AidData Working Paper Series

AidData’s Working Paper Series contains pre-publication papers addressing the causes and consequences of development finance; whether, when, and how data transparency and accountability initiatives lead to better decision making and improved development outcomes; and related research methods. The series is a forum where relevant papers and research findings can be disseminated more broadly to scholars, policymakers, and practitioners. The views expressed in AidData working papers are those of the authors and should not be attributed to AidData or funders of AidData’s work.

Additional Content: Featured Working Paper; How to submit a working paper;

All Working Papers

46

AidData Working Paper

Aid, China, and Growth: Evidence from a New Global Development Finance Dataset

2017-10-10

Axel Dreher, Andreas Fuchs, Bradley Parks, Austin M. Strange, Michael J. Tierney

A new dataset of official financing from China is used to investigate how Chinese aid affects economic growth in recipient countries.

AidData Working Paper

Aid, China, and Growth: Evidence from a New Global Development Finance Dataset

2017-10-10

Axel Dreher, Andreas Fuchs, Bradley Parks, Austin M. Strange, Michael J. Tierney

A new dataset of official financing from China is used to investigate how Chinese aid affects economic growth in recipient countries.

AidData Working Paper

Aid, China, and Growth: Evidence from a New Global Development Finance Dataset

2017-10-10

Axel Dreher, Andreas Fuchs, Bradley Parks, Austin M. Strange, Michael J. Tierney

A new dataset of official financing from China is used to investigate how Chinese aid affects economic growth in recipient countries.

This paper introduces a new dataset of official financing—including foreign aid and other forms of concessional and non-concessional state financing—from China to 138 countries between 2000 and 2014. We use these data to investigate whether and to what extent Chinese aid affects economic growth in recipient countries. To account for the endogeneity of aid, we employ an instrumental-variables strategy that relies on exogenous variation in the supply of Chinese aid over time resulting from changes in Chinese steel production. Variation across recipient countries results from a country’s probability of receiving aid. Controlling for year- and recipient-fixed effects that capture the levels of these variables, their interaction provides a powerful and excludable instrument. Our results show that Chinese official development assistance (ODA) boosts economic growth in recipient countries. For the average recipient country, we estimate that one additional Chinese ODA project produces a 0.7 percentage point increase in economic growth two years after the project is committed. We also benchmark the effectiveness of Chinese aid vis-á-vis the World Bank, the United States, and all members of the OECD’s Development Assistance Committee (DAC). Our results indicate that Chinese, U.S., and OECD-DAC ODA have positive effects on economic growth, but we find no robust evidence that World Bank aid promotes growth. We also find that, irrespective of the funding source, less concessional and more commercially-oriented types of official finance do not boost economic growth. Finally, we test the popular claim that significant financial support from China impairs the effectiveness of grants and loans from Western donors and lenders. Our results do not support this claim.

45

AidData Working Paper

How Transparency Affects Distributional Politics: A Field Experiment among Elected Incumbents in Malawi

2017-10-01

Ryan Jablonski, Brigitte Seim

Transparency leads to political incumbents allocating goods to communites with greater economic needs versus those of political support.

AidData Working Paper

How Transparency Affects Distributional Politics: A Field Experiment among Elected Incumbents in Malawi

2017-10-01

Ryan Jablonski, Brigitte Seim

Transparency leads to political incumbents allocating goods to communites with greater economic needs versus those of political support.

AidData Working Paper

How Transparency Affects Distributional Politics: A Field Experiment among Elected Incumbents in Malawi

2017-10-01

Ryan Jablonski, Brigitte Seim

Transparency leads to political incumbents allocating goods to communites with greater economic needs versus those of political support.

How does transparency affect distributional politics? We theorize that it conditions how officials choose recipient communities, compelling them to allocate to needy communities rather than to core supporters. We present the results of a field experiment in which 333 elected incumbent councillors in Malawi made real and meaningful decisions about the allocation of NGO-provided development goods to schools in their constituency. Prior to allocating goods, half of the incumbents were informed that letters about their decisions would be sent to local development oversight committees. We find that this transparency treatment caused incumbents to allocate goods to recipient school communities with greater economic need. They were also less likely to allocate to schools with strong political support. To our knowledge, this is the first experimental evaluation of theoretical claims about the role of transparency in distributional politics using in-office elected leaders as participants and observing real distributional decisions.

44

AidData Working Paper

A Primer on Geospatial Impact Evaluation Methods, Tools, and Applications

2017-09-01

Ariel BenYishay, Daniel Runfola, Rachel Trichler, Carrie Dolan, Seth Goodman, Bradley Parks, Jeffery Tanner, Silke Heuser, Geeta Batra, Anupam Anand

A review of the advantages, disadvantages, and use cases of GIEs across countries, sectors, interventions, and development organizations.

AidData Working Paper

A Primer on Geospatial Impact Evaluation Methods, Tools, and Applications

2017-09-01

Ariel BenYishay, Daniel Runfola, Rachel Trichler, Carrie Dolan, Seth Goodman, Bradley Parks, Jeffery Tanner, Silke Heuser, Geeta Batra, Anupam Anand

A review of the advantages, disadvantages, and use cases of GIEs across countries, sectors, interventions, and development organizations.

AidData Working Paper

A Primer on Geospatial Impact Evaluation Methods, Tools, and Applications

2017-09-01

Ariel BenYishay, Daniel Runfola, Rachel Trichler, Carrie Dolan, Seth Goodman, Bradley Parks, Jeffery Tanner, Silke Heuser, Geeta Batra, Anupam Anand

A review of the advantages, disadvantages, and use cases of GIEs across countries, sectors, interventions, and development organizations.

The growing availability of georeferenced data on development investments and outcomes has opened up new opportunities to understand what works, what doesn’t, and why at a substantially lower time and financial cost. When precisely georeferenced intervention data are fused with in-situ and remotely sensed data on outcomes like poverty, child mortality, deforestation, and governance, quasi-experimental methods of causal inference can be used to control for potential confounds and omitted variables at fine geographic levels. We introduce these geospatial impact evaluation (GIE) methods, review their advantages and disadvantages, and describe their relevance and use across countries, sectors, intervention types, and development organizations.

43

AidData Working Paper

BRICS and Foreign Aid

2017-08-01

Gerda Asmus, Andreas Fuchs, Angelika Müller

An overview of the small but growing literature on BRICS donors, who show considerable variation in their bilateral foreign aid activities.

AidData Working Paper

BRICS and Foreign Aid

2017-08-01

Gerda Asmus, Andreas Fuchs, Angelika Müller

An overview of the small but growing literature on BRICS donors, who show considerable variation in their bilateral foreign aid activities.

AidData Working Paper

BRICS and Foreign Aid

2017-08-01

Gerda Asmus, Andreas Fuchs, Angelika Müller

An overview of the small but growing literature on BRICS donors, who show considerable variation in their bilateral foreign aid activities.

This paper provides an overview of the small but growing literature on the bilateral foreign aid activities carried out by the five BRICS countries. While these so-called emerging donors are steadily gaining prominence in international development, they are certainly not new to the field, with foreign aid programs dating back as far as the 1950s. The recent increase in both the size and scope of their development activities around the globe is regarded by some as a threat to the international aid architecture dominated by the United States and its allies in Western Europe and Japan. What do we know about the size, scope and institutional design of the BRICS countries’ aid activities? What can we learn about these donors’ aid motives by analyzing the pattern of their aid recipients and focal sectors? Does the existing qualitative and quantitative literature allow us to draw conclusions about the effects of BRICS aid on economic growth, other development outcomes, governance and conflict in recipient countries? Moreover, how will BRICS aid affect the DAC-centered international aid architecture and the way the so-called traditional donors provide aid? While our examination of existing scholarly work allows us to draw some tentative conclusions, it also underscores the considerable variation BRICS donors show in their aid approaches; they rarely act as a group in international development cooperation. We also highlight the major avenues and challenges for future research.

42

AidData Working Paper

Aid and Growth in Malawi

2017-07-01

Daniel Chris Khomba, Alex Trew

Do foreign aid flows impact local growth? Researchers find that aid flows cause higher growth and relocate economic activity across space.

AidData Working Paper

Aid and Growth in Malawi

2017-07-01

Daniel Chris Khomba, Alex Trew

Do foreign aid flows impact local growth? Researchers find that aid flows cause higher growth and relocate economic activity across space.

AidData Working Paper

Aid and Growth in Malawi

2017-07-01

Daniel Chris Khomba, Alex Trew

Do foreign aid flows impact local growth? Researchers find that aid flows cause higher growth and relocate economic activity across space.

We study the impact on local growth of foreign aid flows in Malawi over the period 2000–13. Using household surveys, we show that growth in light density is a good proxy for growth in household consumption. To isolate a causal impact of aid on growth, we employ two exogenous determinants of within-country disbursement: First, the ethnic affinity of a constituency or district with the sitting President; second, the portion of Parliamentarians in a constituency or district that defect to the ruling party. Using these instruments, alone or together, we identify a robust and quantitatively significant role for aid flows in causing higher growth in light density at both constituency and district level. Constituency level regressions suggest a higher effect than district level regressions, suggesting that aid flows cause a relocation of economic activity across space. We find a hump-shaped growth response over the course of three years. Bilateral aid appears to be better in causing growth than multilateral aid while grants have more impact than loans.

41

AidData Working Paper

Escaping the Valley of Disengagement: Two Field Experiments on Motivating Citizens to Monitor Public Goods

2017-06-01

Mark T. Buntaine, Daniel L. Nielson, Jacob T. Skaggs

Governments cannot provide public goods effectively when they lack information about their delivery.

