Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-26T05:41:56.842Z Has data issue: false hasContentIssue false

Foreign Aid and State Legitimacy

Evidence on Chinese and US Aid to Africa from Surveys, Survey Experiments, and Behavioral Games

Published online by Cambridge University Press:  16 March 2021

Get access

Abstract

What are the effects of foreign aid on the perceived legitimacy of recipient states? Different donors adhere to different rules, principles, and operating procedures. The authors theorize that variation in these aid regimes may generate variation in the effects of aid on state legitimacy. To test their theory, they compare aid from the United States to aid from China, its most prominent geopolitical rival. Their research design combines within-country analysis of original surveys, survey experiments, and behavioral games in Liberia with cross-country analysis of existing administrative and Afrobarometer data from six African countries. They exploit multiple proxies for state legitimacy, but focus in particular on tax compliance and morale. Contrary to expectations, the authors find little evidence to suggest that exposure to aid diminishes the legitimacy of African states. If anything, the opposite appears to be true. Their results are consistent across multiple settings, multiple levels of analysis, and multiple measurement and identification strategies, and are unlikely to be artifacts of sample selection, statistical power, or the strength or weakness of particular experimental treatments. The authors conclude that the effects of aid on state legitimacy at the microlevel are largely benign.

Type
Research Article
Copyright
Copyright © Trustees of Princeton University 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Achen, Christopher H., and Bartels, Larry M.. 2004. “Blind Retrospection: Electoral Responses to Drought, Flu, and Shark Attacks.” Working Paper. At https://international.ucla.edu/media/files/PERG.Achen.pdf, accessed December 29, 2020.Google Scholar
Achen, Christopher H., and Bartels, Larry M.. 2012. “Blind Retrospection: Why Shark Attacks Are Bad for Democracy.” Working Paper 5-2013. Nashville, Tenn.: Vanderbilt University. Center for the Study of Democratic Institutions. At https://my.vanderbilt.edu/larrybartels/files/2011/12/CSDI_WP_05-2013.pdf, accessed December 29, 2020.Google Scholar
AidData Research and Evaluation Unit. 2017. “Geocoding Methodology, Version 2.0.2.” Williamsburg, Va.: William & Mary AidData. At https://www.aiddata.org/publications/geocoding-methodology-version-2-0, accessed December 28, 2020.Google Scholar
Alden, Chris. 2007. China in Africa. London, UK: Zed Books.CrossRefGoogle Scholar
Alm, James, Jackson, Betty R., and McKee, Michael. 1992. “Estimating the Determinants of Taxpayer Compliance with Experimental Data.National Tax Journal 45, no. 1: 107–14. At https://www.jstor.org/stable/41788949.CrossRefGoogle Scholar
Bababekov, Yanik J., Stapleton, Sahael M., Mueller, Jessica L., Zhi Ven, Fong, and Chang, David C.. 2018. “A Proposal to Mitigate the Consequences of Type 2 Error in Surgical Science.Annals of Surgery 267, no. 4: 621–22. At https://doi.org/10.1097/sla.0000000000002547.CrossRefGoogle ScholarPubMed
Baldwin, Kate, and Winters, Matthew S.. 2018. “Bypass Aid and Perceptions of Local Government Performance and Legitimacy.” Working Paper no. 56. Williamsburg, Va.: William & Mary AidData. At https://www.aiddata.org/publications/bypass-aid-and-perceptions-of-local-government-performance-and-legitimacy, accessed January 4, 2021.Google Scholar
