and Swiss project in Nepal for sustained and broad-based economic development. Paper Type: Analytical Policy Research

scholarly journals Terrorism, Armed Conflict and Foreign Aid

2014 ◽  
Vol 20 (4) ◽  
pp. 655-667 ◽  
Author(s):  
Piotr Lis
Keyword(s):  
Foreign Aid ◽  
Armed Conflict ◽  
Detrimental Effect ◽  
Physical Capital ◽  
Foreign Assistance ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Muslim Countries ◽  
Negative Effect ◽  
The One

AbstractArmed conflict, and to a lesser extent terrorism, have detrimental effect on economic and social development through destruction of human and physical capital and ensuing disruption to economic activity. There is also likely to be an indirect effect of political instability through its impact on foreign aid. The net effect is not obvious; violence may discourage aid donors and hence lead to a fall in received aid on the one hand, but it may well lead to an increase in foreign aid as donors offer reimbursement for counterterrorism efforts on the other hand. This paper uses a panel of countries to identify the net effect of armed conflict and terrorism, both domestic and international, on aid receipts. It shows that armed conflict has a negative effect on the amounts of both bilateral and multilateral aid. It also finds that terrorism tends to increase foreign assistance. The effect is stronger for bilateral aid; this is consistent with the expectation that they are likely to use foreign aid to directly or indirectly assist governments fighting terrorism. Nonetheless, these results do not hold for Muslim countries which do not receive increased aid when suffering from terrorism.

National attributes associated with multilateral and US bilateral aid to Latin America: 1960–1971

1978 ◽  
Vol 32 (2) ◽  
pp. 463-475 ◽  
Author(s):  
Edward Thomas Rowe
Keyword(s):  
Latin America ◽  
Foreign Aid ◽  
Latin American ◽  
The Political ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Per Capita ◽  
Latin American Countries

Proponents of multilateral aid have generally assumed that such aid is less responsive than bilateral aid to the political characteristics of recipient countries. Many critics of foreign aid have challenged this assumption, arguing that US influence ensures that multilateral programs serve the same interventionist purposes as bilateral. This study of per capita aid allocations to Latin American countries confirms that there are strong similarities in the distribution of aid. However, when the relationships between aid data and data on national attributes are examined, the results do not support the notion that political characteristics account for the similarities. For some multilateral agencies, there is little or no association between aid and recipient political attributes. For others, there are associations with political features, but the associations are not identical with those of US bilateral aid. In short, whatever the determinants behind decisions on the allocation of bilateral and multilateral aid, the same considerations with regard to the politics of potential recipients do not appear to be operating. All of this does not mean that US interests are not being served by multilateral programs. They may be served in a variety of ways, and still be consistent with the results reported here. That important issue is beyond the scope of this very limited study.

scholarly journals Armed conflict, terrorism, and the allocation of foreign aid

2013 ◽  
Vol 8 (1) ◽  
Author(s):  
Piotr Lis
Keyword(s):  
Foreign Aid ◽  
Armed Conflict ◽  
Donor Country ◽  
Domestic Terrorism ◽  
Transnational Terrorism ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Negative Effect ◽  
Using Data ◽  
The One

Armed conflict and terrorism damage economic development through disruption of economic activity, trade, and the destruction of human and physical resources. They also can affect foreign aid allocation, but the likely net effect of this is not obvious. On the one hand, donors may be discouraged and reduce aid. On the other hand, donors may provide more aid, for instance as a reimbursement for counter-terrorism efforts that benefit the donor country. This article aims to identify the net effect using data for a panel of countries. It finds that armed conflict does have a large and negative effect on bilateral and multilateral aid, but that bilateral donors seem to turn a blind eye to violence occurring in oil-exporting countries. Further, the article finds that while transnational terrorism tends to increase bilateral aid, bilateral donors seem indifferent to domestic terrorism. In contrast, multilateral aid is found not to react to transnational terrorism, but does react to domestic terrorism.