AidData Working Paper

Escaping the Valley of Disengagement: Two Field Experiments on Motivating Citizens to Monitor Public Goods

2017-06-01

Mark T. Buntaine, Daniel L. Nielson, Jacob T. Skaggs

Governments cannot provide public goods effectively when they lack information about their delivery.

AidData Working Paper

Escaping the Valley of Disengagement: Two Field Experiments on Motivating Citizens to Monitor Public Goods

2017-06-01

Mark T. Buntaine, Daniel L. Nielson, Jacob T. Skaggs

Governments cannot provide public goods effectively when they lack information about their delivery.

Governments cannot provide public goods effectively when they lack information about their delivery. Citizens, for their part, experience deficient or absent public services, but they lack incentives to provide monitoring when they do not expect governments to be responsive to their concerns. Over time, this reinforcing cycle creates what we term the valley of disengagement. We investigate how to activate and sustain citizen engagement in governance given the challenges posed by this vicious cycle. In two field experiments in Kampala, Uganda, we recruited citizens to report on solid waste services to the municipal government. We find that neighbors' and leaders' nominations of reporters and public announcements about reporters' activity do not increase citizen monitoring. However, government responsiveness to reporters boosts participation over several months, highlighting the critical role of timely and targeted responsiveness by governments for sustaining citizen engagement.

40

AidData Working Paper

When Do Global Performance Assessments Influence Policy Behavior? Micro-Evidence from the 2014 Reform Efforts Survey

2017-05-02

Bradley C. Parks, Takaaki Masaki

AidData Working Paper

When Do Global Performance Assessments Influence Policy Behavior? Micro-Evidence from the 2014 Reform Efforts Survey

2017-05-02

Bradley C. Parks, Takaaki Masaki

AidData Working Paper

When Do Global Performance Assessments Influence Policy Behavior? Micro-Evidence from the 2014 Reform Efforts Survey

2017-05-02

Bradley C. Parks, Takaaki Masaki

Scholars and policymakers generally agree that global performance assessments (GPAs) can influence the policy priorities and actions of public sector decision-makers. However, there is little systematic evidence about the conditions under which GPAs — and performance assessments, more generally — instigate changes in state behavior. There is also a lack of understanding about the causal mechanisms through which GPAs and other types of performance assessments facilitate policy changes. We seek to close this evidence gap by leveraging a survey of 1,788 host government officials that provides comparative data on the agenda-setting influence and reform design influence of more than 100 government performance assessments. We argue that GPAs function as signaling devices that provide credibility assurances to foreign investors and donors. However, the net benefits of credibility signaling to these external actors must be sufficiently large and certain for policymakers in assessed countries to recalibrate their domestic reform priorities and efforts. We posit that this condition is met when the supplier of a cross-country performance assessment allows assessed governments to participate in the assessment process. Using a multilevel linear model to account for the hierarchical structure of our survey data, we find evidence that performance assessments yield greater policy influence when they make an explicit comparison of government performance across countries and allow assessed governments to participate in the assessment process. This finding is robust to a variety of tests, including country-fixed and respondent-fixed effects.

39

AidData Working Paper

Development Aid and Infant Mortality

2017-05-01

Andreas Kotsadam, Gudrun Østby, Siri Aas Rustad, Andreas Forø Tollefsen, Henrik Urdal

A team of researchers undertake what may be the first systematic attempt to study how DA affects infant mortality at the subnational level.

AidData Working Paper

Development Aid and Infant Mortality

2017-05-01

Andreas Kotsadam, Gudrun Østby, Siri Aas Rustad, Andreas Forø Tollefsen, Henrik Urdal

A team of researchers undertake what may be the first systematic attempt to study how DA affects infant mortality at the subnational level.

AidData Working Paper

Development Aid and Infant Mortality

2017-05-01

Andreas Kotsadam, Gudrun Østby, Siri Aas Rustad, Andreas Forø Tollefsen, Henrik Urdal

A team of researchers undertake what may be the first systematic attempt to study how DA affects infant mortality at the subnational level.

While there is a vast literature studying the effects of development aid (DA) on economic growth, there are far fewer comparative studies addressing how aid affects health outcomes. Furthermore, while much attention has been paid to country-level effects of aid, there is a clear knowledge gap in the literature when it comes to systematic studies of aid effectiveness below the country-level. Addressing this gap, we undertake what we believe is the first systematic attempt to study how DA affects infant mortality at the subnational level. We match new geographic aid data from the AidData on the precise location, type, and time frame of bilateral and multilateral aid projects in Nigeria with available georeferenced survey data from five Nigerian Demographic and Health Surveys, covering information on 294,835 births in the period 1953-2013. Using quasi-experimental approaches, with mother fixed-effects, we are able to control for a vast number of unobserved factors that may otherwise be spuriously correlated with both infant mortality and DA. The results indicate very clearly that geographical proximity to aid projects reduces neonatal, infant, and child mortality. Moreover, aid contributes to reduce systematic inter-group, or horizontal, inequalities in a setting where such differences loom large. In particular, we find that aid more effectively reduces infant mortality in less privileged groups like children of Muslim women, and children living in rural, and in Muslim-dominated areas. Finally, there is evidence that aid projects are established in areas that on average have lower infant mortality than non-aid locations, suggesting that there are biases resulting in aid not necessarily reaching those populations in greatest need.

38

AidData Working Paper

geoSIMEX: A Generalized Approach To Modeling Spatial Imprecision

2017-04-01

Daniel Runfola, Robert Marty, Seth Goodman, Michael Lefew, Ariel BenYishay

A flexible approach - geoSIMEX - can provide parameter and error estimates while adjusting for spatial imprecision.

AidData Working Paper

geoSIMEX: A Generalized Approach To Modeling Spatial Imprecision

2017-04-01

Daniel Runfola, Robert Marty, Seth Goodman, Michael Lefew, Ariel BenYishay

A flexible approach - geoSIMEX - can provide parameter and error estimates while adjusting for spatial imprecision.

AidData Working Paper

geoSIMEX: A Generalized Approach To Modeling Spatial Imprecision

2017-04-01

Daniel Runfola, Robert Marty, Seth Goodman, Michael Lefew, Ariel BenYishay

A flexible approach - geoSIMEX - can provide parameter and error estimates while adjusting for spatial imprecision.

There is a large and growing set of literature examining how different classes of models can integrate information on spatial imprecision in order to more accurately reflect available data. Here, we present a flexible approach - geoSIMEX - which can provide parameter and error estimates while adjusting for spatial imprecision. We illustrate this approach through a case study leveraging a novel, publically available dataset recording the location of Chinese aid in Southeast Asia at varying levels of precision. Using a difference-in-difference modeling approach, we integrate Chinese aid information with satellite derived data on vegetation (NDVI) to examine if Chinese aid has caused an increase or decrease in vegetation. Following multiple approaches which do not incorporate spatial imprecision, we find that Chinese aid had a negative impact on vegetation; once spatial imprecision was incorporated into our estimates through the geoSIMEX procedure no evidence of impact is found.

37

AidData Working Paper

Targeted Foreign Aid and International Migration: Is Development Promotion an Effective Immigration Policy?

2017-03-03

Jonas Gamso, Farhod Yuldashev

Findings indicate that governance aid is accompanied by reductions in the emigration rates of developing countries.

AidData Working Paper

Targeted Foreign Aid and International Migration: Is Development Promotion an Effective Immigration Policy?

2017-03-03

Jonas Gamso, Farhod Yuldashev

Findings indicate that governance aid is accompanied by reductions in the emigration rates of developing countries.

AidData Working Paper

Targeted Foreign Aid and International Migration: Is Development Promotion an Effective Immigration Policy?

2017-03-03

Jonas Gamso, Farhod Yuldashev

Findings indicate that governance aid is accompanied by reductions in the emigration rates of developing countries.

Immigration from poor countries continues to be one of the most salient concerns among voters and politicians in the United States and in countries of Western Europe. Faced with the failure of traditional immigration policies, scholars and policymakers in these high-income countries are increasingly turning towards foreign aid to reduce migrant inflows. This approach reflects the conventional wisdom that individuals in the Developing World migrate to countries of the Global North in an effort to escape poverty, underdevelopment, and other problems at home. Leaders representing high income countries believe that aid can improve the well-being of would-be migrants, thereby deterring them from uprooting their lives and migrating abroad. However, there remains little consensus as to whether foreign aid actually reduces migration, as only a few studies have tackled this subject and they have produced contradictory results. We suspect that this literature has failed to produce definitive findings due to its tendency to treat all aid the same way. Therefore, we examine the distinct effects of three types of aid on emigration patterns: governance aid, economic aid, and social aid. To do so, we analyze a panel of 101 low and middle income countries over a time series spanning 25 years (1985-2010). Our findings indicate that governance aid is accompanied by reductions in the emigration rates of developing countries, whereas other types of aid have no discernible relationship to emigration. These results suggest that some, but not all, types of foreign aid can act as an effective and development-friendly immigration policy.

36

AidData Working Paper

Foreign Aid and Growth at the Subnational Level

2017-03-02

Andrea Civelli, Andrew Horowitz, Arilton Teixeira

Analysis finds statistically significant positive and persistent effects of aid shocks on nighttime luminosity.

AidData Working Paper

Foreign Aid and Growth at the Subnational Level

2017-03-02

Andrea Civelli, Andrew Horowitz, Arilton Teixeira

Analysis finds statistically significant positive and persistent effects of aid shocks on nighttime luminosity.

