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Chinese Aid to Africa: Distinguishing Features and Local Effects

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  • Ann-Sofie Isaksson
  • Andreas Kotsadam

Abstract

Drawing on our recent work on local effects of Chinese development projects in Africa, this review article highlights a number of distinguishing features of Chinese aid, and discusses how these may translate into local aid impacts that differ from those of other donors. Unlike aid from other major donors, Chinese aid projects were found to fuel local corruption, discourage trade union involvement, to not increase political incumbency support, and to make ethnic identities more salient in the local areas. As such, our findings highlight important donor heterogeneities as well as the need to consider not only to what extent aid achieves its explicit objectives, but also its potential unintended effects, or externalities.
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Suggested Citation

  • Ann-Sofie Isaksson & Andreas Kotsadam, 2020. "Chinese Aid to Africa: Distinguishing Features and Local Effects," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(02), pages 27-31, July.
    • Handle: RePEc:ces:ifofor:v:21:y:2020:i:02:p:27-31
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    References listed on IDEAS

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    1. Carl Henrik Knutsen & Andreas Kotsadam & Eivind Hammersmark Olsen & Tore Wig, 2017. "Mining and Local Corruption in Africa," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 320-334, April.
    2. Samuel Brazys & Johan A. Elkink & Gina Kelly, 2017. "Bad neighbors? How co-located Chinese and World Bank development projects impact local corruption in Tanzania," The Review of International Organizations, Springer, vol. 12(2), pages 227-253, June.
    3. Knutsen, Tora & Kotsadam, Andreas, 2020. "The political economy of aid allocation: Aid and incumbency at the local level in Sub Saharan Africa," World Development, Elsevier, vol. 127(C).
    4. Isaksson, Ann-Sofie & Kotsadam, Andreas, 2018. "Chinese aid and local corruption," Journal of Public Economics, Elsevier, vol. 159(C), pages 146-159.
    5. Isaksson, Ann-Sofie, 2020. "Chinese Aid and Local Ethnic Identification," International Organization, Cambridge University Press, vol. 74(4), pages 833-852, October.
    6. Isaksson, Ann-Sofie & Kotsadam, Andreas, 2018. "Racing to the bottom? Chinese development projects and trade union involvement in Africa," World Development, Elsevier, vol. 106(C), pages 284-298.
    7. Benn Eifert & Edward Miguel & Daniel N. Posner, 2010. "Political Competition and Ethnic Identification in Africa," American Journal of Political Science, John Wiley & Sons, vol. 54(2), pages 494-510, April.
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    Cited by:

    1. Kohnert, Dirk, 2021. "Le Sommet UE-Afrique 2021 : Quo vadis, compte tenu du Brexit et de la Covid-19 [The EU-Africa summit 2021 : Quo vadis, in the light of Brexit and Corona]," MPRA Paper 106318, University Library of Munich, Germany.
    2. Kohnert, Dirk, 2021. "The EU-Africa summit 2021 : Quo vadis, in the light of Brexit and Corona," AfricArxiv wqxd6, Center for Open Science.
    3. Valentin Lindlacher & Gustav Pirich, 2024. "The Impact of China’s “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa," CESifo Working Paper Series 10893, CESifo.
    4. Dreher, Axel & Lang, Valentin & Reinsberg, Bernhard, 2024. "Aid effectiveness and donor motives," World Development, Elsevier, vol. 176(C).
    5. Kohnert, Dirk, 2021. "Dunkle Wolken über dem EU-Afrika Gipfel 2021 angesichts von Brexit und Corona [The EU-Africa summit 2021 : Quo vadis, in the light of Brexit and Corona]," MPRA Paper 106396, University Library of Munich, Germany.
    6. Ku McMahan & Saad Usmani, 2022. "The Economic Benefits of Supporting Private Social Enterprise at the Nexus of Water and Agriculture: A Social Rate of Return Analysis of the Securing Water for Food Grand Challenge for Development," Sustainability, MDPI, vol. 14(10), pages 1-16, May.

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    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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