BenYishay, Ariel, Rotberg, Renee, Wells, Jessica, Lv, Zhonghui, Goodman, Seth, Kovacevic, Lidia, and Runfola, Dan. 2017. “Geocoding Afrobarometer Rounds 1-6: Methodology & Data Quality.” Williamsburg, Va.: William & Mary AidData. At https://www.aiddata.org/publications/geocoding-afrobarometer-rounds-1-6-methodology-data-quality, accessed December 28, 2020.Google Scholar
Blair, Robert A. 2018. “Legitimacy after Violence: Evidence from Two Lab-in-the-Field Experiments in Liberia.” SSRN Working Paper 2326671. At http://dx.doi.org/10.2139/ssrn.2326671.CrossRefGoogle Scholar
Blair, Robert A., Karim, Sabrina M., and Morse, Benjamin S.. 2019. “Establishing the Rule of Law in Weak and War-Torn States: Evidence from a Field Experiment with the Liberian National Police.American Political Science Review 113, no. 3: 641–57. At https://doi.org/10.1017/S0003055419000121.CrossRefGoogle Scholar
Blair, Robert A., Morse, Benjamin S., and Tsai, Lily L.. 2017. “Public Health and Public Trust: Survey Evidence from the Ebola Virus Disease Epidemic in Liberia.” Social Science & Medicine 172, January: 89–97. At https://doi.org/10.1016/j.socscimed.2016.11.016.CrossRefGoogle Scholar
Blair, Robert A., and Roessler, Philip. 2021a. “Replication files for: Foreign Aid and State Legitimacy: Evidence on Chinese and US Aid to Africa from Surveys, Survey Experiments, and Behavioral Games.” Harvard Dataverse, V1. At https://doi.org/10.7910/DvN/5JH0WJ.CrossRefGoogle Scholar
Blair, Robert A., and Roessler, Philip. 2021b. “Supplementary material for: Foreign Aid and State Legitimacy: Evidence on Chinese and US Aid to Africa from Surveys, Survey Experiments, and Behavioral Games.” At https:/doi.org/10.1017/S004388712000026X.CrossRefGoogle Scholar
Blair, Robert A., and Winters, Matthew S.. 2020. “Foreign Aid and State-Society Relations: Theory, Evidence, and New Directions for Research.Studies in Comparative International Development 55, no. 2: 123–42. At https://doi.org/10.1007/s12116-020-09301-w.CrossRefGoogle Scholar
Bluhm, Richard, Dreher, Axel, Fuchs, Andreas, Parks, Bradley, Strange, Austin, and Tierney, Michael. 2018. “Connective Financing: Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries.” Working Paper no. 64. Williamsburg, Va.: William & Mary AidData. At https://www.aiddata.org/publications/connective-finance-chinese-infrastructure-projects, accessed December 29, 2020.Google Scholar
Böhnke, Jan, Koehler, Jan, and Zürcher, Christoph. 2010. “Assessing the Impact of Development Cooperation in North East Afghanistan 2005-2009: Final Report.” Evaluation Reports 049. Bonn, Germany: Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung. At https://www.oecd.org/countries/afghanistan/46785983.pdf, accessed December 29, 2020.Google Scholar
Böhnke, Jan, and Christoph, Zürcher. 2013. “Aid, Minds and Hearts: The Impact of Aid in Conflict Zones.Conflict Management and Peace Science 30, no. 5: 411–32. At https:Zdoi.org/10.1177/0738894213499486.CrossRefGoogle Scholar
Bratton, Michael. 1989. “The Politics of Government-NGO Relations in Africa.World Development 17, no. 4: 569–87. At https:/doi.org/10.1016/0305-750x(89)90263-5.CrossRefGoogle Scholar
Bräutigam, Deborah. 2009. The Dragon’s Gift: The Real Story of China in Africa. New York, N.Y.: Oxford University Press.Google Scholar
Bräutigam, Deborah, Fjeldstad, Odd-Helge, and Moore, Mick, eds. 2008. Taxation and State-Building in Developing Countries: Capacity and Consent. New York, N.Y.: Cambridge University Press.CrossRefGoogle Scholar