AidData Working Paper

Foreign Aid and Growth at the Subnational Level

2017-03-02

Andrea Civelli, Andrew Horowitz, Arilton Teixeira

Analysis finds statistically significant positive and persistent effects of aid shocks on nighttime luminosity.

We develop a measurement strategy for the impact of foreign aid based on a regional panel vectorautoregressive model (P-VAR). We illustrate the strategy using Ugandan districts. Data for the regional units (ADM2) is assembled combining satellite sources for socio-economic activity, geo-located aid disbursements, and traditional household surveys. We find statistically significant positive and persistent effects of aid shocks on nighttime luminosity. Mapping nightlights to economic activity, the results suggest that the economic magnitude of these effects is small, but significant – with a multiplier between 2 and 3 in the medium to long-run. The P-VAR addresses endogeneity concerns associated with non-random aid assignment.

35

AidData Working Paper

Impact of Mass Bed Net Distribution Progams on Politics

2017-03-01

Kevin Croke

Bed net distribution results in large, statistically significant improvements in the approval levels of political leaders.

AidData Working Paper

Impact of Mass Bed Net Distribution Progams on Politics

2017-03-01

Kevin Croke

Bed net distribution results in large, statistically significant improvements in the approval levels of political leaders.

AidData Working Paper

Impact of Mass Bed Net Distribution Progams on Politics

2017-03-01

Kevin Croke

Bed net distribution results in large, statistically significant improvements in the approval levels of political leaders.

Functioning democracy requires that citizens reward politicians who deliver benefits, yet there is surprisingly little causal evidence of changes in citizen views or behavior in response to specific government programs. I examine this question in Tanzania, which has recently implemented large health programs targeting diseases such as HIV/AIDS and malaria. Tanzania’s recent national anti-malaria campaigns took place concurrently with a national household surveys, which enables a regression discontinuity design based on interview date to estimate the effect of these programs on the popularity of local politicians. Bed net distribution results in large, statistically significant improvements in the approval levels of political leaders, especially in malaria endemic areas. Effects are largest shortly after program implementation, but smaller effects persist for up to six months. These findings suggest that citizens update their evaluation of politicians in response to programs, especially when these services address important problems, and that the effects decay in magnitude, but not completely.

34

AidData Working Paper

Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia

2017-02-01

Jonas B. Bunte, Harsh Desai, Kanio Gbala, Brad Parks, Daniel Miller Runfola

Results suggest that, in general, natural resource concessions improve local economic growth outcomes.

AidData Working Paper

Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia

2017-02-01

Jonas B. Bunte, Harsh Desai, Kanio Gbala, Brad Parks, Daniel Miller Runfola

Results suggest that, in general, natural resource concessions improve local economic growth outcomes.

AidData Working Paper

Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia

2017-02-01

Jonas B. Bunte, Harsh Desai, Kanio Gbala, Brad Parks, Daniel Miller Runfola

Results suggest that, in general, natural resource concessions improve local economic growth outcomes.

The Ellen Johnson-Sirleaf administration, which came to power in 2006 after the end of a nearly fifteen year civil war, has made foreign direct investment (FDI) the centerpiece of its growth and development strategy. However, unlike other governments that have sought to benefit from FDI through technology and knowledge transfers, the Liberian authorities have pursued a strategy of requiring that investors provide public goods in specific geographic areas. It is not clear if this strategy, which is designed to set in motion agglomeration processes, improves local economic growth outcomes. This paper presents first-of-its kind, quasi-experimental evidence on the economic impacts of natural resource sector FDI. We first construct a new dataset of more than 550 sub-nationally georeferenced natural resource concessions that the Liberian government granted to investors between 2004 and 2015. We then merge these georeferenced investment data with survey- and satellite-based outcome and covariate data at the 1km x 1km grid cell level. We use remotely sensed data on nighttime light to measure local economic growth and propensity score matching methods to compare growth in otherwise similar locations with and without FDI. Our results suggest that, in general, natural resource concessions improve local economic growth outcomes. However, there is important variation across different types of concessions and concessionaires. Mining concessions outperform agricultural concessions, and concessions granted to Chinese investors outperform concessions granted to U.S. investors.

33

AidData Working Paper

Chinese Aid and Local Corruption

2016-12-02

Ann-Sofie Isaksson and Andreas Kotsadam

Empirical results consistently indicate more widespread local corruption around active Chinese project sites

AidData Working Paper

Chinese Aid and Local Corruption

2016-12-02

Ann-Sofie Isaksson and Andreas Kotsadam

Empirical results consistently indicate more widespread local corruption around active Chinese project sites

AidData Working Paper

Chinese Aid and Local Corruption

2016-12-02

Ann-Sofie Isaksson and Andreas Kotsadam

Empirical results consistently indicate more widespread local corruption around active Chinese project sites

Considering the mounting criticisms concerning Chinese aid practices, the present paper investigates whether Chinese aid projects fuel local-level corruption in Africa. To this end, we geographically match a new geo-referenced dataset on the subnational allocation of Chinese development finance projects to Africa over the 2000-2012 period with 98,449 respondents from four Afrobarometer survey waves across 29 African countries. By comparing the corruption experiences of individuals who live near a site where a Chinese project is being implemented at the time of the interview to those of individuals living close to a site where a Chinese project will be initiated but where implementation had not yet started at the time of the interview, we control for unobservable time-invariant characteristics that may influence the selection of project sites. The empirical results consistently indicate more widespread local corruption around active Chinese project sites. The effect, which lingers after the project implementation period, is seemingly not driven by an increase in economic activity, but rather seems to signify that the Chinese presence impacts norms. Moreover, China stands out from the World Bank and other bilateral donors in this respect. In particular, whereas the results indicate that Chinese aid projects fuel local corruption but have no observable impact on local economic activity.

32

AidData Working Paper

Forest Cover Impacts of Chinese Development Projects in Ecologically Sensitive Areas

2016-12-01

Ariel BenYishay, Bradley Parks, Daniel Runfola, Rachel Trichler

Chinese-funded infrastructure projects need not lead to widespread environmental damage when nearby ecosystems are appropriately protected.

AidData Working Paper

Forest Cover Impacts of Chinese Development Projects in Ecologically Sensitive Areas

2016-12-01

Ariel BenYishay, Bradley Parks, Daniel Runfola, Rachel Trichler

Chinese-funded infrastructure projects need not lead to widespread environmental damage when nearby ecosystems are appropriately protected.

AidData Working Paper

Forest Cover Impacts of Chinese Development Projects in Ecologically Sensitive Areas

2016-12-01

Ariel BenYishay, Bradley Parks, Daniel Runfola, Rachel Trichler

Chinese-funded infrastructure projects need not lead to widespread environmental damage when nearby ecosystems are appropriately protected.

What are the conservation impacts of Chinese development activities in ecological hotspots? We generate and sub-nationally geo-reference a dataset of official Chinese development activities implemented between 2000 and 2014 in the Tropical Andes, the Great Lakes region of Africa, and the Mekong Delta. We then merge these project data with a long series of high-resolution satellite data in order to evaluate their impacts on forest cover. A difference-in-differences estimation strategy is used to identify changes in tree cover that have resulted from exposure to Chinese-funded infrastructure projects in Cambodia and Tanzania. We find that in Cambodia, these projects slowed forest loss, while Tanzania saw faster rates of forest loss in areas near active projects. However, these average results mask heterogeneous treatment effects across different types of forest governance regimes. In Cambodia, where large tracts of forested land – including concessions and plantations – have been granted to natural resource sector investors and the enforcement of environmental laws and regulations is exceptionally weak, we find that standing forests in plantation areas were negatively impacted by nearby Chinese-funded infrastructure projects. In Tanzania, where there is a minimally viable protected areas network, we find that areas under formal protection experienced little or no deforestation from these Chinese-funded projects. These effects hold even after we account for economic development patterns, as proxied by nighttime lights. We conclude that Chinese-funded infrastructure projects need not lead to widespread environmental damage when nearby ecosystems are appropriately protected, and domestic environmental governance plays a crucial role in shaping forest cover outcomes.

31

AidData Working Paper

Fueling Conflict? (De)Escalation and Bilateral Aid

2016-11-02

Richard Bluhm, Martin Gassebner, Sarah Langlotz, Paul Schaudt

Receiving bilateral aid raises the chances of escalating from small conflict to armed conflict, but it not in truly peaceful countries.

AidData Working Paper

Fueling Conflict? (De)Escalation and Bilateral Aid

2016-11-02

Richard Bluhm, Martin Gassebner, Sarah Langlotz, Paul Schaudt

Receiving bilateral aid raises the chances of escalating from small conflict to armed conflict, but it not in truly peaceful countries.

AidData Working Paper

Fueling Conflict? (De)Escalation and Bilateral Aid

2016-11-02

Richard Bluhm, Martin Gassebner, Sarah Langlotz, Paul Schaudt

Receiving bilateral aid raises the chances of escalating from small conflict to armed conflict, but it not in truly peaceful countries.

This paper studies the effects of bilateral foreign aid on conflict escalation and de-escalation. We make three major contributions. First, we combine data on civil wars with data on low level conflicts in a new ordinal measure capturing the two-sided and multifaceted nature of conflict. Second, we develop a novel empirical framework. We propose a dynamic ordered probit estimator that allows for unobserved heterogeneity and corrects for endogeneity. Third, we identify the causal effect of foreign aid on conflict by predicting bilateral aid flows based on electoral outcomes of donor countries that are exogenous to recipients. We establish that the effect of foreign aid on the various transition probabilities is heterogeneous and can be substantial. Receiving bilateral aid raises the chances of escalating from small conflict to armed conflict, but we find no evidence that aid ignites conflict in truly peaceful countries.

