Is the Threat of Foreign Aid Withdrawal an Effective Deterrent to Political Oppression? Evidence from 53 African Countries

Journal of Economic Issues, 51(1), pp. 201-221 (March, 2017).

35 Pages Posted: 28 Jun 2016 Last revised: 9 Mar 2017

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

Coventry University

Date Written: January 26, 2016

Abstract

This study complements existing literature on the aid-institutions nexus by focusing on political rights, aid volatilities and the post-Berlin Wall period. The findings show that while foreign aid does not have a significant effect on political rights, foreign aid volatilities do mitigate democracy in recipient countries. Such volatilities could be used by populist parties to promote a neocolonial agenda, instill nationalistic sentiments and consolidate their grip on power. This is especially the case when donors are asking for standards that majority of the population do not want and political leaders are unwilling to implement them. The empirical evidence is based on 53 African countries for the period 1996-2010. As a main policy implication, creating uncertainties in foreign aid for political rights enhancement in African countries may achieve the opposite results. Other implications are discussed including the need for an ‘After Washington consensus’.

Keywords: Uncertainty; Foreign aid; Political Rights; Development; Africa

JEL Classification: C53; F35; F47; O11; O55

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta, Is the Threat of Foreign Aid Withdrawal an Effective Deterrent to Political Oppression? Evidence from 53 African Countries (January 26, 2016). Journal of Economic Issues, 51(1), pp. 201-221 (March, 2017). . Available at SSRN: https://ssrn.com/abstract=2800811 or http://dx.doi.org/10.2139/ssrn.2800811

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Jacinta Nwachukwu

Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
26
Abstract Views
235
PlumX Metrics