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Individual and country-level factors affecting support for foreign aid

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Author Info
Paxton, Pamela
Knack, Stephen

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Abstract

In recent years donor countries have committed to dramatic increases in the supply of foreign aid to developing countries. Meeting and sustaining such commitments will require sufficient support among donor country voters and taxpayers. The determinants of public opinion in donor countries on foreign aid have received little attention. This paper examines attitudes to foreign aid with a large, multi-level, cross-national study. It outlines a theoretical rationale for support for foreign aid, discussing the importance of both individual factors and economic and social structures. The theory is tested with multi-level models, including both individual-level and country-level variables to predict positive attitudes. Two datasets are used to measure attitudes in donor countries: (1) the 1995 World Values Survey has information from approximately 6,000 individuals in nine countries and asks a rich battery of questions at the individual-level, and (2) the 2002 Gallup"Voice of the People"survey asks fewer questions of individuals but includes 17 donor countries. Using both surveys combines theirdistinct strengths and allows tests of individual and national-level theories across disparate samples. The results generally support the predictions that attitudes toward aid are influenced by religiosity, beliefs about the causes of poverty, awareness of international affairs, and trust in people and institutions.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4714.

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Date of creation: 01 Sep 2008
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Handle: RePEc:wbk:wbrwps:4714

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Keywords: Post Conflict Reconstruction; Gender and Health; Development Economics&Aid Effectiveness; Foreign Aid; Disability;

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  1. Hatzipanayotou, Panos & Michael, Michael S., 1995. "Foreign aid and public goods," Journal of Development Economics, Elsevier, vol. 47(2), pages 455-467, August. [Downloadable!] (restricted)
  2. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA. [Downloadable!]
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  3. Mosley, Paul, 1985. "The Political Economy of Foreign Aid: A Model of the Market for a Public Good," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 373-93, January.
  4. Craig Burnside & David Dollar, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September. [Downloadable!] (restricted)
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  5. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-38, May. [Downloadable!] (restricted)
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  6. Fisman, Raymond & Khanna, Tarun, 1999. "Is trust a historical residue? Information flows and trust levels," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 79-92, January. [Downloadable!] (restricted)
  7. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August. [Downloadable!] (restricted)
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  8. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March. [Downloadable!] (restricted)
  9. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2003. "People's opium? Religion and economic attitudes," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 225-282, January. [Downloadable!] (restricted)
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  10. Alberto Chong & Mark Gradstein, 2006. "Who's Afraid of Foreign Aid? The Donors' Perspective," RES Working Papers 4452, Inter-American Development Bank, Research Department. [Downloadable!]
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  11. David Roodman & Scott Standley, 2006. "Tax policies to promote private charitable giving in DAC countries," Working Papers 82, Center for Global Development. [Downloadable!]
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