30

AidData Working Paper

Aid Management, Trust, and Development Policy Influence

2016-11-01

Bradley C. Parks, Takaaki Masaki, Jörg Faust, Stefan Leiderer

Development agencies can amplify their policy influence by entrusting their counterpart governments with aid management responsibilities.

AidData Working Paper

Aid Management, Trust, and Development Policy Influence

2016-11-01

Bradley C. Parks, Takaaki Masaki, Jörg Faust, Stefan Leiderer

Development agencies can amplify their policy influence by entrusting their counterpart governments with aid management responsibilities.

AidData Working Paper

Aid Management, Trust, and Development Policy Influence

2016-11-01

Bradley C. Parks, Takaaki Masaki, Jörg Faust, Stefan Leiderer

Development agencies can amplify their policy influence by entrusting their counterpart governments with aid management responsibilities.

Bilateral and multilateral development agencies spend a great deal of time, money, and effort trying to shape the reform priorities and processes of their counterpart countries. However, the means by which development agencies can achieve these ends are poorly understood. This article draws upon the first-hand experiences and observations of more than 1,000 public sector officials from 70 low- and middle-income countries to better understand which external sources of reform advice and assistance are most and least useful to public sector decision-makers—and why. We find that donors more effectively shape reform priorities when they choose to deliver their funding through the public financial management systems of counterpart countries, rather than using channels of aid delivery—in particular, technical assistance programs—that bypass host governments and signal a lack of trust in the motivations and capabilities of the local authorities. This finding holds true even after controlling for institutional quality, or the trustworthiness of public sector institutions, in aid-receiving countries. As such, our results call attention to the fact that development agencies can amplify their policy influence by entrusting their counterpart governments with aid management responsibilities.

29

AidData Working Paper

Repression and Foreign Aid in Autocracies: Exploiting Debt Relief Negotiations in Post-Cold War Africa

2016-07-02

Brett L. Carter

When the threat of financial sanction is credible, Western donors have reduced the odds of repression in Africa’s post-Cold War autocracies.

AidData Working Paper

Repression and Foreign Aid in Autocracies: Exploiting Debt Relief Negotiations in Post-Cold War Africa

2016-07-02

Brett L. Carter

When the threat of financial sanction is credible, Western donors have reduced the odds of repression in Africa’s post-Cold War autocracies.

AidData Working Paper

Repression and Foreign Aid in Autocracies: Exploiting Debt Relief Negotiations in Post-Cold War Africa

2016-07-02

Brett L. Carter

When the threat of financial sanction is credible, Western donors have reduced the odds of repression in Africa’s post-Cold War autocracies.

Does dependence on development aid from Western sources constrain the use of repression among autocrats? To answer this question, I employ a novel dataset of Africa’s post-Cold War autocracies in which the unit of analysis is the country-day rather than the country-year. This day-level dataset enables me to address three potential sources of bias that may obscure the relationship between Western aid dependence and repression. When the threat of financial sanction is credible, I find, Western donors have reduced the daily odds of repression in Africa’s post-Cold War autocracies. Western aid dependence is constraining even during periods of sustained popular protests. The results suggest that modern autocrats who rely on Western donors for financial support lack the easy recourse to repression enjoyed by their Cold War era predecessors.

28

AidData Working Paper

Do Domestic Politics Shape U.S. Influence in the World Bank?

2016-07-01

Erasmus Kersting, Christopher Kilby

Reexamining four empirical studies of the World Bank, U.S. influence is driven by the years in which the U.S. government was divided.

AidData Working Paper

Do Domestic Politics Shape U.S. Influence in the World Bank?

2016-07-01

Erasmus Kersting, Christopher Kilby

Reexamining four empirical studies of the World Bank, U.S. influence is driven by the years in which the U.S. government was divided.

AidData Working Paper

Do Domestic Politics Shape U.S. Influence in the World Bank?

2016-07-01

Erasmus Kersting, Christopher Kilby

Reexamining four empirical studies of the World Bank, U.S. influence is driven by the years in which the U.S. government was divided.

This paper investigates whether U.S. presidential administrations choose to exert more influence over international financial institutions when they have less control over bilateral aid because of a divided U.S. government. Reexamining four empirical studies of the World Bank, we demonstrate that findings of U.S. influence are driven by the years in which the U.S. government was divided. This provides a richer picture of when and why the U.S. exerts influence in multilateral settings and an alternate explanation to persistent questions about the role of international organizations in the political economy.

27

AidData Working Paper

Tangible Information and Citizen Empowerment: Identification Cards and Food Subsidy Programs in Indonesia

2016-06-01

Abhijit Banerjee, Rema Hanna, Jordan Kyle, Benjamin A. Olken, Sudarno Sumarto

On net, beneficiaries received 26 percent more subsidy in villages targeted with an information program.

AidData Working Paper

Tangible Information and Citizen Empowerment: Identification Cards and Food Subsidy Programs in Indonesia

2016-06-01

Abhijit Banerjee, Rema Hanna, Jordan Kyle, Benjamin A. Olken, Sudarno Sumarto

On net, beneficiaries received 26 percent more subsidy in villages targeted with an information program.

AidData Working Paper

Tangible Information and Citizen Empowerment: Identification Cards and Food Subsidy Programs in Indonesia

2016-06-01

Abhijit Banerjee, Rema Hanna, Jordan Kyle, Benjamin A. Olken, Sudarno Sumarto

On net, beneficiaries received 26 percent more subsidy in villages targeted with an information program.

Local officials in developing countries do not always implement programs as the central government intends, often due to corruption. Directly informing citizens about their rights may result in citizens receiving more, but whether this occurs in practice is ultimately an empirical question. In an experiment in over 550 villages, we test whether mailing cards with program information to targeted beneficiaries increases the subsidy they receive from a subsidized rice program. On net, beneficiaries received 26 percent more subsidy in card villages. Ineligible households received no less, so this represents substantially lower leakage.

26

AidData Working Paper

The Dragon's Curse? China, the World Bank, and Perceptions of Corruption in Tanzania

2016-05-04

Gina Kelly, Samuel Brazys, Johan A. Elkink

The paper finds a strong association between the location of a larger number of Chinese aid projects and higher perceptions of corruption.

AidData Working Paper

The Dragon's Curse? China, the World Bank, and Perceptions of Corruption in Tanzania

2016-05-04

Gina Kelly, Samuel Brazys, Johan A. Elkink

The paper finds a strong association between the location of a larger number of Chinese aid projects and higher perceptions of corruption.

AidData Working Paper

The Dragon's Curse? China, the World Bank, and Perceptions of Corruption in Tanzania

2016-05-04

Gina Kelly, Samuel Brazys, Johan A. Elkink

The paper finds a strong association between the location of a larger number of Chinese aid projects and higher perceptions of corruption.

The rise of China as a “non-traditional” development partner has been one of the most important phenomenon in the field over the past decade but the implications of this emergence are not yet fully understood. The lack of transparency in Chinese aid programs, coupled with an apparently uninterested stance towards the governance implications of development, lead many to wonder if Chinese engagement will contribute to or undermine development efforts, particularly those of traditional donors such as the World Bank. This paper takes advantage of recent innovations in development aid data to investigate the spatial relationship between Chinese aid, World Bank aid and citizen perceptions of corruption in Tanzania. The paper finds a strong association between the location of a larger number of Chinese aid projects and higher perceptions of corruption. The paper also finds evidence that the presence of a large number of Chinese aid projects may undermine the “beneficial” relationship between World Bank aid projects and perceptions of corruption. However, both of these findings are qualified by the inability to disentangle the association with these aid projects from the association with similarly co-located natural resources, which may be an alternative driver of corruption via the “resource curse”.

25

AidData Working Paper

What Determines Earmarked Funding to International Development Organizations?

2016-05-03

Vera Z. Eichenauer, Bernhard Reinsberg

Earmarked aid is associated with different donor- and recipient-level factors than traditional or ‘pure’ bilateral aid.

AidData Working Paper

What Determines Earmarked Funding to International Development Organizations?

2016-05-03

Vera Z. Eichenauer, Bernhard Reinsberg

Earmarked aid is associated with different donor- and recipient-level factors than traditional or ‘pure’ bilateral aid.

AidData Working Paper

What Determines Earmarked Funding to International Development Organizations?

2016-05-03

Vera Z. Eichenauer, Bernhard Reinsberg

Earmarked aid is associated with different donor- and recipient-level factors than traditional or ‘pure’ bilateral aid.

Earmarked aid to international development organizations has quadrupled over the last two decades and now represents almost twenty percent of total aid. This paper introduces a new dataset on earmarked aid, which alternatively has been referred to as multi-bi, restricted, non-core or trust fund aid. The data makes it possible to track the rise of the new aid channel over an extended period of time and in greater detail regarding, e.g., the implementing multilateral organizations. The data include more than 100,000 earmarked projects of 23 OECD donors to 290 multilateral institutions from 1990 to 2012. We graphically illustrate the distribution and patterns of this new aid channel for all actors involved, namely donor governments and their aid-providing agencies, multilateral organizations, and recipient countries, and highlight promising avenues for further research. In a first empirical application of the data, we analyze donors’ heterogeneous use of earmarked aid, and test three lines of argument for the provision of earmarked aid: official donor motives regarding specific recipient needs, public opinion in donor countries, and ‘market-oriented’ donor economies’ use of earmarked aid to ‘bypass’ recipient countries with weak governance. We show that earmarked aid is associated with different donor- and recipient-level factors than traditional or ‘pure’ bilateral aid.

