We study how the allocation of resources impacts localised crime rates. Recent studies on the effects of Chinese aid in Africa have increased rapidly, and this paper contributes by showing the mechanism by which aid increases crime. Using a geo‐referenced dataset of subnational allocation of Chinese projects, geographically matched with 145 701 respondents of four rounds of Afrobarometer surveys from 36 African countries, we use a difference‐in‐difference‐in‐difference (DDD) approach and an instrumental variable (IV) identification strategy to account for endogeneity and capture the effect of living near projects under implementation before or after a survey against those with no projects. We find that Chinese aid projects significantly increased crime rates in the immediate locations where the projects were implemented. The main channel of effect is the increased local economic activities leading to the availability of employable opportunities. There is a similar but smaller magnitude of the effect regarding projects funded by other donor agencies.

This chapter starts with the need for infrastructure investment in One Belt One Road (OBOR) countries. By employing a simple linear regression analysis, it is evident that massive infrastructure could lead to an improved wellbeing of member countries. The chapter also highlights the current state of infrastructure investment levels of participating countries. The evidence shows that most member countries lack quality infrastructure levels. The concluding part of the chapter explores economic integration among member countries. Through network analysis, it is evident that though member countries are gradually being integrated, such integration is at a slower rate than expected. Massive investment in infrastructure in China and by extension the countries along the Belt and Road would not only provide financial gains to business partners but would as well lead to an improved wellbeing of countries in the initiative. This provides an opportunity for both domestic and foreign businesses to consider massive investment in infrastructure in China, which is at the center of the initiative.

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