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What Determines the Suspension of Budget Support?

Author

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  • Molenaers, N.
  • Gagiano, A.
  • Smets, L.
  • Dellepiane, S.

Abstract

Although Budget Support (BS) was not designed to push political reform in recipient countries, donors have nonetheless used it to sanction democratic regress. An econometric analysis of all BS suspensions by bilateral donors in the period 2000–11 finds that suspensions effectively do reflect downward tendencies in voice and accountability, and in level of democratic functioning. The larger the in-country BS donor group, the more suspensions. Interestingly, ideological alignment between donor and recipient and aid dependence decrease the likelihood for suspensions, while domestic donor economic growth increases it; and multilateral suspensions have the largest positive effect of all.

Suggested Citation

  • Molenaers, N. & Gagiano, A. & Smets, L. & Dellepiane, S., 2015. "What Determines the Suspension of Budget Support?," World Development, Elsevier, vol. 75(C), pages 62-73.
  • Handle: RePEc:eee:wdevel:v:75:y:2015:i:c:p:62-73
    DOI: 10.1016/j.worlddev.2014.09.025
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    References listed on IDEAS

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    Cited by:

    1. Molenaers, Nadia & Dellepiane, Sebastian & Faust, Jorg, 2015. "Political Conditionality and Foreign Aid," World Development, Elsevier, vol. 75(C), pages 2-12.
    2. Del Biondo, Karen, 2015. "Donor Interests or Developmental Performance? Explaining Sanctions in EU Democracy Promotion in sub-Saharan Africa," World Development, Elsevier, vol. 75(C), pages 74-84.
    3. Reinsberg, Bernhard, 2015. "Foreign Aid Responses to Political Liberalization," World Development, Elsevier, vol. 75(C), pages 46-61.
    4. de Felice, Damiano, 2015. "Diverging Visions on Political Conditionality: The Role of Domestic Politics and International Socialization in French and British Aid," World Development, Elsevier, vol. 75(C), pages 26-45.

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