Bräutigam, Deborah A., and Knack, Stephen. 2004. “Foreign Aid, Institutions, and Governance in Sub-Saharan Africa.Economic Development and Cultural Change 52, no. 2: 255–85. At https:/doi.org/10.1086/380592.CrossRefGoogle Scholar
Brazys, Samuel, Elkink, Johan A., and Kelly, Gina. 2017. “Bad Neighbors? How Co-located Chinese and World Bank Development Projects Impact Local Corruption in Tanzania.Review of International Organizations 12, no. 2: 227–53. At https:Zdoi.org/10.1007/s11558-017-9273-4.CrossRefGoogle Scholar
Briggs, Ryan C. 2019. “Receiving Foreign Aid Can Reduce Support for Incumbent Presidents.Political Research Quarterly 72, no. 3: 610–22. At https:/doi.org/10.1177/1065912918798489.CrossRefGoogle Scholar
Bueno de Mesquita, Bruce, and Smith, Alastair. 2009. “A Political Economy of Aid.International Organization 63, no. 2: 309–40. At https://doi.org/10.1017/s0020818309090109.CrossRefGoogle Scholar
Bullock, John G., Green, Donald P., and Ha, Shang E.. 2010. “Yes, But What’s the Mechanism? (Don’t Expect an Easy Answer).Journal of Personality and Social Psychology 98, no. 4: 550–58. At https://doi.org/10.1037/a0018933.CrossRefGoogle ScholarPubMed
Cruz, Cesi, and Schneider, Christina J.. 2017. “Foreign Aid and Undeserved Credit Claiming.American Journal of Political Science 61, no. 2: 396408. At https://doi.org/10.1111/ajps.12285.CrossRefGoogle Scholar
Dietrich, Simone, Mahmud, Minhaj, and Winters, Matthew S.. 2018. “Foreign Aid, Foreign Policy, and Domestic Government Legitimacy: Experimental Evidence from Bangladesh.Journal of Politics 80, no. 1: 133–48. At https://doi.org/10.1086/694235.CrossRefGoogle Scholar
Dietrich, Simone, and Winters, Matthew S.. 2015. “Foreign Aid and Government Legitimacy.Journal of Experimental Political Science 2, no. 2: 164–71. At https://doi.org/10.1017/xps.2014.31.Google Scholar
Dolan, Lindsay R. 2020. “Rethinking Foreign Aid and Legitimacy: Views from Aid Recipients in Kenya.Studies in Comparative International Development 55, no. 2: 143–59. At https://doi.org/10.1007/s12116-020-09302-9.CrossRefGoogle Scholar
Dreher, Axel, and Andreas, Fuchs. 2015. “Rogue Aid? An Empirical Analysis of China’s Aid Allocation.Canadian Journal of Economics/Revue Canadienne d’Économique 48, no. 3: 9881023. At https://doi.org/10.1111/caje.12166.CrossRefGoogle Scholar
Dreher, Axel, Fuchs, Andreas, Hodler, Roland, Parks, Bradley, Raschky, Paul, and Tierney, Michael J.. 2016. “Aid on Demand: African Leaders and the Geography of China’s Foreign Assistance.” Working Paper no. 3, revised. Williamsburg, Va.: William & Mary AidData. At https://doi.org/10.2139/ssrn.2531966.CrossRefGoogle Scholar
Dreher, Axel, Fuchs, Andreas, Parks, Brad, Strange, Austin M., and Tierney, Michael J.. 2018. “Apples and Dragon Fruits: The Determinants of Aid and Other Forms of State Financing from China to Africa.International Studies Quarterly 62, no. 1: 182–94. At https://doi.org/10.1093/isq/sqx052.CrossRefGoogle Scholar
Fain, Haskell. 1972. “The Idea of the State.Noûs 6, no. 1: 1526. At https://doi.org/10.2307/2214510.CrossRefGoogle Scholar
Fowler, Alan. 1991. “The Role of NGOs in Changing State-Society Relations: Perspectives from Eastern and Southern Africa.Development Policy Review 9, no. 1: 5384. At https://doi.org/10.1111/j.1467-7679.1991.tb00175.x.CrossRefGoogle Scholar
Gasper, John T., and Andrew Reeves. 2011. “Make It Rain? Retrospection and the Attentive Electorate in the Context of Natural Disasters.American Journal of Political Science 55, no. 2: 340–55. At https://doi.org/10.1111Zj.1540-5907.2010.00503.x.CrossRefGoogle Scholar
