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Donor Fragmentation, Aid Shocks, and Violent Political Conflict

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  • Raynee Gutting
  • Martin C. Steinwand

Abstract

Recent debates have focused on the negative role of the proliferation of foreign aid facilities and donor fragmentation for development outcomes and recipient country institutions. This article investigates an overlooked positive side effect of donor proliferation. With an increasing number of donors, exposure to negative aid shocks decreases, as well as the impact of such shocks on violent political conflict. Using data on 106 recipient countries for the years 1970 to 2008 and employing event history and mediation analysis, we find strong evidence that fragmentation significantly reduces the risk for political destabilization associated with aid shocks.

Suggested Citation

  • Raynee Gutting & Martin C. Steinwand, 2017. "Donor Fragmentation, Aid Shocks, and Violent Political Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 61(3), pages 643-670, March.
    • Handle: RePEc:sae:jocore:v:61:y:2017:i:3:p:643-670
    DOI: 10.1177/0022002715595701
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    References listed on IDEAS

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    2. Rune Jansen Hagen, 2018. "Losing concentration? Lessons from a Swedish aid policy reform," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 984-1003, September.
    3. Heidi Kaila & Saurabh Singhal & Divya Tuteja, 2017. "Do fences make good neighbours?: Evidence from an insurgency in India," WIDER Working Paper Series wp-2017-158, World Institute for Development Economic Research (UNU-WIDER).
    4. Fløgstad, Cathrin & Hagen, Rune Jansen, 2017. "Aid Dispersion: Measurement in Principle and Practice," World Development, Elsevier, vol. 97(C), pages 232-250.
    5. Karell, Daniel & Schutte, Sebastian, 2018. "Aid, Exclusion, and the Local Dynamics of Insurgency in Afghanistan," SocArXiv 6ea2r, Center for Open Science.
    6. Gehring, Kai & Michaelowa, Katharina & Dreher, Axel & Spörri, Franziska, 2017. "Aid Fragmentation and Effectiveness: What Do We Really Know?," World Development, Elsevier, vol. 99(C), pages 320-334.

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