Democracy for Money: Impact of Western Financial Aid on Democratic Consolidation in Eastern Europe and Eurasia
University of South Carolina
APSA 2011 Annual Meeting Paper
This paper analyzes the impact of Western financial assistance on democratic consolidation in the post-communist countries of Eastern Europe and Eurasia. In contrast to the prior research results indicating that external aid seldom results either in economic growth or democratic development, the present study establishes a strong correlation between the amounts and destinations of assistance on the one hand, and the strengthening of democracy indices on the other. This finding might point at an exceptional character of transition in Eastern Europe and is explained by the outstanding importance of the region from the viewpoint of the donors’ geostrategic interests. It equally implies that the West allocated aid selectively and welcomed only the chosen few into the élite club of prosperous democratic nations and the North Atlantic zone of peace.
Number of Pages in PDF File: 36
Keywords: international financial assistance, democratic transition, international organizations, geopolitics
JEL Classification: P26
Date posted: August 1, 2011 ; Last revised: August 16, 2011