24

AidData Working Paper

Foreign Aid and the Intensity of Violent Armed Conflict

2016-05-02

Daniel Strandow, Michael G. Findley, Joseph K. Young

Multiple measures of funding concentration are associated with increased military fatalities, but not with civilian fatalities.

AidData Working Paper

Foreign Aid and the Intensity of Violent Armed Conflict

2016-05-02

Daniel Strandow, Michael G. Findley, Joseph K. Young

Multiple measures of funding concentration are associated with increased military fatalities, but not with civilian fatalities.

AidData Working Paper

Foreign Aid and the Intensity of Violent Armed Conflict

2016-05-02

Daniel Strandow, Michael G. Findley, Joseph K. Young

Multiple measures of funding concentration are associated with increased military fatalities, but not with civilian fatalities.

Does foreign aid increase or decrease violence during ongoing wars? Although answers to this question are almost surely found at local levels, most research on this topic is performed at much higher levels of analysis, most notably the country level. We investigate the impact of foreign aid on the intensity of violence during ongoing armed conflict at a microlevel. We examine the influence that concentrated aid funding has on political violence within war zones that are contested among combatants. Using new geographically coded data within a matching design, we find that multiple measures of funding concentration are associated with increased military fatalities, but not with civilian fatalities.

23

AidData Working Paper

Elite and Mass Support for Foreign Aid Versus Government Programs: Experimental Evidence from Uganda

2016-05-01

Michael G. Findley, Adam S. Harris, Helen V. Milner, Daniel Nielson

Members of parliament support government programs over foreign aid, whereas citizens prefer aid over government.

AidData Working Paper

Elite and Mass Support for Foreign Aid Versus Government Programs: Experimental Evidence from Uganda

2016-05-01

Michael G. Findley, Adam S. Harris, Helen V. Milner, Daniel Nielson

Members of parliament support government programs over foreign aid, whereas citizens prefer aid over government.

AidData Working Paper

Elite and Mass Support for Foreign Aid Versus Government Programs: Experimental Evidence from Uganda

2016-05-01

Michael G. Findley, Adam S. Harris, Helen V. Milner, Daniel Nielson

Members of parliament support government programs over foreign aid, whereas citizens prefer aid over government.

Does foreign aid enable or constrain elite capture of public revenues? Building on prominent debates in the foreign aid literature, we examine whether recipient preferences are consistent with a view – called here donor control theory – that foreign donors wield substantial control over the flow of aid dollars, making elite capture more difficult and mass benefits more likely. We compare elite and mass support for foreign aid versus government spending on development projects through a survey experiment with behavioral outcomes on members of the Ugandan national parliament and a representative sample of Ugandan citizens. For two actual aid projects, we randomly assigned different funders to the projects. Significant treatment effects reveal that members of parliament support government programs over foreign aid, whereas citizens prefer aid over government. Donor control theory also implies that citizens should favor foreign aid more and elites less as their perceptions of government clientelism and corruption increase. We explore this and report on other alternative mechanisms. Effects for citizens and elites are most apparent for those perceiving significant government corruption, supporting donor control theory.

22

AidData Working Paper

Indigenous Land Rights and Deforestation: Evidence from the Brazilian Amazon

2016-04-01

Ariel BenYishay, Silke Heuser, Daniel Runfola, Rachel Trichler

Findings suggesting that indigenous land rights programs should not uniformly be justified on the basis of their forest protection.

AidData Working Paper

Indigenous Land Rights and Deforestation: Evidence from the Brazilian Amazon

2016-04-01

Ariel BenYishay, Silke Heuser, Daniel Runfola, Rachel Trichler

Findings suggesting that indigenous land rights programs should not uniformly be justified on the basis of their forest protection.

AidData Working Paper

Indigenous Land Rights and Deforestation: Evidence from the Brazilian Amazon

2016-04-01

Ariel BenYishay, Silke Heuser, Daniel Runfola, Rachel Trichler

Findings suggesting that indigenous land rights programs should not uniformly be justified on the basis of their forest protection.

Concerns over the expropriation of and encroachment on indigenous communities’ lands have led to greater formalization of these communities’ rights in a number of developing countries. We study whether formalization of indigenous communities’ land rights affects the rate of deforestation in both the short and medium terms. Beginning in 1995, the Government of Brazil formalized the rights of several hundred indigenous communities whose lands cover more than 40 million hectares in the Amazon region and provided support for these rights’ enforcement. We study the program’s impacts using a long time-series of satellite-based forest cover data. Using both matched samples of treated and comparison communities and plausibly exogenous variation in the timing of formalization, we find no effect of these protections on satellite-based greenness measures. This is true even for communities that received support for surveillance and enforcement of these rights. Notably, we observe low counterfactual rates of deforestation on communities’ lands between 1982 and 2014, suggesting that indigenous land rights programs should not uniformly be justified on the basis of their forest protection, at least in the medium term.

21

AidData Working Paper

Putting Money to Mouths: Rewarding and Punishing Human Rights Behaviors

2016-03-01

Darren Hawkins, Jay Goodliffe

Recipients who become more like donors get significant increases in aid; recipients already similar to donors get large decreases in aid.

AidData Working Paper

Putting Money to Mouths: Rewarding and Punishing Human Rights Behaviors

2016-03-01

Darren Hawkins, Jay Goodliffe

Recipients who become more like donors get significant increases in aid; recipients already similar to donors get large decreases in aid.

AidData Working Paper

Putting Money to Mouths: Rewarding and Punishing Human Rights Behaviors

2016-03-01

Darren Hawkins, Jay Goodliffe

Recipients who become more like donors get significant increases in aid; recipients already similar to donors get large decreases in aid.

Do foreign aid donors reward recipients for good human rights and democracy records? In contrast to previous studies, we argue that donor states are interested in reproduction, influencing recipient states to adopt domestic practices similar to their own. This theory of donor behavior produces different hypotheses than those previously tested. In particular, we expect that aid donors will reward changes in a recipient’s level of democracy or respect for human rights that bring the recipient closer to the donor. Once recipients become more similar to donors, however, donor states allocate their resources away from those similar states. This is because donors prefer to utilize scarce resources to reward recipients who are actively changing in ways that bring them closer to donors. We find that recipients who change to become more like donors receive significant increases in aid while recipients who are already similar to donors receive large decreases in aid.

20

AidData Working Paper

The Impacts of World Bank Development Projects on Sites of High Biodiversity Importance

2016-02-01

Graeme M. Buchanan, Bradley C. Parks, Paul F. Donald, Brian F. O'Donnell, Daniel Runfola, John P. Swaddle, Lukasz Tracewski, Stuart H.M. Butchart

Results suggest that international development projects might be compatible with nature conservation objectives with appropriate safeguards.

AidData Working Paper

The Impacts of World Bank Development Projects on Sites of High Biodiversity Importance

2016-02-01

Graeme M. Buchanan, Bradley C. Parks, Paul F. Donald, Brian F. O'Donnell, Daniel Runfola, John P. Swaddle, Lukasz Tracewski, Stuart H.M. Butchart

Results suggest that international development projects might be compatible with nature conservation objectives with appropriate safeguards.

AidData Working Paper

The Impacts of World Bank Development Projects on Sites of High Biodiversity Importance

2016-02-01

Graeme M. Buchanan, Bradley C. Parks, Paul F. Donald, Brian F. O'Donnell, Daniel Runfola, John P. Swaddle, Lukasz Tracewski, Stuart H.M. Butchart

Results suggest that international development projects might be compatible with nature conservation objectives with appropriate safeguards.

The impacts of international development projects on biodiversity are poorly documented, yet many areas of biodiversity importance are potentially affected by such efforts. We assessed the impact of World Bank development projects on sites of biodiversity significance (Important Bird and Biodiversity Areas; IBAs) using remote sensing derived forest change data and in situ monitoring data on the conservation state (conditions), pressures (threats), and responses (conservation interventions) at these sites. IBAs <10 km from World Bank project locations had a marginally lower rate of forest loss than matched IBAs > 100 km from World Bank project locations and were subjected to lower pressures than matched sites, although there were no differences in conservation state or responses underway. Despite important caveats, these results suggest that World Bank development projects do not have a negative impact on biodiversity, and in some cases might be a benefit to biodiversity. Thus, while more work is needed, our results suggest that international development projects might be compatible with nature conservation objectives if delivered with appropriate safeguards.

19

AidData Working Paper

Are "New" Donors Challenging World Bank Conditionality?

2016-01-01

Diego Hernandez

Findings suggest new donors might be perceived as an attractive option to which the World Bank reacts by offering less restrictive credits.

AidData Working Paper

Are "New" Donors Challenging World Bank Conditionality?

2016-01-01

Diego Hernandez

Findings suggest new donors might be perceived as an attractive option to which the World Bank reacts by offering less restrictive credits.

AidData Working Paper

Are "New" Donors Challenging World Bank Conditionality?

2016-01-01

Diego Hernandez

Findings suggest new donors might be perceived as an attractive option to which the World Bank reacts by offering less restrictive credits.

