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Assessing the Impact of China’s Aid on the World Bank Conditionality

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  • Shazmeen Maroof

    (Department of Economics, University of Strathclyde)

Abstract

This study aims to investigate whether the stringency of conditions attached to the World Bank aid projects are influenced by the additional supply of aid from China. The World Bank’s conditionality has been disaggregated into prior actions and benchmarks. Prior actions are the legal conditions that determine aid disbursement, while benchmarks describe the contents and progress of an aid project. We find that, in particular, China is challenging the way the World Bank is providing aid to African countries, and its impact appears evident from the World Bank’s response; it has reduced the number of prior actions. However, providing an alternate source to China’s aid for other regions seems rather difficult, as no statistically significant association between China’s aid and prior actions can be found.

Suggested Citation

  • Shazmeen Maroof, 2020. "Assessing the Impact of China’s Aid on the World Bank Conditionality," Working Papers 2017, University of Strathclyde Business School, Department of Economics.
    • Handle: RePEc:str:wpaper:2017
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    More about this item

    Keywords

    China’s aid; World Bank conditionality; prior actions; benchmarks;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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