Bilateral Aid Allocation for International Development: Impact of the Financial Crisis

2018 ◽  
Vol 2018 (4) ◽  
pp. 100-121
Author(s):  
Elena Balter ◽  
Aleksandra Morozkina
Keyword(s):  
Financial Crisis ◽  
International Development ◽  
Low Income ◽  
Development Assistance ◽  
Development Aid ◽  
Low Income Countries ◽  
External Financing ◽  
Bilateral Aid ◽  
The Impact ◽  
Allocation Decisions

This article examines the impact of financial crisis of 2008-2009 on allocation of development aid. Using OECD data on Official Development Assistance (ODA) allocation for international development by key donor countries, authors test three hypotheses: first, general impact of crisis on ODA allocation; second, impact of crisis on three recipient income groups; third, impact of crisis on relative importance of analyzed factors for ODA allocation decisions. The results show that general impact of crisis on ODA volumes was negative, although donors preferred to increase aid to low-income countries. Impact of factors describing economic situation in donor countries (public debt level, government expenditures and donor growth) increased after crisis. Donor countries might make use of these results to increase efficiency of their development assistance strategies, whereas recipient countries may exploit these results in order to attract more external financing for development.

scholarly journals Sources of Economic Growth in Zambia: An Empirical Investigation

2017 ◽  
Vol 18 (2) ◽  
pp. 275-290 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
International Trade ◽  
Foreign Aid ◽  
Development Aid ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

scholarly journals Development Diplomacy: Learning from the Chinese Aid in Building A Road in Nepal

2019 ◽  
Vol 2 (1) ◽  
pp. 112-125
Author(s):  
Bhawana Regmi
Keyword(s):  
Foreign Aid ◽  
Development Aid ◽  
Foreign Assistance ◽  
Whole Process ◽  
Chinese Model ◽  
The People ◽  
High Investment ◽  
Developed Nations ◽  
Aid Policy

Infrastructures development is the backbone of a country's economy. The developing countries like Nepal have to rely upon foreign assistance for the constructions of its mega projects, which need high investment cost, technology, and capable human resources. On this scenario, China government had assisted Nepal in building the eight lanes wide and ten kilometers long Koteswor to Kalanki section of the ring road. This paper describes how local road beneficiaries in Nepal perceive the construction work based on the Chinese model and their understanding on foreign aid development. The paper is based on a qualitative study with an interpretative case study design. The study has revealed that though the development aid policy of the developed nations is useful to maintain the cordial relations with the other developing nations, but at the same time, the people-centered development should not be undermined under this whole process. The explorations of this research are useful in framing appropriate plans and policies for the governments to orient the foreign aid development as per the needs of a larger section of people.

scholarly journals On becoming a development cooperation partner: Kazakhstan’s foreign policy, identity, and international norms

2020 ◽  
Vol 11 (2) ◽  
pp. 158-173
Author(s):  
Insebayeva Nafissa
Keyword(s):  
Foreign Aid ◽  
International Development ◽  
Development Aid ◽  
Development Cooperation ◽  
The Other ◽  
Mutual Benefit ◽  
Hybrid Identity ◽  
Emerging Donors ◽  
Cooperation Partner ◽  
Core Features

This article joins the discussion on foreign aid triggered by the rise of multiplicity of emerging donors in international development. Informed by the constructivist framework of analysis, this article evaluates the philosophy and core features of Kazakhstan’s chosen development aid model and explains the factors that account for the construction of distinct aid patterns of Kazakh donorship. This article asserts that Kazakhstan embraces a hybrid identity as a foreign aid provider through combining features and characteristics pertaining to both—emerging and traditional donors. On one hand, it discursively constructed its identity as a “development cooperation partner,” adopting the relevant discourse of mutual benefit, respect for sovereignty, and non-interference, which places it among those providers that actively associate themselves with the community of “emerging donors.” On the other hand, it selectively complies with policies and practices advocated by traditional donors. This study suggests that a combination of domestic and international factors played an important role in shaping Kazakhstan’s understanding of the aid-giving practices, and subsequently determined its constructed aid modality.

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