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Can foreign aid donors credibly threaten to suspend aid? Evidence from a cross-national survey of donor officials

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  • Haley J. Swedlund

Abstract

Under what conditions are foreign aid donors willing to suspend foreign aid to punish political transgressions, such as election fraud, corruption scandals or political repression? Prior scholarship has emphasized that political sanctions, including foreign aid suspensions, are constrained by the geostrategic considerations of donor countries. However, foreign aid suspensions often occur in strategically important countries, and donors respond differently to different types of political transgressions within the same county. To shed light on this puzzle, in this article, I present evidence from an original survey of top-level donor representatives in 20 African countries, including a list experiment designed to elicit truthful responses about the conditions under which donors are willing to suspend foreign aid. I argue that the likelihood of a foreign aid suspension depends not only on the strategic considerations of the donor government, but also on the institutional incentives of the donor agency. A donor agency's institutional incentives are shaped by the agency's organizational design, as well as by its foreign aid portfolio in the recipient country.

Suggested Citation

  • Haley J. Swedlund, 2017. "Can foreign aid donors credibly threaten to suspend aid? Evidence from a cross-national survey of donor officials," Review of International Political Economy, Taylor & Francis Journals, vol. 24(3), pages 454-496, May.
    • Handle: RePEc:taf:rripxx:v:24:y:2017:i:3:p:454-496
    DOI: 10.1080/09692290.2017.1302490
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    Citations

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    Cited by:

    1. Samuel Brazys & Krishna Chaitanya Vadlamannati & Tianyang Song, 2019. "Which Wheel Gets the Grease? Constituent Agency and Sub-national World Bank Aid Allocation," Working Papers 201907, Geary Institute, University College Dublin.
    2. Robert Ferritto, 2024. "Will policy help close the digital gender divide? An intersectional feminist policy analysis of Ethiopia's national digital policy," Development Policy Review, Overseas Development Institute, vol. 42(2), March.
    3. Krishna Chaitanya Vadlamannati & Yuanxin Li & Samuel Brazys & Alexander Dukalskis, 2019. "Building Bridges or Breaking Bonds? The Belt and Road Initiative and Foreign Aid Competition," Working Papers 201906, Geary Institute, University College Dublin.
    4. Corwin, Hillary, 2023. "Coercive and catalytic strategies for human rights promotion: State violence and foreign assistance," World Development, Elsevier, vol. 167(C).
    5. Portela, Clara & Mora-Sanguinetti, Juan S., 2023. "Sanctions effectiveness, development and regime type. Are aid suspensions and economic sanctions alike?," World Development, Elsevier, vol. 172(C).
    6. Suzuki, Mao, 2020. "Profits before patients? Analyzing donors’ economic motives for foreign aid in the health sector," World Development, Elsevier, vol. 132(C).
    7. Cheeseman, Nic & Swedlund, Haley J. & O'Brien-Udry, Cleo, 2024. "Foreign aid withdrawals and suspensions: Why, when and are they effective?," World Development, Elsevier, vol. 178(C).
    8. Johannes Karreth & Jason Quinn & Madhav Joshi & Jaroslav Tir, 2023. "International Third Parties and the Implementation of Comprehensive Peace Agreements After Civil War," Journal of Conflict Resolution, Peace Science Society (International), vol. 67(2-3), pages 494-521, February.
    9. Dorband, Ira Irina & Jakob, Michael & Steckel, Jan Christoph, 2020. "Unraveling the political economy of coal: Insights from Vietnam," Energy Policy, Elsevier, vol. 147(C).
    10. Jin Mun Jeong, 2020. "Economic sanctions and income inequality: impacts of trade restrictions and foreign aid suspension on target countries," Conflict Management and Peace Science, Peace Science Society (International), vol. 37(6), pages 674-693, November.
    11. Dasandi, Niheer & Erez, Lior, 2023. "The flag and the stick: Aid suspensions, human rights, and the problem of the complicit public," World Development, Elsevier, vol. 168(C).

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