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From domestic to international justice: the welfare state and foreign aid

Published online by Cambridge University Press:  22 May 2009

Alain Noël
Affiliation:
Associate Professor of Political Science at the Université de Montréal, Québec.
Jean-Philippe Thérien
Affiliation:
Associate Professor of Political Science at the Université de Montréal, Québec.
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Abstract

Foreign aid often is interpreted as an international projection of domestic income redistribution mechanisms, and many authors suggest that differences between welfare states account for variations in donor behavior. A new understanding of the welfare state can improve traditional explanations of this linkage. Existing studies of the welfare–aid relationship use two welfare state indicators: domestic spending and partisan politics. We propose a third type of indicator—the institutional attributes of the welfare state—and demonstrate its relevance. The level of foreign aid provided by a country varies with social spending, but even more so with the degree to which its welfare state embodies socialist attributes. This finding helps explain how domestic political institutions influence the evolution of international cooperation and, specifically, how welfare principles institutionalized at the domestic level shape the participation of developed countries in the international aid regime.

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Copyright
Copyright © The IO Foundation 1995

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References

An earlier version of this article was presented at the annual meeting of the American Political Science Association, New York, l–t September 1994. We are grateful to Bernard Cantin for his important contribution as a research assistant. We also wish to thank André Blais, Andrew F. Cooper, Stéphane Dion, Stephen D. Krasner, Pierre Martin, Richard Nadeau, Cranford Pratt, and three anonymous reviewers for their helpful comments on previous drafts. This research project was supported by grants from the Fonds FCAR (Quebec) and the Social Sciences and Humanities Research Council of Canada.

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45. Since Esping-Andersen's scores are based on 1980 data, we used 1980 data for other variables as well. Ideally, the analysis should be replicated for other years. Given the structural character of welfare state attributes, however, the results would probably be congruent with those presented here, as is suggested by the discussion of the cases that follows Table 2. [To make sure data for 1980 were not unrepresentative, we also tested the equations with a 1971–89 aid average. The results were essentially the same, with adjusted R2 of.61,.31, and.76, for socialist score, social transfers, and their combination, respectively. Regressions for the independent variables not included in Table 2 (total spending and party composition of government) and for various combinations of independent variables also confirmed the findings presented above. To guarantee the robustness of our results, we ran sixteen regressions where, each time, a different case was omitted. Again, the findings proved stable.]

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