Advertisement

The Changing Aid Landscape and the Political Economy of Development in Southeast Asia

  • Andrew RosserEmail author
Chapter
  • 31 Downloads
Part of the Studies in the Political Economy of Public Policy book series (PEPP)

Abstract

Recent changes in the aid landscape in Southeast Asia—particularly China’s growing role as a donor—have empowered predatory, populist and authoritarian elites by allowing them to reduce aid from traditional donors in favour of aid with fewer policy or institution-related conditions attached or that otherwise better fits with their political priorities. This undermines traditional donors’ efforts to promote neoliberal and liberal-democratic reform. However, this shift is not as dramatic as some contend. Concern about the impact of Chinese lending on government debt levels induces caution among many Southeast Asian governments, and China has backed some liberal policy and institutional reform initiatives, meaning that its agenda is not always at odds with those of traditional donors.

Keywords

Aid Development Good governance International financial institutions China Debt 

References

  1. AidData. (n.d.). By the numbers: China’s global development footprint. https://www.aiddata.org/china-official-finance. Accessed 15 Mar 2019.
  2. Australia’s Department of Foreign Affairs and Trade. (n.d.). Asian Infrastructure Investment Bank. https://dfat.gov.au/international-relations/international-organisations/multilateral-development-banks/Pages/asian-infrastructure-investment-bank.aspx. Accessed 22 Dec 2018.
  3. Azhar, K. (2018, June 14). Minus HSR, whither Bandar Malaysia? The Edge Weekly. http://www.theedgemarkets.com/article/minus-hsr-whither-bandar-malaysia. Accessed 17 Nov 2018.
  4. Bhattacharjee, G. (2018, October 20). Trap of the century. The Straits Times. https://www.straitstimes.com/asia/east-asia/chinas-belt-and-road-initiative-debt-trap-or-hope. Accessed 29 Dec 2018.
  5. Breslin, S. (2013). China and the south: Objectives, actors and interactions. Development and Change, 44(6), 1273–1294.CrossRefGoogle Scholar
  6. Brinkley, J. (n.d.). China’s aid to Cambodia ignores rights abuses. http://www.worldaffairsjournal.org/article/china%E2%80%99s-aid-cambodia-ignores-rights-abuses. Accessed 22 Dec 2018.
  7. Cai, P. (2017). Understanding China’s belt and road initiative. Sydney: Lowy Institute.Google Scholar
  8. Callan P., Blak, J., & Thomas, A. (2013). Emerging voices: Callan, Blak, and Thomas on the landscape of emerging aid donors. http://blogs.cfr.org/development-channel/2013/04/02/emerging-voices-callan-blak-and-thomas-on-the-landscape-of-emerging-aid-donors/. Accessed 24 July 2015.
  9. Carroll, T. (2017). Neoliberalism and multilateral development organizations in Southeast Asia. In A. McGregor, L. Law, & F. Miller (Eds.), Routledge handbook of southeast Asian development (pp. 69–84). London: Routledge.CrossRefGoogle Scholar
  10. Dreher, A., Fuchs, A., Parks, B., Strange, A., & Tierney, M. (2018). Apples and dragon fruits: The determinants of aid and other forms of state financing from China to Africa. International Studies Quarterly, 61(1), 182–194.CrossRefGoogle Scholar
  11. EITI International Secretariat. (2016). Brief: Chinese companies reporting in EITI countries. Review of the engagement of Chinese firms in countries implementing the EITI. Oslo: EITI International Secretariat.Google Scholar
  12. Elemia, C. (2018, March 2). After Duterte tirades, EU won’t repeat human rights clause in PH deals. Rappler. https://www.rappler.com/nation/197268-eu-human-rights-financial-agreements-philippines. Accessed 30 Dec 2018.
  13. Elmer, K. (2018, June 19). China pledges more military aid as Cambodia prepares for controversial election. South China Morning Post. https://www.scmp.com/news/china/diplomacy-defence/article/2151495/chinas-pledges-more-military-aid-cambodia-prepares Accessed 9 Feb 2018.
  14. Erikson, A. (2018, August 21). Malaysia cancels two big Chinese projects, fearing they will bankrupt the country. The Washington Post. https://www.washingtonpost.com/world/asia_pacific/malaysia-cancels-two-massive-chinese-projects-fearing-they-will-bankrupt-the-country/2018/08/21/2bd150e0-a515-11e8-b76b-d513a40042f6_story.html?utm_term=.26db9925fc64. Accessed 17 Nov 2018.
  15. Freedom House. (2018). Freedom in the World. https://freedomhouse.org/report-types/freedom-world. Accessed 16 May 2019.
