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The West's aid dilemma and the Chinese solution?

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  • Xiaobing Wang
  • Adam Ozanne
  • Xin Hao

Abstract

There are currently two contrasting approaches towards aid policy in Africa: that followed by the West is well known for its conditionality and selectivity and focus on direct financial support, while the approach adopted by China eschews conditionality and concentrates on infrastructure building. The Chinese approach has been criticized for its failure to create direct employment and because, it is argued, its unconditionality hampers good governance in Africa. However, this paper argues that the West faces a dilemma in that governance and its improvements are endogenous to the economic development of a country. Making aid conditional upon governance therefore unduly penalizes countries at the bottom. The Chinese approach, in contrast, avoids this dilemma by directly targeting constraints to development; it may therefore be more effective in generating long-run growth, which may in turn foster good governance.

Suggested Citation

  • Xiaobing Wang & Adam Ozanne & Xin Hao, 2014. "The West's aid dilemma and the Chinese solution?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(1), pages 47-61, February.
    • Handle: RePEc:taf:jocebs:v:12:y:2014:i:1:p:47-61
    DOI: 10.1080/14765284.2013.875287
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    References listed on IDEAS

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    1. Justin Yifu Lin, 2012. "New Structural Economics : A Framework for Rethinking Development and Policy," World Bank Publications - Books, The World Bank Group, number 2232.
    2. World Bank, 2000. "Can Africa Claim the 21st Century?," World Bank Publications - Books, The World Bank Group, number 22962.
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    Cited by:

    1. Zhiming Cheng & Russell Smyth, 2016. "Why Give it Away When You Need it Yourself? Understanding Public Support for Foreign Aid in China," Journal of Development Studies, Taylor & Francis Journals, vol. 52(1), pages 53-71, January.
    2. Tianbao Qin, 2014. "Challenges for Sustainable Development and Its Legal Response in China: A Perspective for Social Transformation," Sustainability, MDPI, vol. 6(8), pages 1-32, August.
    3. Marson, Marta & Savin, Ivan, 2022. "Complementary or adverse? Comparing development results of official funding from China and traditional donors in Africa," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 189-206.
    4. Yuanyuan Yang & Shuwen Zhang & Dongyan Wang & Jiuchun Yang & Xiaoshi Xing, 2014. "Spatiotemporal Changes of Farming-Pastoral Ecotone in Northern China, 1954–2005: A Case Study in Zhenlai County, Jilin Province," Sustainability, MDPI, vol. 7(1), pages 1-22, December.

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