The Potential Role of Non-Traditional Donors’ Aid in Africa

Social and Community Development Practice

“…In contrast, research on non-DAC aid is still in its infancy. Manning (2006), ECOSOC (2008) and Kragelund (2008Kragelund ( , 2010 provide good overviews of the aid activities of these so-called new donors. Among the few econometric studies on aid allocation by non-DAC donors are Neumayer (2003aNeumayer ( , 2004 Banerjee (1982: 27), India provides aid to neighboring countries "with the sole objective of restoring the local citizens to a place of primacy."…”

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

“…The two‐tier bargaining model that highlights the important role of the home country government in MNEs’ overseas investments might offer some insight into the growth of Chinese MNEs in the natural resource sector. Research studies and media reports suggest that the Chinese government has been frequently involved in developing economic and diplomatic ties with countries rich in natural resources, which presumably increases investment opportunities and lowers political risks facing Chinese MNEs (Alden and Davies, ; Broadman, ; Kragelund, ; Wall Street Journal , ; Wooldridge, ). However, the two‐tier model cannot fully explain the nature of Chinese FDI in the resource sector, for two reasons.…”

“…As a benchmark for comparisons, we also include a few Western natural resource companies in our sample. We choose the empirical setting of Africa because Chinese natural resource companies have experienced rapid growth in that region despite the high political risks they face (Alden and Davies, ; Besada et al ., ; Broadman, ; Corkin, ; Kragelund, ; Mlachila and Takebe, ). In particular, we focus on investments in Tanzania and conduct extensive interviews with nine global extractive companies (five Chinese and four Western) and with several Tanzanian and Chinese government officials.…”

The Needy Donor: An Empirical Analysis of India’s Aid Motives

“…In contrast, research on non-DAC aid is still in its infancy. Manning (2006), ECOSOC (2008) and Kragelund (2008Kragelund ( , 2010 At the same time, India emphasizes that its aid serves "mutual benefit" (ITEC 2011), i.e., its aid allocation is also motivated by Indian interests that are not directly related to the developmental concerns of its partner countries in the developing world. In this regard, the MEA (2004: 133) openly admits that "[t]he Government has been using development aid, including grants and LOCs on concessional terms as tools for promotion of India's political, economic and commercial interests."…”