  16. Gu, J., & Kitano, N. (2018). Introduction: Beyond aid—The future of development cooperation. IDS Bulletin, 49(3), 1–12.Google Scholar
  17. Hameiri, S., & Jones, L. (2018). China challenges global governance? Chinese international development finance and the AIIB. International Affairs, 94(3), 573–593.CrossRefGoogle Scholar
  18. Hewison, K., Robison, R., & Rodan, G. (Eds.). (1993). Southeast Asia in the 1990s: Authoritarianism, democracy and capitalism. Sydney: Allen and Unwin.Google Scholar
  19. Hout, W. (2004). Political regimes and development assistance: The political economy of aid selectivity. Critical Asian Studies, 36(4), 591–613.CrossRefGoogle Scholar
  20. Hughes, C. (2006). Cambodia. IDS Bulletin, 37(2), 67–78.CrossRefGoogle Scholar
  21. Irish, J. (2018, July 20). Boycott sham Cambodian elections, says opponent Rainsy. Reuters. https://www.yahoo.com/news/boycott-sham-cambodian-elections-says-opponent-rainsy-172141027.html. Accessed 13 Dec 2018.
  22. Jayasuriya, K., & Rosser, A. (2001). Economic orthodoxy and the Asian economic crisis. Third World Quarterly, 22(3), 381–396.CrossRefGoogle Scholar
  23. Katsumata, H. (2006). Why does Japan downplay human rights in Southeast Asia? International Relations of the Asia-Pacific, 6(2), 249–267.CrossRefGoogle Scholar
  24. Kilby, P. (2012). The changing development landscape in the first decade of the 21st century and its implications for development studies. Third World Quarterly, 33(6), 1001–1017.CrossRefGoogle Scholar
  25. Kilby, P. (2017). China and the United States as donors: Past and future trajectories. Honolulu, HI: East West Center.Google Scholar
  26. Landingin, R. (2013). Chinese foreign aid goes offtrack in the Philippines. In Reality of Aid Management Committee (Ed.), The reality of aid. South–south cooperation: A challenge to the aid system? (pp. 87–94). Quezon City: IBON Books.Google Scholar
  27. Lindberg, K., & Lahiri, T. (2018, December 28). From Asia to Africa, China’s “debt trap diplomacy” was under siege in 2018. Quartz. https://qz.com/1497584/how-chinas-debt-trap-diplomacy-came-under-siege-in-2018/. Accessed 9 Feb 2019.
  28. Mattlin, M., & Nojonen, M. (2015). Conditionality and path dependence in Chinese lending. Journal of Contemporary China, 24(94), 701–720.CrossRefGoogle Scholar
  29. Mawdsley, E. (2012). From recipients to donors: Emerging powers and the changing development landscape. London: Zed Books.Google Scholar
  30. Moore, M. (1993). Declining to learn from the east: The World Bank on “governance and development”. IDS Bulletin, 24(1), 39–50.CrossRefGoogle Scholar
  31. Naim, M. (2007). Rogue aid. Foreign Policy, 159, 95–96.Google Scholar
  32. Nitta, Y., & Htway, T. (2018, July 4). Myanmar will ask China to downsize project, minister says. Nikkei Asian Review. https://asia.nikkei.com/Politics/Myanmar-will-ask-China-to-downsize-project-minister-says. Accessed 9 Feb 2019.
  33. O’Keefe, A. (2011, December 9). Busan: A good result for Australia. Lowy Interpreter. http://www.lowyinterpreter.org/post/2011/12/09/Busan-A-good-result-for-Australia.aspx. Accessed 17 Nov 2013.
  34. OECD. (2019a). Creditor reporting system. https://stats.oecd.org/Index.aspx?DataSetCode=crs1. Accessed 1 Feb 2019.
  35. OECD. (2019b). Geobook: Geographical flows to developing countries. https://stats.oecd.org/Index.aspx?DataSetCode=DACGEO. Accessed 1 Feb 2019.
  36. OECD. (n.d.-a). Official development assistance: Definition and coverage. http://www.oecd.org/dac/stats/officialdevelopmentassistancedefinitionandcoverage.htm. Accessed 22 Dec 2018.
  37. OECD. (n.d.-b). Other Official Flows (OOF). https://data.oecd.org/drf/other-official-flows-oof.htm. Accessed 22 Dec 2018.
  38. Oh, Y. (2016). China’s development finance to Asia: Characteristics and implications (KIEP working paper no. 16–12). Sejong-si: Korea Institute for International Economic Policy.Google Scholar
  39. Paczynska, A. (2016). Emerging and traditional donors and conflict-affected states: The new politics of reconstruction (Policy brief no. 1). Washington, DC: George Mason University/Stimson Center. https://www.stimson.org/sites/default/files/file-attachments/Changing%20Landscape%20of%20Assistance%20to%20Conflict-Affected%20States-%20Emerging%20and%20Traditional%20Donors%20and%20Opportunities%20for%20Collaboration%20Policy%20Brief%20%20%2311.pdf. Accessed 9 Feb 2019.
