Conditioning the Effects of Aid: Cold War Politics, Donor Credibility, and Democracy in Africa

  title={Conditioning the Effects of Aid: Cold War Politics, Donor Credibility, and Democracy in Africa},
  author={Thad Dunning},
  journal={International Organization},
  pages={409 - 423}
  • T. Dunning
  • Published 1 April 2004
  • Economics
  • International Organization
The effect of foreign aid on regime type in recipient countries remains widely debated. In this research note, I argue that a recent focus on “moral hazard” has distracted attention from another mechanism linking foreign aid to domestic political institutions. During the Cold War, donors' geopolitical objectives diminished the credibility of threats to condition aid on the adoption of democratic reforms. The demise of the Soviet Union and the end of the Cold War, on the other hand, enhanced the… 
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