Gelman, Andrew, and John, Carlin. 2014. “Beyond Power Calculations: Assessing Type S (Sign) and Type M (Magnitude) Errors.Perspectives on Psychological Science 9, no. 6: 641–51. At https:/doi.org/10.1177/1745691614551642.CrossRefGoogle ScholarPubMed
Gilley, Bruce. 2009. The Right to Rule: How States Win and Lose Legitimacy. New York, N.Y.: Columbia University Press.Google Scholar
Gubser, Peter. 2002. “The Impact of NGOs on State and Non-State Relations in the Middle East.Middle East Policy 9, no. 1: 139–48. At https://doi.org/10.1111/1475-4967.00047.CrossRefGoogle Scholar
Guiteras, Raymond P., and Ahmed Mushfiq Mobarak. 2015. “Does Development Aid Undermine Political Accountability? Leader and Constituent Responses to a Large-Scale Intervention.” NBER Working Paper no. 21434. Cambridge, Mass.: National Bureau of Economic Research. At https://doi.org/10.3386/w21434.CrossRefGoogle Scholar
Hanauer, Larry, and Morris, Lyle J.. 2014. Chinese Engagement in Africa: Drivers, Reactions, and Implications for U.S. Policy. Santa Monica, Calif.: RAND Corporation.CrossRefGoogle Scholar
Harding, Robin. 2010. “Urban-Rural Differences in Support for Incumbents across Africa.” Working Paper no. 120. Afrobarometer. At https://afrobarometer.org/publications/wp120-urban-rural-differences-support-incumbents-across-africa, accessed December 29, 2020.Google Scholar
Healy, Andrew, and Neil, Malhotra. 2010. “Random Events, Economic Losses, and Retrospective Voting: Implications for Democratic Competence.Quarterly Journal of Political Science 5, no. 2: 193208. At https://doi.org/10.1561/100.00009057.CrossRefGoogle Scholar
Healy, Andrew J., Neil, Malhotra, and Cecilia, Hyunjung Mo. 2010. “Irrelevant Events Affect Voters’ Evaluation of Government Performance.Proceedings of the National Academy of Sciences 107, no. 29: 12804–09. At https://doi.org/10.1073/pnas.1007420107.CrossRefGoogle Scholar
Isaksson, Ann-Sofie, and Andreas, Kotsadam. 2018a. “Chinese Aid and Local Corruption.Journal of Public Economics 159, March: 146–59. At https://doi.org/10.1016/j.jpubeco.2018.01.002.CrossRefGoogle Scholar
Isaksson, Ann-Sofie, and Andreas, Kotsadam. 2018b. “Racing to the Bottom? Chinese Development Projects and Trade Union Involvement in Africa.World Development 106, June: 284–98. At https://doi.org/10.1016/j.worlddev.2018.02.003.CrossRefGoogle Scholar
Kelly, Gina, Brazys, Samuel, and Elkink, Johan A.. 2016. “The Dragon’s Curse? China, the World Bank, and Perceptions of Corruption in Tanzania.” Working Paper no. 26. Williamsburg, Va.: William & Mary AidData. At https://www.aiddata.org/publications/the-dragons-curse-china-the-world-bank-and-perceptions-of-corruption-in-tanzania, accessed January 4, 2021.Google Scholar
Knack, Stephen. 2004. “Does Foreign Aid Promote Democracy?International Studies Quarterly 48, no. 1: 251–66. At https://doi.org/10.1111/j.0020-8833.2004.00299.x.CrossRefGoogle Scholar
Koter, Dominika. 2013. “Urban and Rural Voting Patterns in Senegal: The Spatial Aspects of Incumbency, c. 1978-2012.Journal of Modern African Studies 51, no. 4: 653–79. At https://doi.org/10.1017/S0022278X13000621.CrossRefGoogle Scholar
Lekorwe, Mogopodi, Chingwete, Anyway, Okuru, Mina, and Samson, Romaric. 2016. “China’s Growing Presence in Africa Wins Largely Positive Popular Reviews.” Afrobarometer Dispatch no. 122. At https://www.afrobarometer.org/publications/ad122-chinas-growing-presence-africa-wins-largely-positive-popular-reviews, accessed January 4, 2021.Google Scholar
Levi, Margaret. 2006. “Why We Need a New Theory of Government.Perspectives on Politics 4, no. 1: 519. At https://doi.org/10.1017/s1537592706060038.CrossRefGoogle Scholar