  40. Ravelo, J. (2018). After a tumultuous year, EU aid to continue in the Philippines. Devex. https://www.devex.com/news/after-a-tumultuous-year-eu-aid-to-continue-in-the-philippines-92247. Accessed 30 Dec 2018.
  41. Reilly, J. (2012). A norm taker or a norm maker: Chinese aid in Southeast Asia. Journal of Contemporary China, 21(73), 71–91.CrossRefGoogle Scholar
  42. Reuters. (2018). Malaysia’s Mahathir cancels China-backed rail, pipeline projects. Reuters. https://www.reuters.com/article/us-china-malaysia/malaysias-mahathir-cancels-china-backed-rail-pipeline-projects-idUSKCN1L60DQ. Accessed 17 Nov 2018.
  43. Robison, R., & Hadiz, V. (2004). Reorganising power in Indonesia: The politics of oligarchy in an age of markets. London: Routledge.Google Scholar
  44. Rodan, G., & Hughes, C. (2014). The politics of accountability in Southeast Asia: The dominance of moral ideologies. Oxford: Oxford University Press.CrossRefGoogle Scholar
  45. Rosser, A. (2002). The politics of economic liberalisation in Indonesia: State, market and power. Richmond: Curzon.Google Scholar
  46. Shiga, H. (2018). India’s role as a facilitator of constitutional democracy. IDS Bulletin, 49(3), 93–110.CrossRefGoogle Scholar
  47. State Council of the People’s Republic of China. (2014). China’s foreign aid. http://english.gov.cn/archive/white_paper/2014/08/23/content_281474982986592.htm. Accessed 9 Feb 2019.
  48. Strawson, T. (2017). Financing the sustainable development goals in ASEAN: Strengthening integrated national financing frameworks to deliver the 2030 agenda. Bangkok: UNDP.Google Scholar
  49. Sukumaran, B. (2018, September 5). Not cancelled: Malaysia–Singapore high-speed rail delayed in Mahathir u-turn. South China Morning Post. https://www.scmp.com/week-asia/geopolitics/article/2162841/malaysia-singapore-high-speed-rail-delayed-mahathir-u-turn. Accessed 17 Nov 2018.
  50. Tan-Mullins, M. (2017). Implications of non-OECD aid in Southeast Asia: The Chinese example. In A. McGregor, L. Law, & F. Miller (Eds.), Routledge handbook of southeast Asian development (pp. 142–152). London: Routledge.CrossRefGoogle Scholar
  51. Thul, P. (2018, February 28). Cambodia “shocked” by “disrespectful” U.S. aid cut, says democracy intact. Reuters. https://www.reuters.com/article/us-cambodia-politics-usa/cambodia-shocled-by-disrepesctful-s-s-aid-cut-say-democracy-intact-iduskcn1gc0x0. Accessed 21 Nov 2018.
  52. Touch, D. (2018, July 13). Why Japan is supporting Cambodia’s elections. The Interpreter. https://www.lowyinstitute.org/the-interpreter/why-japan-supporting-cambodias-election. Accessed 21 Nov 2018.
  53. Trade Justice Pilipinas. (n.d.). Human rights should be central to EU–Philippines partnership. https://focusweb.org/content/human-rights-should-be-central-eu-philippines-partnership. Accessed 9 Feb 2019.
  54. Tran, M. (2011, December 11). China and India to join aid partnership on new terms. The Guardian. http://www.theguardian.com/global-development/2011/dec/01/china-india-aid-partnership. Accessed 17 Nov 2013.
  55. van der Eng, P. (2017). Why does Indonesia seem to prefer foreign aid from China? http://www.eastasiaforum.org/2017/12/02/why-does-indonesia-seem-to-prefer-foreign-aid-from-china/. Accessed 11 Dec 2018.
  56. Varrall, M. (2016). Domestic actors and agendas in Chinese aid policy. Pacific Review, 29(1), 21–44.CrossRefGoogle Scholar
  57. Walker, C., & Cook, S. (2010, March 24). The dark side of China aid. New York Times. https://www.nytimes.com/2010/03/25/opinion/25iht-edwalker.html. Accessed 23 Dec 2018.
  58. Walz, J., & Ramachandran, V. (2011). Brave new world: A literature review of emerging donors and the changing nature of foreign assistance (CGD working paper no. 273). Washington, DC: Center for Global Development.Google Scholar
  59. Williamson, J. (Ed.). (1990). Latin American adjustment: How much has happened? Washington, DC: Institute for International Economics.Google Scholar
  60. Wilson, J. (2018). The AIIB and Australian participation in Chinese infrastructure initiatives. Devpolicy. http://www.devpolicy.org/the-aiib-and-australian-participation-in-chinese-infrastructure-initiatives-20180814/?print=print. Accessed 9 Feb 2019.

Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Asia InstituteUniversity of MelbourneMelbourneAustralia

Personalised recommendations