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Foreign Aid and Africa
How does Foreign Aid affect the
economic growth of African Nations?
James Mumma
Selection Process
• Selection question
• Case Studies:
– Post-Socialist Reformers
• Tanzania and Ethiopia
– Successful Reformers
• Uganda and Ghana
– Non-Reformer
• Democratic Republic of the Congo
Performance Question
• Do countries receiving aid experience
economic growth or recession?
• If they in fact experience growth is it the result
of the aid or other circumstances?
• What attributes of the receiving country make
the aid successful?
Methodology
• GDP per Capita to analyze growth rate of
economy
• Penn World Tables to gather economic data,
World Democracy Audit to rate liberties
• Compare case studies to see how different
classifications affect growth rates with aid
Data
Country
Aid level as
of 1997 ($
per capita)
World
Democracy
Audit overall
Ranking
Political
Press
Rights Civil Liberties Freedom
Corruption
Ghana
31.4
35
1
2
33
54
Tanzania
29.6
82
4
3
67
74
Uganda
26.3
88
5
4
75
88
Ethiopia
15.1
124
5
5
71
110
4.9
93
6
5
124
122
Democratic
Republic of
the Congo
Data
Mean Growth Rate of Real GDP per Capita
4
3
2
1
0
-1
-2
-3
Mean Growth
Rate of Real
GDP per Capita
Conclusions
• Corruption theory
• Further Research
– Data reaching farther back
• Obstacles
– Sick patient theory