Bad neighbors? How co-located Chinese and World Bank development projects impact local corruption in Tanzania
- 1.5k Downloads
The rise of China as a "non-traditional" development partner has been one of the most important phenomena in the field over the past decade. The lack of transparency in Chinese development projects, coupled with an uninterested stance towards governance, lead many to wonder if Chinese engagement will contribute to or undermine existing development efforts. This paper adds to the debate by inquiring as to the relationship of Chinese development efforts with perceptions of, and experiences with, corruption when projects are closely-located to those from a traditional donor, the World Bank. Taking advantage of spatial data, the paper evidences an association between the location of a larger number of Chinese projects and higher experiences with and, to some extent, perceptions of corruption when accounting for co-located World Bank projects. Likewise, while World Bank projects are associated with lower levels of corruption in the absence of Chinese projects, this relationship disappears when Chinese projects are nearby. However, these relationships only hold for Chinese projects which are not "aid-like," suggesting that the differentiation of Chinese overseas flows is an important consideration when studying China as a development partner.
KeywordsChina World Bank ODA OOF Development Corruption Governance AidData Tanzania Africa
JEL ClassificationF35 F63 O19 O55 C21 D73
- Afrobarometer briefing paper (2006) Combating corruption in Tanzania: perceptions and experience. Available at: http://www.afrobarometer.org/publications/bp33-combating-corruption-tanzania-perception-and-experience Accessed April 5, 2016.
- Alves, A. C. (2013). Chinese economic statecraft: a comparative study of China’s oil-backed loans in Angola and Brazil. Journal of Current Chinese Affairs, 42(1), 99–130.Google Scholar
- Annen, K., & Knack, S. (2015). On the delegation of aid implementation to multilateral agencies. World Bank Policy Research Working Paper, (7455). Washington, DC.Google Scholar
- Asongu, S. A., & Nwachukwu, J. (2014). Foreign aid and governance in Africa.Google Scholar
- Attila, J. (2009). Individual attitudes toward anti-corruption policies in sub-Saharan Africa: Microeconometric evidence. Economics Bulletin, 29(3), 1927–1933.Google Scholar
- Baldwin, K. & Winters, M. (2016). Can international aid change the politics of service delivery? Working paper, August 2016.Google Scholar
- BenYishay, A., Parks, B., Runfola, R., Trichler, R. (2016). Forest cover impacts of Chinese development projects in ecologically sensitive areas. Paper presented at SAIS CARI 2016 Conference. October 13–14. Washington, DC.Google Scholar
- Brautigam, D. (2009). The dragon's gift: the real story of China in Africa: OUP Oxford.Google Scholar
- Calabrese, R., & Elkink, J. (2014). “Estimators of binary spatial autoregressive models: A Monte Carlo study.” Journal of Regional Science 54(4):664–687.Google Scholar
- Case, A. C. (1991). Spatial patterns in household demand. Econometrica: Journal of the Econometric Society, 953–965.Google Scholar
- Collier, P. (2007). The bottom billion. Economic Review-Deddington, 25(1), 17.Google Scholar
- Dettman, S. & Pepinsky, T. (2016). Resource shocks and public and local public goods: a tale of two districts. Working paper. Accessed at http://cpd.berkeley.edu/wp-content/uploads/2016/02/paper-for-berkeley-presentation.pdf 29-10-2016.
- Dietrich, S., Mahmud, M., & Winters, M. S. (2015). Foreign aid, foreign policy, and domestic government legitimacy: experimental evidence from Bangladesh, AidData Working Paper No. 16. Williamsburg.Google Scholar
- Dreher, A., Fuchs, A., Parks, B., Strange, A. M., & Tierney, M. J. (2015). Apples and dragon fruits: the determinants of aid and other forms of state financing from China to Africa. International Studies Quarterly, forthcoming.Google Scholar
- Dreher, A., Fuchs, A., Hodler, R., Parks, B., Raschky, P. A., & Tierney, M. J. (2016). Aid on demand: African leaders and the geography of China's foreign assistance, AidData Working Paper No. 3 Revised. Williamsburg.Google Scholar
- Findley, M. G., Harris, A. S., Milner, H. V., & Nielson, D. (2015). Elite and mass support for foreign aid versus government programs: experimental evidence from uganda.Google Scholar
- Fleming, M. (2004). "Techniques for estimating spatially dependent discrete choice models": Advances in spatial econometrics. In L. Anselin, R. Florax & S. Rey (Eds.), Methodology, tools and applications (pp. 145–167) Berlin: Springer.Google Scholar
- Furukawa, M. (2014). Management of the international development aid system aid system and the creation of political space for China: the case of Tanzania.Google Scholar
- Gutmann, J., Padovano, F., & Voigt, S. (2015). Perception vs. experience: explaining differences in corruption measures using microdata. Experience: Explaining Differences in Corruption Measures Using Microdata (September 11, 2015). Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2659349.