This paper investigates whether World Bank conditionality is affected by the presence of “new” donors by using panel data for 54 African countries over the 1980 to 2013 period. Empirical results indicate that the World Bank delivers loans with significantly fewer conditions to recipient countries which are assisted by China. Less stringent conditionality is also observed in better off borrowers that are in addition funded by Kuwait and the United Arab Emirates, but this effect vanishes after the start of the new millennium. In contrast, World Bank conditionality is rarely affected by aid inflows from DAC donors, and when it is, conditionality is revised upwards. These findings suggest that new donors might be perceived as an attractive financial option to which the World Bank reacts by offering credits less restrictively in order to remain competitive in the loan-giving market.

18

AidData Working Paper

Sub-national Perspectives on Aid Effectiveness: Impact of Aid on Health Outcomes in Uganda

2015-12-03

Tonny Odokonyero, Alex Ijjo, Robert Marty, Tony Muhumuza, Godfrey Owot Moses

Health aid achieved an overall significant impact in reducing both disease severity and burden.

AidData Working Paper

Sub-national Perspectives on Aid Effectiveness: Impact of Aid on Health Outcomes in Uganda

2015-12-03

Tonny Odokonyero, Alex Ijjo, Robert Marty, Tony Muhumuza, Godfrey Owot Moses

Health aid achieved an overall significant impact in reducing both disease severity and burden.

AidData Working Paper

Sub-national Perspectives on Aid Effectiveness: Impact of Aid on Health Outcomes in Uganda

2015-12-03

Tonny Odokonyero, Alex Ijjo, Robert Marty, Tony Muhumuza, Godfrey Owot Moses

Health aid achieved an overall significant impact in reducing both disease severity and burden.

While the health sector has attracted significant foreign aid, evidence on the effectiveness of this support is mixed. By combining household panel data with a unique geographically-referenced foreign aid data, this paper uses a Difference-In-Differences approach to investigate the contribution of aid on key health outcomes in Uganda. We find that even though aid was not targeted to localities with the worst health conditions, health aid achieved an overall significant impact in reducing both disease severity and burden. However, the impact is most robust for disease burden compared to severity. In addition, we observe increased aid effectiveness if resources are channeled to locations that are closer to communities in need, given ease of access to health services. From a policy perspective, the results point to the need for development partners to better target aid to sub-national areas with higher disease prevalence. Moreover, aid ought to be channeled as close to intended beneficiaries as possible, thus offering additional advantage of driving the Universal Health Coverage strategy of “close to client” health system.

17

AidData Working Paper

Does Foreign Aid Fuel Trust?

2015-12-02

Alexandra D'Onofrio, Giuseppe Maggio

Individuals living in counties that got aid exhibit higher probability to trust others with respect to those living in counties with no aid.

AidData Working Paper

Does Foreign Aid Fuel Trust?

2015-12-02

Alexandra D'Onofrio, Giuseppe Maggio

Individuals living in counties that got aid exhibit higher probability to trust others with respect to those living in counties with no aid.

AidData Working Paper

Does Foreign Aid Fuel Trust?

2015-12-02

Alexandra D'Onofrio, Giuseppe Maggio

Individuals living in counties that got aid exhibit higher probability to trust others with respect to those living in counties with no aid.

What are the socioeconomic effects of foreign aid in developing countries? How effective is aid in promoting social capital? The paper explores empirically these questions and it assesses the causal effect of foreign aid on trust in Uganda. Individuals living in counties that received aid exhibit higher probability to trust others with respect to those living in counties with no aid. On the intensive margin, increase in one percent in the value of aid projects disbursed induces a similar increase in the probability of trusting other people. We use also an instrumental strategy based on the enforcement of Non Governmental Organizations (Amendment) Act and we show that the link from aid to trust is robust to different estimation strategies. Finally, we find that a channel is operating through lowering inequality. We demonstrate that foreign aid has a stronger effect in counties where there is a lower level of perceived inequality.

16

AidData Working Paper

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

2015-12-01

Simone Dietrich, Minhaj Mahmud, Matthew S. Winters

Information about U.S. aid slightly improves general perceptions of the U.S., and increases confidence in local authorities.

AidData Working Paper

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

2015-12-01

Simone Dietrich, Minhaj Mahmud, Matthew S. Winters

Information about U.S. aid slightly improves general perceptions of the U.S., and increases confidence in local authorities.

AidData Working Paper

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

2015-12-01

Simone Dietrich, Minhaj Mahmud, Matthew S. Winters

Information about U.S. aid slightly improves general perceptions of the U.S., and increases confidence in local authorities.

Foreign aid donors try to make themselves visible as the funders of development projects in order to improve citizen attitudes abroad. Do target populations receive these political communications in the intended fashion, and do they succeed in changing attitudes? Despite the widespread use of the practice, there exists little evidence about the effectiveness of this strategy. We embed an informational experiment about a U.S.-funded health project in a nationwide survey in Bangladesh. Although we find limited recognition of the USAID brand, explicit information about U.S. 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, contrary to existing arguments that foreign aid undermines domestic government legitimacy, that the information increases confidence in local authorities. These results strengthen our understanding of the efficacy of promoting donor visibility and shed light on an important debate in the area of governance that assesses the effect of external actors on government legitimacy.

15

AidData Working Paper

Apples and Dragon Fruits: The Determinants of Aid and Other Forms of State Financing From China to Africa

2015-10-01

Axel Dreher, Andreas Fuchs, Bradley Parks, Austin M. Strange, Michael J. Tierney

Results suggest Beijing’s motives may not be substantially different from those shaping the allocation of Western official finance.

AidData Working Paper

Apples and Dragon Fruits: The Determinants of Aid and Other Forms of State Financing From China to Africa

2015-10-01

Axel Dreher, Andreas Fuchs, Bradley Parks, Austin M. Strange, Michael J. Tierney

Results suggest Beijing’s motives may not be substantially different from those shaping the allocation of Western official finance.

AidData Working Paper

Apples and Dragon Fruits: The Determinants of Aid and Other Forms of State Financing From China to Africa

2015-10-01

Axel Dreher, Andreas Fuchs, Bradley Parks, Austin M. Strange, Michael J. Tierney

Results suggest Beijing’s motives may not be substantially different from those shaping the allocation of Western official finance.

Chinese “aid” is a lightning rod for criticism. Policymakers, journalists, and public intellectuals claim that Beijing is using its largesse to cement alliances with political leaders, secure access to natural resources, and create exclusive commercial opportunities for Chinese firms—all at the expense of citizens living in developing countries. We argue that much of the controversy about Chinese “aid” results from a failure to distinguish between China’s Official Development Assistance (ODA) and more commercially-oriented sources and types of state financing. Using a new database on China’s official financing commitments to Africa from 2000-2013, we find the allocation of Chinese ODA to be driven primarily by foreign policy considerations, while economic interests better explain the distribution of less concessional forms of Chinese official financing. Our results suggest Beijing’s motives may not be substantially different from those shaping the allocation of Western official finance. Our data and findings also address the need for better measures of an increasingly diverse set of non-Western financial activities that are neither well understood nor systematically tracked by the Western-led regime for international development finance.

14

AidData Working Paper

Transparency and System Support in Peru

2015-09-01

Darren Hawkins, Lucas Brook, Ian Hansen, Neal Hoopes, Taylor Rawson

We find that transparency has little impact on political attitudes, unless accompanied by either one of two conditions.

AidData Working Paper

Transparency and System Support in Peru

2015-09-01

Darren Hawkins, Lucas Brook, Ian Hansen, Neal Hoopes, Taylor Rawson

We find that transparency has little impact on political attitudes, unless accompanied by either one of two conditions.

AidData Working Paper

Transparency and System Support in Peru

2015-09-01

Darren Hawkins, Lucas Brook, Ian Hansen, Neal Hoopes, Taylor Rawson

We find that transparency has little impact on political attitudes, unless accompanied by either one of two conditions.

Powerful international actors have vigorously promoted transparency for developing countries, yet we know little about the actual effects of transparency. In this paper, we use a series of survey experiments conducted on the streets of Lima, Peru to investigate a fairly simple question: what are the effects of government transparency on attitudes regarding support for the Peruvian political system? Like many developing countries, Peru lacks much system support, making it more difficult to improve governance and democracy. We find that transparency has little impact on political attitudes, unless accompanied by either one of two conditions: the information is attributed to a credible third-party (in our case, USAID), or the information provides a frame in which the government is associate with comparative socioeconomic wellbeing. Under those conditions, Peruvians increase their approval of the national political community, the regime’s performance, regime institutions, and local government. The increases are substantively large, ranging between 6 to 11 points on our 100-point scales, or about half of a standard deviation of the variation in the control groups.

12

AidData Working Paper

'Ground-Truthing' Chinese Development Finance in Africa: Field Evidence from South Africa and Uganda

2015-08-01

Edwin Muchapondwa, Daniel Nielson, Bradley Parks, Austin M. Strange, Michael J. Tierney

Ground-truthing generally reveals close agreement between open-source data and answers to protocol questions.

AidData Working Paper

'Ground-Truthing' Chinese Development Finance in Africa: Field Evidence from South Africa and Uganda

2015-08-01

Edwin Muchapondwa, Daniel Nielson, Bradley Parks, Austin M. Strange, Michael J. Tierney

Ground-truthing generally reveals close agreement between open-source data and answers to protocol questions.

AidData Working Paper

'Ground-Truthing' Chinese Development Finance in Africa: Field Evidence from South Africa and Uganda

2015-08-01

Edwin Muchapondwa, Daniel Nielson, Bradley Parks, Austin M. Strange, Michael J. Tierney

Ground-truthing generally reveals close agreement between open-source data and answers to protocol questions.