Levi, Margaret, Sacks, Audrey, and Tyler, Tom. 2009. “Conceptualizing Legitimacy, Measuring Legitimating Beliefs.American Behavioral Scientist 53, no. 3: 354–75. At https://doi.org/10.1177/0002764209338797.CrossRefGoogle Scholar
Luttmer, Erzo F. P., and Monica Singhal. 2014. “Tax Morale.Journal of Economic Perspectives 28 no. 4: 149–68. At https://doi.org/10.1257/jep.28.4.149.CrossRefGoogle Scholar
Mcloughlin, Claire. 2015. “When Does Service Delivery Improve the Legitimacy of a Fragile or Conflict-Affected State?Governance 28, no. 3: 341–56. At https://doi.org/10.1111/gove.12091.CrossRefGoogle Scholar
Mcloughlin, Claire. 2018. “When the Virtuous Circle Unravels: Unfair Service Provision and State De-Legitimation in Divided Societies.Journal of Intervention and Statebuilding 12, no. 4: 527–44. At https://doi.org/10.1080/17502977.2018.1482126.CrossRefGoogle Scholar
Moyo, Dambisa. 2010. Dead Aid: Why Aid Makes Things Worse and How There Is Another Way for Africa. London, UK: Penguin.Google Scholar
Mukpo, Ashoka. 2014. Community Relations in the China Union Concession. Briefing no. 1. Monrovia, Liberia: Sustainable Development Institute. At https://sdiliberia.org/sites/default/files/publications/Community%20Relations%20in%20China%20Union%27s%20Concession.pdf, accessed December 29, 2020.Google Scholar
Naím, Moisés. 2007. “Missing Links: Rogue Aid.Foreign Policy 159: 96. At https://www.jstor.org/stable/25462153.Google Scholar
OECD. 2015. States of Fragility 2015:Meeting Post-2015 Ambitions. Paris, France: Organization for Economic Cooperation and Development. At https://doi.org/10.1787/9789264227699-en.Google Scholar
Sacks, Audrey. 2012. “Can Donors and Non-State Actors Undermine Citizens’ Legitimating Beliefs?” Working Paper no. 140. Afrobarometer. At https://afrobarometer.org/publications/can-donors-and-non-state-actors-undermine-citizens%E2%80%99-legitimating-beliefs, accessed December 29, 2020.Google Scholar
Schmelzle, Cord, and Eric, Stollenwerk. 2018. “Virtuous or Vicious Circle? Governance Effectiveness and Legitimacy in Areas of Limited Statehood.Journal of Intervention and Statebuilding 12, no. 4: 449–67. At https://doi.org/10.1080/17502977.2018.1531649.CrossRefGoogle Scholar
Svensson, Jakob. 2000. “Foreign Aid and Rent-Seeking.Journal of International Economics 51, no. 2: 437–61. At https://doi.org/10.1016/s0022-1996(99)00014-8.CrossRefGoogle Scholar
Timmons, Jeffrey F. 2005. “The Fiscal Contract: States, Taxes, and Public Services.World Politics 57, no. 4 (July): 530–67. At https://doi.org/10.1353/wp.2006.0015.CrossRefGoogle Scholar
Tyler, Tom R. 2006. “Psychological Perspectives on Legitimacy and Legitimation.Annual Review of Psychology 57: 375400. At https://doi.org/10.1146/annurev.psych.57.102904.190038.CrossRefGoogle ScholarPubMed
Vinck, Patrick, Phuong Pham, and Tino Kreutzer. 2011. Talking Peace: A Population-Based Survey on Attitudes about Security, Dispute Resolution, and Post-ConflictReconstruction in Liberia. Berkeley, Calif.: University of California, Berkeley, Human Rights Center. At https://escholarship.org/uc/item/59p3f3mn, accessed December 29, 2020.Google Scholar
Wade, Abdoulaye. 2008. “Time for the West to Practise What It Preaches.” Financial Times. January 23. At https://www.ft.com/content/5d347f88-c897-11dc-94a6-0000779fd2ac, accessed January 6, 2021.Google Scholar
Supplementary material: Link

Blair and Philip Dataset

Link
Supplementary material: PDF

Blair and Roessler supplementary material

Blair and Roessler supplementary material

Download Blair and Roessler supplementary material(PDF)
PDF 1.6 MB