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Giving and Receiving Foreign Aid: Does Conflict Count?

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  • Balla, Eliana
  • Reinhardt, Gina Yannitell

Abstract

Summary Of what relative importance are strategic motivators for bilateral aid donors, and how important is a recipient's geographic proximity to conflict relative to previously examined economic and political motivators? We find that donors have historically responded to balanced incentives to reduce recipient poverty and further donor political and economic goals. Every bilateral donor conditions aid on conflict. The United States allocates large amounts of development aid to countries bordering a conflict, both pre- and post-Cold War. However, controlling for development levels and donor economic and political interest, most donors reduce aid to a recipient with an in-house or nearby intense conflict.

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  • Balla, Eliana & Reinhardt, Gina Yannitell, 2008. "Giving and Receiving Foreign Aid: Does Conflict Count?," World Development, Elsevier, vol. 36(12), pages 2566-2585, December.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:12:p:2566-2585
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    Cited by:

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    3. De Jong, Joop T.V.M., 2010. "A public health framework to translate risk factors related to political violence and war into multi-level preventive interventions," Social Science & Medicine, Elsevier, vol. 70(1), pages 71-79, January.
    4. Khusrav Gaibulloev & Todd Sandler, 2012. "Aid for AIDS in Africa," Empirical Economics, Springer, vol. 43(3), pages 1171-1197, December.
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    6. Subhayu Bandyopadhyay & E. Katarina Vermann, 2013. "Donor motives for foreign aid," Review, Federal Reserve Bank of St. Louis, vol. 95(July), pages 327-336.
    7. Stijn van Weezel, 2017. "The Effect of Civil War Violence on Aid Allocations in Uganda," Working Papers 201725, School of Economics, University College Dublin.
    8. Dimant, Eugen & Krieger, Tim & Meierrieks, Daniel, 2023. "Paying them to hate US: The effect of U.S. military aid on anti-American terrorism, 1968-2018," Discussion Paper Series 2023-02, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    9. Lebovic, James H., 2014. "The Millennium Challenge Corporation: Organizational Constraints on US Foreign Aid, 2004–11," World Development, Elsevier, vol. 58(C), pages 116-129.
    10. Lis, Piotr, 2018. "The impact of armed conflict and terrorism on foreign aid: A sector-level analysis," World Development, Elsevier, vol. 110(C), pages 283-294.
    11. Julian Donaubauer & Dierk Herzer & Peter Nunnenkamp, 2019. "The Effectiveness of Aid under Post-Conflict Conditions: A Sector-Specific Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(4), pages 720-736, April.
    12. Gaibulloev, Khusrav & Younas, Javed, 2018. "Untying the motives of giving grants vs. loans," European Journal of Political Economy, Elsevier, vol. 51(C), pages 1-14.
    13. Paul Bezerra & Alex Braithwaite, 2016. "Locating foreign aid commitments in response to political violence," Public Choice, Springer, vol. 169(3), pages 333-355, December.
    14. Trude Midtgaard & Krishna Vadlamannati & Indra Soysa, 2014. "Does the IMF cause civil war? A comment," The Review of International Organizations, Springer, vol. 9(1), pages 107-124, March.
    15. Zhang, Liyunpeng & Zhuang, Yuhang & Ding, Yibing & Liu, Ziwei, 2023. "Infrastructure and poverty reduction: Assessing the dynamic impact of Chinese infrastructure investment in sub-Saharan Africa," Journal of Asian Economics, Elsevier, vol. 84(C).
    16. Yu Wang, 2013. "Veto Players and Foreign Aid Inflows," Oxford Development Studies, Taylor & Francis Journals, vol. 41(3), pages 391-408, September.
    17. Michael E. Flynn, 2020. "Before the dominos fall: Regional conflict, donor interests, and US foreign aid," Conflict Management and Peace Science, Peace Science Society (International), vol. 37(1), pages 39-57, January.
    18. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    19. Jessica Maves Braithwaite & Amanda Abigail Licht, 2020. "The Effect of Civil Society Organizations and Democratization Aid on Civil War Onset," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(6), pages 1095-1120, July.
    20. Johannes Karreth & Jason Quinn & Madhav Joshi & Jaroslav Tir, 2023. "International Third Parties and the Implementation of Comprehensive Peace Agreements After Civil War," Journal of Conflict Resolution, Peace Science Society (International), vol. 67(2-3), pages 494-521, February.
    21. Garriga, Ana Carolina & Phillips, Brian John, 2014. "Foreign Aid as a Signal to Investors: Predicting FDI in Post-Conflict Countries," MPRA Paper 88643, University Library of Munich, Germany.
    22. Hicks, Daniel L. & Hicks, Joan Hamory & Maldonado, Beatriz, 2016. "Women as policy makers and donors: Female legislators and foreign aid," European Journal of Political Economy, Elsevier, vol. 41(C), pages 46-60.
    23. Raphael J. Nawrotzki & Verena Gantner & Jana Balzer & Thomas Wencker & Sabine Brüntrup-Seidemann, 2022. "Strategic Allocation of Development Projects in Post-Conflict Regions: A Gender Perspective for Colombia," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    24. Gina Yannitell Reinhardt & Carmela Lutmar, 2022. "Disaster diplomacy: The intricate links between disaster and conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 59(1), pages 3-11, January.

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