Simone Dietrich

Foreign Aid Allocation Tactics and Democratic Change in Africa

Over the past two decades, donors increasingly link foreign aid to democracy objectives in Africa. This study investigates whether and how foreign aid influences specific outcomes associated with democratic transition and consolidation. Using an instrumental variables approach for the period from 1989 to 2008, we show that economic aid increases the likelihood of transition to multiparty politics, while democracy aid furthers democratic consolidation by reducing the incidence of multiparty failure and electoral misconduct. However, we find little evidence that either economic or democracy aid influences opposition support in multiparty elections. These findings have implications for understanding how donors allocate aid and the political consequences of foreign assistance in Africa.

Donor Political Economies and the Pursuit of Aid Effectiveness

In response to corruption and inefficient state institutions in recipient countries, some foreign aid donors outsource the delivery of aid to nonstate development actors. Other donor governments continue to support state management of aid, seeking to strengthen recipient states. These cross-donor differences can be attributed in large measure to different national orientations about the appropriate role of the state in public service delivery. Countries that place a high premium on market efficiency (for example, the United States, United Kingdom, Sweden) will outsource aid delivery in poorly governed recipient countries to improve the likelihood that aid reaches the intended beneficiaries of services. In contrast, states whose political economies emphasize a strong state in service provision (for example, France, Germany, Japan) continue to support state provision. This argument is borne out by a variety of tests, including statistical analysis of dyadic time-series cross-section aid allocation data and individual-level survey data on a cross-national sample of senior foreign aid officials. To understand different aid policies, one needs to understand the political economies of donors.

Foreign Aid and Government Legitimacy

Branding of foreign aid may undermine government legitimacy in developing countries when citizens see social services being provided by external actors. We run a survey experiment on a sample of Indian respondents. All subjects learn about an HIV/AIDS program; treated subjects learn that it was foreign-funded. We find null results that, along with existing results in the literature obtained from observational data, call into question the view that foreign-funded service delivery interferes with the development of a fiscal contract between the state and its citizens.

Human rights shaming through INGOs and foreign aid delivery

Does the “shaming” of human rights violations influence foreign aid delivery decisions across OECD donor countries? We examine the effect of shaming, defined as targeted negative attention by human rights international nongovernmental organizations (INGOs), on donor decisions about how to deliver bilateral aid. We argue that INGO shaming of recipient countries leads donor governments, on average, to “bypass” the recipient government in favor of non-state aid delivery channels, including international and local NGOs and international organizations (IOs). However, we expect this relationship to be conditional on a donor country’s position in the international system. Minor power countries have limited influence in global affairs and are therefore more able to centrally promote human rights in their foreign policy. Major power countries, on the other hand, shape world politics and often confront “realpolitik” concerns that may require government-to-government aid relations in the presence of INGO shaming. We thus expect aid officials of minor donor countries to be more likely to condition aid delivery decisions on human rights shaming than their counterparts of major donor countries. Using compositional data analysis, we test our argument using originally collected data on human rights shaming events and an originally constructed measure of bilateral aid delivery in a time-series cross-sectional framework from 2004 to 2010. We find support for our hypotheses: On average, OECD donor governments increase the proportion of bypass when INGOs shame the recipient government. When differentiating between donor types we find that this finding holds for minor but not for major powers. These results add to both our understanding of the influences of aid allocation decision-making and our understanding of the role of INGOs on foreign-policy.

Foreign Aid, Foreign Policy, and Domestic Government Legitimacy: Experimental Evidence from Bangladesh

Foreign aid donors make themselves visible as the funders of development projects to improve citizen attitudes abroad. Do target populations receive these political communications in the intended fashion, and does the information succeed in changing attitudes? Despite the widespread use of various mechanisms to communicate information about foreign funding, little evidence exists about their effectiveness. We embed an informational experiment about a US-funded health project in a nationwide survey in Bangladesh. Although we find only limited recognition of the USAID brand, explicit information about US funding slightly improves general perceptions of the United States; it does not, however, change respondent’s opinions on substantive foreign policy issues. We also find that information increases confidence in local authorities. While our results suggest that information about foreign donors can effect attitudinal change, they also suggest that current mechanisms for information transmission might not be sufficient to do so.

Aiding the Virtuous Circle? International Development Assistance and Citizen Confidence in Government in Bangladesh

ABSTRACT In areas of limited statehood, foreign development assistance often finances public goods and services. Do citizens attribute the presence of this development assistance to their government and thereby generalize about the legitimacy of their own government because of it? In an informational experiment embedded in a nationwide survey in Bangladesh, we find evidence in line with the argument that the presence of foreign aid signals government competence. The informational treatment effects are particularly large among the majority of respondents who perceive high levels of corruption in their country.

Perceptions of foreign aid project quality in Bangladesh

How does information about the presence of foreign financing in a development project change people’s perceptions of that project? Using an informational experiment in Bangladesh, we find that information about US financing of a specific development intervention sends a positive signal about project quality; this effect is concentrated among individuals who are the least likely to have been exposed to the information ex ante. The information does not change the already high demand for foreign aid but does help citizens target their demands toward the existing donor. That foreign funding can be a signal of project quality helps explain an existing finding in the literature that individuals prefer foreign aid projects to government projects.