Foreign Aid Regimes = ?

1
Foreign AidRegimes ?

• Helen Brosnan
• ECONOMIC DEVELOPMENT AND INTERNATIONAL POLITICS
• INAF 100-14

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
2
What is the role of foreign Aid in Regime
Transition?

• How does aid effect democratization?
• What are the characteristics of the donor nation?
• What are the characteristics of the recipient
  nation?

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
3
Hypothesis

• More aid means an increase in the likelihood of
  democratic regime transition
• Often with an incentive
• Size of distributional coalition matters

Aid
Democracy
PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
4
Hypothesis The Counterargument

• Counterargument Foreign aid never actually
  reaches intended recipients
• i.e. poor people, democratic organizations/instit
  utions
• Argument Country is receiving aid for a reason
• Domestic government cannot support these
  people/institutions!

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
5
Hypothesis The Counterargument

• Counterargument Foreign aid can enshrine
  existing dictatorships
• Argument The source of funding matters
• If a country is simply donating to another
  country for political reasons not effective
• Democratic? democracy
• Corrupt? corruption

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
6
Is this really true?

• Joseph Wright, American Journal of Political
  Science
• The promise of higher aid if the country
  democratizes only provides an incentive for
  democratization for political leaders who expect
  to remain in office after democratization
  occurs.

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
7
Explanation

• Poor countries want aid
• Increases Utility
• Under Democracy AND Dictatorship
• Donors can reduce aid in the regime change if
  current dictator chooses not to democratize
• Provide incentive
• i.e. Burma and U.S. relations

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
8
Cheibub
PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION
9
What is the role of foreign Aid in Regime
Transition?

• Characteristics of donor/recipient
• Democratic nations? democracy
• Large coalitions
• Aid can increase or decrease
• Provide incentive

PROBLEM HYPOTHESIS LITERATURE
DATASETS CONCLUSION