A new methodology, Tracking Underreported Financial Flows (TUFF), leverages open-source information on development finance by non-transparent, non-Western donors. If such open-source methods prove to be valid and reliable, they can enhance our understanding of the causes and consequences of development finance from non-transparent donors including, but not limited to, China. But open-source methods face charges of inaccuracy. In this study we create and field-test a replicable ‘ground-truthing’ methodology to verify, update, and improve open-source data with in-person interviews and site visits in Uganda and South Africa. Ground-truthing generally reveals close agreement between open-source data and answers to protocol questions from informants with official roles in the Chinese-funded projects. Our findings suggest that open-source data collection, while limited in knowable ways, can provide a stronger empirical foundation for research on development finance.

11

AidData Working Paper

Doing Harm by Doing Good: The Negative Externalities of Humanitarian Aid Provision During Civil Conflict

2015-07-01

Reed M. Wood, Christopher Sullivan

Humanitarian aid may be associated with increased rebel violence but less with state violence.

AidData Working Paper

Doing Harm by Doing Good: The Negative Externalities of Humanitarian Aid Provision During Civil Conflict

2015-07-01

Reed M. Wood, Christopher Sullivan

Humanitarian aid may be associated with increased rebel violence but less with state violence.

AidData Working Paper

Doing Harm by Doing Good: The Negative Externalities of Humanitarian Aid Provision During Civil Conflict

2015-07-01

Reed M. Wood, Christopher Sullivan

Humanitarian aid may be associated with increased rebel violence but less with state violence.

Humanitarian assistance is intended to ameliorate the human costs of war by providing relief to vulnerable populations. Yet, the introduction of aid resources into conflict zones may influence subsequent violence patterns and expose intended recipients to new risks. Herein, we investigate the potential negative externalities associated with humanitarian aid. We argue that aid can create incentives for armed actors to intentionally target civilians for violence. Aid incentivizes rebel violence by providing opportunities for looting and presenting challenges to rebel authority. It potentially incentivizes state violence where it augments rebel capabilities or provides rebels a resource base. We evaluate both arguments using spatially disaggregated data on aid and conflict violence for a sample of nearly two-dozen post-Cold War African countries. The results of multiple statistical analyses provide strong support for the argument that humanitarian aid is associated with increased rebel violence but less support for the relationship between aid and state violence.

10

AidData Working Paper

Do Aid Donors Specialize and Coordinate within Recipient Countries? The Case of Malawi

2015-06-01

Peter Nunnenkamp, Albena Sotirova, Rainer Thiele

No evidence for increased aid specialization after Paris Declaration; regional division of labor among donors may have deteriorated.

AidData Working Paper

Do Aid Donors Specialize and Coordinate within Recipient Countries? The Case of Malawi

2015-06-01

Peter Nunnenkamp, Albena Sotirova, Rainer Thiele

No evidence for increased aid specialization after Paris Declaration; regional division of labor among donors may have deteriorated.

AidData Working Paper

Do Aid Donors Specialize and Coordinate within Recipient Countries? The Case of Malawi

2015-06-01

Peter Nunnenkamp, Albena Sotirova, Rainer Thiele

No evidence for increased aid specialization after Paris Declaration; regional division of labor among donors may have deteriorated.

Acknowledging that aid proliferation and a lack of coordination impair aid effectiveness, donors have repeatedly promised to specialize and better coordinate their aid activities, most notably in the Paris Declaration of 2005. We exploit geocoded aid data from Malawi to assess whether the country’s bilateral and multilateral donors have acted accordingly at the district and sector level. We do not find compelling evidence for increased aid specialization after the Paris Declaration, and the regional division of labor among donors may even have deteriorated. Our within-country evidence thus broadly corroborates what previous studies found at the national level of recipient countries.

9

AidData Working Paper

Aid and Growth at the Regional Level

2015-05-06

Axel Dreher, Steffen Lohmann

Significant correlations between aid and growth in second-level administrative regions, but no causal effects.

AidData Working Paper

Aid and Growth at the Regional Level

2015-05-06

Axel Dreher, Steffen Lohmann

Significant correlations between aid and growth in second-level administrative regions, but no causal effects.

AidData Working Paper

Aid and Growth at the Regional Level

2015-05-06

Axel Dreher, Steffen Lohmann

Significant correlations between aid and growth in second-level administrative regions, but no causal effects.

This paper brings the aid effectiveness debate to the sub-national level. We hypothesize the non-robust results regarding the effects of aid on development in the previous literature to arise due to the effects of aid being insufficiently large to measurably affect aggregate outcomes. Using geo-coded data for World Bank aid to a maximum of 2,221 first-level administrative regions (ADM1) and 54,167 second-level administrative regions (ADM2) in 130 countries over the 2000-2011 period, we test whether aid affects development, measured as nighttime light growth. Our preferred identification strategy exploits variation arising from interacting a variable that indicates whether or not a country has passed the threshold for receiving IDA’s concessional aid with a recipient region’s probability to receive aid, in a sample of 478 ADM1 regions and almost 8,400 ADM2 regions from 21 countries. Controlling for the levels of the interacted variables, the interaction provides a powerful and excludable instrument. Overall, we find significant correlations between aid and growth in ADM2 regions, but no causal effects.

8

AidData Working Paper

A Spatial Analysis of The Effect of Foreign Aid in Conflict Areas

2015-05-05

Stijn van Weezel

In contrast with the literature this study does not find a strong effect of aid on conflict.

AidData Working Paper

A Spatial Analysis of The Effect of Foreign Aid in Conflict Areas

2015-05-05

Stijn van Weezel

In contrast with the literature this study does not find a strong effect of aid on conflict.

AidData Working Paper

A Spatial Analysis of The Effect of Foreign Aid in Conflict Areas

2015-05-05

Stijn van Weezel

In contrast with the literature this study does not find a strong effect of aid on conflict.

Although most aid projects are aimed at local development, research on aid and conflict mainly uses the country-year as unit of analysis. This study examines the link between aid and conflict at the sub-national level for three African countries between 1999-2008, using a unique dataset with information on local aid projects. The data shows that in general aid is allocated relatively close to the capital whereas conflicts occur in the peripheral areas. In contrast with the literature this study does not find a strong effect of aid on conflict as the analysis provides relatively little empirical support for a link in either positive or negative direction. Some of the results do show that non-fungible aid corresponds with decreases in conflict levels suggesting that aid increases the opportunity costs of rebellion although the magnitude of the effect is very low.

7

AidData Working Paper

Building a Stronger System for Tracking Nutrition Sensitive Spending

2015-05-04

Scott B. Ickes, Rachel B. Trichler, Bradley C. Parks

Models indicate that the amount of nutrition sensitive and total nutrition ODA was significantly predicted by stunting prevalence

AidData Working Paper

Building a Stronger System for Tracking Nutrition Sensitive Spending

2015-05-04

Scott B. Ickes, Rachel B. Trichler, Bradley C. Parks

Models indicate that the amount of nutrition sensitive and total nutrition ODA was significantly predicted by stunting prevalence

AidData Working Paper

Building a Stronger System for Tracking Nutrition Sensitive Spending

2015-05-04

Scott B. Ickes, Rachel B. Trichler, Bradley C. Parks

Models indicate that the amount of nutrition sensitive and total nutrition ODA was significantly predicted by stunting prevalence

There is growing awareness that the necessary solutions for improving nutrition outcomes are multi-sectoral. As such, investments are increasingly directed towards “nutrition sensitive” approaches that not only address an underlying or basic determinant of nutrition, but also seek to achieve an explicit nutrition goal or outcome. Understanding how and where official development assistance for nutrition is invested remains an important but complex challenge. Our objective was to develop a methodology for classifying and tracking nutrition sensitive official development assistance and to produce estimates of the amount of nutrition sensitive aid received by countries with a high burden of undernutrition. We analyzed all financial flows reported to the Organization for Economic Co-Operation and Development’s Development Assistance Committee Creditor Reporting Service in 2010 to estimate these investments. We assessed the relationships between national stunting prevalence, stunting burden, under-five mortality and the amount of nutrition specific and nutrition sensitive ODA. We estimate that, in 2010, a total of $379.4 million (M) USD was committed to nutrition specific projects and programs, of which 25 designated beneficiaries accounted for nearly 85% ($320 M). A total of $1.79 billion (B) was committed to nutrition sensitive spending, of which the top 25 countries/regions accounted for $1.4 B (82%). Nine categories of development activities accounted for 75% of nutrition sensitive spending, led by Reproductive Health Care (30.4%), Food Aid/Food Security Programs (14.1%), Emergency Food Aid (13.2%), and Basic Health Care (5.0%). Multivariate linear regression models indicate that the amount of nutrition sensitive (p=0·001) and total nutrition ODA was significantly predicted by stunting prevalence (p = 0.001). The size of the total population of stunted children significantly predicted the amount of nutrition specific ODA (p < 0.001). A reliable estimate of nutrition spending is critical for effective planning by both donors and recipients, and a key for success as the global development community re-commits to a new round of goals to address the inter-related causes of undernutrition in low-income countries.

6

AidData Working Paper

The Foreign Aid Effectiveness Debate: Evidence from Malawi

2015-05-03

Rajlakshmi De, Charles Becker

Results suggest that a sub-national framework provides sufficient granularity for detecting impacts of foreign aid on poverty alleviation.

AidData Working Paper

The Foreign Aid Effectiveness Debate: Evidence from Malawi

2015-05-03

Rajlakshmi De, Charles Becker

Results suggest that a sub-national framework provides sufficient granularity for detecting impacts of foreign aid on poverty alleviation.