- Hernandez, D. (2015). Are “new” donors challenging World Bank conditionality?. University of Heidelberg Department of Economics Discussion Paper Series No. 601. Heidelberg.Google Scholar
- Hinga, J., & Yiguan, Q. (2013). China-Africa cooperation–an outstanding relationship built on mutual respect and common benefits: a review. International Research Journal of Social Sciences, 2(9), 26–32.Google Scholar
- Isaksson, A. S., & Kotsadam, A. (2016). Chinese aid and local corruption. University of Gothenburg Working Papers in Economics No. 667. June 2016. Goteborg.Google Scholar
- Knutsen, C. H., Kotsadam, A., Olsen, E. H., & Wig, T. (2016). Mining and local corruption in Africa. American Journal of Political Science. Early View 13 September 2016. doi: 10.1111/ajps.12268
- Lopez-Valcarcel, B. G., Jiménez, J. L., & Perdiguero, J. (2014). Danger: local corruption is contagious!. Unpublished manuscript. http://www.alde.es/encuentros/anteriores/xviieea/trabajos/g/pdf/179.pdf.
- Manda, C., Knowles, J., Connors, J., & Mwombela, S. (2014). Borders: social interaction and economic and political integration of the east African community.Google Scholar
- Moshi, H., Mtui, J., & es Salaam, D. (2008). Scoping studies on China-Africa economic relations: the case of Tanzania. Nairobi: AERC (mimeo).Google Scholar
- Muchapondwa, E., Nielson, D., Parks, B., Strange, A. M., & Tierney, M. J. (2014). Ground-truthing'Chinese development finance in Africa: field evidence from South Africa and Uganda. WIDER Working Paper.Google Scholar
- Mwombela, S. (2015) What shapes Tanzanians’ image of China? Findings from the Afrobarometer Round 6 Survey in Tanzania, Repoa, Policy Research for Development. [ONLINE] Available at: http://www.repoa.or.tz/images/uploads/TAN_R6_dissemination_2_Chinese_Engagement_25Feb2015.pdf [Accessed 15 August 2015]
- Olken, B. A., & Pande, R. (2011). Corruption in developing countries (no. w17398). National Bureau of Economic Research.Google Scholar
- Pearl, J. (2000). Causality: models, reasoning, and inference. Cambridge: Cambridge University Press.Google Scholar
- Pehnelt, G. (2007). The political economy of China's aid policy in Africa. Jena Economic Research Paper (2007–051).Google Scholar
- Richmond, S., & Alpin, C. (2013). Governments falter in fight to curb corruption: the people give most a failing grade. Afrobarometer Policy paper(4). Google Scholar
- Schudel, C. J. W. (2008). Corruption and bilateral aid: a dyadic approach. Journal of Conflict Resolution, 52(4), 507–526.Google Scholar
- Strange, A. M., Park, B., Tierney, M. J., Fuchs, A., Dreher, A., & Ramachandran, V. (2013). China's development finance to Africa: a media-based approach to data collection. Center for Global Development working paper(323).Google Scholar
- Strange, A. M., Dreher, A., Fuchs, A., Parks, B., & Tierney, M. J. (2015). Tracking underreported financial flows China’s development finance and the aid–conflict nexus revisited. Journal of Conflict Resolution, 0022002715604363.Google Scholar
- Sun, Y. (2014). Africa in China’s foreign policy. The Brookings Institution.Google Scholar
- Wang, X., & Ozanne, A. (2000). Two approaches to aid in Africa: China and the West. In Prepared for the International Conference “Ten Years Of ‘War Against Poverty’: What Have We Learned Since, 2000. 2010–2020.Google Scholar
- Wilhelm, S., & Godinho de Matos, M. (2013). "Estimating spatial probit models in R." The R Journal 5(1), 130–143.Google Scholar
- World Bank (1998) Support to the Government of Tanzania's Anti-Corruption Program. World Bank Poverty Reduction and Social Development Unit Africa Region. October 1998. Available at: http://www1.worldbank.org/publicsector/anticorrupt/TanzaniaGCA.pdf accessed 29-10-2016.
- Zhu, B. (2016). MNCs, rents, and corruption: evidence from China. American Journal of Political Science. Early Views. doi: 10.1111/ajps.12259