Working Paper

China and the World Bank - How Contrasting Development Approaches Affect the Stability of African States

Kai Gehring, Lennart C. Kaplan, Melvin H. L. Wong
CESifo, Munich, 2019

CESifo Working Paper No. 7856

China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while WB projects strengthen democratic values.

CESifo Category
Public Finance
Public Choice
Keywords: development models, development aid, stability, conflict, repression, World Bank, China, Africa, geolocation
JEL Classification: H770, N900