AidData Working Paper

The Foreign Aid Effectiveness Debate: Evidence from Malawi

2015-05-03

Rajlakshmi De, Charles Becker

Results suggest that a sub-national framework provides sufficient granularity for detecting impacts of foreign aid on poverty alleviation.

Understanding the role of foreign aid in poverty alleviation is one of the central inquiries of development economics. To augment past cross-country studies, this paper offers a first step toward addressing the absence of disaggregated estimates of the allocation and impact of foreign aid. Newly geocoded aid project data from Malawi are used in combination with multiple rounds of living standards data to assess the allocation and impact of health aid, water aid, and education aid. Allocation is modeled using living standards variables, geographic indicators, and other aid bundling. Significant, positive effects of health aid on decreasing disease severity and of water aid on decreasing diarrhea incidence were estimated through both IV and PSM difference-in-differences approaches. An appropriate instrument for education aid could not be determined, but propensity score matching methods indicate a potential positive effect of education aid on school enrollment. Different aid donors’ allocation behaviors are also assessed. The aid impact results suggest that a sub-national framework provides sufficient granularity for detecting the impacts of foreign aid on poverty alleviation in Malawi and that policymakers and governments should use geographic living standards information to inform future aid allocation.

5

AidData Working Paper

The Political Economy of Aid Allocation in Africa: Evidence from Zambia

2015-05-02

Takaaki Masaki

Political elites distribute more donor projects to districts where opposition to the ruling party enjoys greater popularity

AidData Working Paper

The Political Economy of Aid Allocation in Africa: Evidence from Zambia

2015-05-02

Takaaki Masaki

Political elites distribute more donor projects to districts where opposition to the ruling party enjoys greater popularity

AidData Working Paper

The Political Economy of Aid Allocation in Africa: Evidence from Zambia

2015-05-02

Takaaki Masaki

Political elites distribute more donor projects to districts where opposition to the ruling party enjoys greater popularity

Does electoral politics influence the allocation of foreign aid within aid-recipient countries? Despite the abundance of studies on the determinants of aid allocation, the existing literature offers little leverage on this question, largely due to the paucity of data on the locations of donor-funded projects. In this essay, I utilize newly available data on the georaphical distribution of development projects in Zambia to test whether electorial incentivies shape aid allocation at the sub-national level. Challenging a widespread belief in African politics that autocrats reward their own core supporters with more resources, I argue -- and find strong evidence -- that when they have limited knowledge about citizens' voting preferences, political elites distribute more donor projects to districts where opposition to the ruling party (or incumbent president) enjoys greater popularity; and districts where a majority of voters share the ethnicity of the incumbent president.

4

AidData Working Paper

Aiming at the Wrong Targets: The Difficulty of Improving Domestic Institutions with International Aid

2015-05-01

Benjamin P. Buch, Mark T. Buntaine, Bradley C. Parks

Aid-dependent countries are more likely to select targets that measure public sector organization rather than policy outcomes.

AidData Working Paper

Aiming at the Wrong Targets: The Difficulty of Improving Domestic Institutions with International Aid

2015-05-01

Benjamin P. Buch, Mark T. Buntaine, Bradley C. Parks

Aid-dependent countries are more likely to select targets that measure public sector organization rather than policy outcomes.

AidData Working Paper

Aiming at the Wrong Targets: The Difficulty of Improving Domestic Institutions with International Aid

2015-05-01

Benjamin P. Buch, Mark T. Buntaine, Bradley C. Parks

Aid-dependent countries are more likely to select targets that measure public sector organization rather than policy outcomes.

We explain why the record of aid agencies in building and reforming public sector institutions in developing countries has been broadly unsuccessful, despite extraordinary amounts of time, money, effort, and a commitment to achieve targets. We argue that requirements to specify and monitor observable indicators of success have created strong incentives for aid-dependent countries to signal performance to their foreign sponsors by achieving targets. However, in the absence of requirements about the types of targets that should be pursued, countries that rely heavily upon external sources of financial support select easy targets that have limited value for strengthening public sector institutions. In particular, aid-dependent countries are more likely to select targets that measure how public sector institutions are organized, rather than targets that measure what policy outcomes are achieved through strengthened public sector institutions. We demonstrate that this argument has both explanatory and predictive power for World Bank environment and natural resource management projects.

3

AidData Working Paper

Aid on Demand: African Leaders and the Geography of China's Foreign Assistance

2014-11-01

Axel Dreher, Andreas Fuchs, Roland Hodler, Bradley C. Parks, Paul A. Raschky, Michael J. Tierney

Chinese aid improves local development outcomes, as measured by per-capita nighttime light emissions.

AidData Working Paper

Aid on Demand: African Leaders and the Geography of China's Foreign Assistance

2014-11-01

Axel Dreher, Andreas Fuchs, Roland Hodler, Bradley C. Parks, Paul A. Raschky, Michael J. Tierney

Chinese aid improves local development outcomes, as measured by per-capita nighttime light emissions.

AidData Working Paper

Aid on Demand: African Leaders and the Geography of China's Foreign Assistance

2014-11-01

Axel Dreher, Andreas Fuchs, Roland Hodler, Bradley C. Parks, Paul A. Raschky, Michael J. Tierney

Chinese aid improves local development outcomes, as measured by per-capita nighttime light emissions.

This article investigates whether China’s foreign aid is particularly prone to capture by political leaders of aid-receiving countries. We examine whether more Chinese aid is allocated to the birth regions of political leaders and regions populated by the ethnic groups to which leaders belong, controlling for indicators of need and various fixed effects. We have collected data on 117 African leaders’ birthplaces and ethnic groups and have geocoded 1,650 Chinese development finance projects across 3,097 physical locations that were committed to Africa over the 2000–2012 period. Our econometric results show that when leaders hold power their birth regions receive substantially more funding from China than other subnational regions. We also find—less robust—evidence that African leaders direct more Chinese aid to areas populated by individuals who share their ethnicity. However, when we replicate the analysis for the World Bank, our regressions show no evidence of favoritism. We also evaluate the impact of Chinese aid on regional development, exploiting time variation in the amount of Chinese aid that results from China’s production of steel and geographical variation in the probability that a subnational region will receive such aid. We find that Chinese aid improves local development outcomes, as measured by per-capita nighttime light emissions at the first and second subnational administrative level. We therefore conclude that China’s foreign aid program has both distributional and developmental consequences for Africa.

2

AidData Working Paper

Titling Community Land to Prevent Deforestation: No Reduction in Forest Loss in Morona-Santiago, Ecuador

2014-10-01

Mark T. Buntaine, Stuart E. Hamilton, Marco Millones

AidData Working Paper

Titling Community Land to Prevent Deforestation: No Reduction in Forest Loss in Morona-Santiago, Ecuador

2014-10-01

Mark T. Buntaine, Stuart E. Hamilton, Marco Millones

AidData Working Paper

Titling Community Land to Prevent Deforestation: No Reduction in Forest Loss in Morona-Santiago, Ecuador

2014-10-01

Mark T. Buntaine, Stuart E. Hamilton, Marco Millones

Land tenure and land titling programs for forests have become a mainstay of conservation and resource management policy worldwide. They are thought to reduce deforestation by lengthening the time horizon of landholders and improving the ability of landholders to legally exclude competing users. Despite these expectations, reliable evidence about how land titling programs affect forest cover is limited because programs are targeted according to other factors that themselves influence the conversion of forests, such as indigenous status or low population density. We investigate the effect of a donor-funded land titling and management program on forest cover in Morona-Santiago, Ecuador. To estimate the impact of community land titles and management plans, we match plots in program areas with similar plots outside program areas on a variety of covariates that influence forest conversion. Based on matched comparisons, we do not find evidence that land titling or the creation of community management plans reduced forest loss in the first five years after the program. Our results are some of the first evidence about the effects of land titling programs on forests that account for spatial assignment and interactions with other institutions. More broadly, our analysis demonstrates the promise of using remotely sensed data to evaluate the effects of policies beyond normal cycles of policy and program evaluation.

1

AidData Working Paper

Leveraging Aid for Trade Capacity in Uganda

2014-10-01

Alex Thomas Ijjo, Isaac Shinyekwa

AidData Working Paper

Leveraging Aid for Trade Capacity in Uganda

2014-10-01

Alex Thomas Ijjo, Isaac Shinyekwa

AidData Working Paper

Leveraging Aid for Trade Capacity in Uganda

2014-10-01

Alex Thomas Ijjo, Isaac Shinyekwa

The hindrances to the gainful participation of least developed countries (LDCs) in international trade are predominantly domestic supply related constraints rather than foreign market access. These constraints include variable productive capacity, economic infrastructure bottlenecks, and inability to meet international quality standards. In recognition of such challenges facing LDCs, the World Trade Organization (WTO) launched the “Aid for Trade” (AFT) initiative in 2005 to coordinate international support for strengthening trade capacity in LDCs. Looking at the case of Uganda, we initially examine the role of overall Official Development Assistance (ODA) in driving Uganda’s external trade and then specifically that of AFT in strengthening national trade capacity. Although we find reasonable alignment between aid and national development priorities, there is, as yet, very little evidence of a robust aid impact especially on export capability vis-à-vis that of import. The paper underscores persisting deficiency in Uganda’s capacity to meet internationally accepted standards and to ensure stability and consistency in export supplies. While we note the development of some capacity in trade policy formulation and the mainstreaming of more relevant trade strategies into the country’s National Development Plan (NDP) with aid support, we recommend that future aid support be directed into unlocking the crippling constraints in Uganda’s productive capacity, standards development, economic infrastructure and sound trade policy analysis and formulation.