The Effects of Disbursement of Foreign Aid to African Countries

101 Pages·2015·1.49 MB·English

UNLV Theses, Dissertations, Professional Papers, and Capstones
12-1-2014
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Jemilat Kike Thompson-Odoom
University of Nevada, Las Vegas
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Thompson-Odoom, Jemilat Kike, "The Effects of Disbursement of Foreign Aid to African Countries: A
Case Study of Ghana and Ivory Coast (Cote D'Ivoire)" (2014). UNLV Theses, Dissertations, Professional
Papers, and Capstones. 2305.
http://dx.doi.org/10.34917/7048624
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THE EFFECTS OF THE DISBURSEMENT OF FOREIGN
AID TO AFRICAN COUNTRIES: A CASE STUDY OF
GHANA AND IVORY COAST (COTE D’IVOIRE)

By

Jemilat Kike Thompson - Odoom

Bachelor of Arts in Political Science
Kwame Nkrumah University of Science and Technology
2009

A thesis submitted in partial fulfillment of the requirements for the

Master of Arts -- Political Science

Department of Political Science
College of Liberal Arts
The Graduate College

University of Nevada, Las Vegas
December 2014
We recommend the thesis prepared under our supervision by
Jemilat Kike Thompson-Odoom
entitled
The Effects of Disbursement of Foreign Aid to African Countries: A
Case Study of Ghana and Ivory Coast (Cote D’Ivoire)
is approved in partial fulfillment of the requirements for the degree of
Master of Arts - Political Science
Department of Political Science

John Tuman, Ph.D., Committee Chair
Dennis Pirages, Ph.D., Committee Member
Tiffany Howard, Ph.D., Committee Member
Marcia Gallo, Ph.D., Graduate College Representative
Kathryn Hausbeck Korgan, Ph.D., Interim Dean of the Graduate College

December 2014
ii
ABSTRACT

The African continent has received aid from developed countries for decades. This
thesis seeks to examine the impact of foreign aid to developing countries using
Ghana and Ivory Coast (Cote D’Ivoire) as case studies.

The study will contribute to the existing body of knowledge by examining the
effectiveness of foreign aid. The study is based on data gathered primarily from
development partners and donor countries. Indicators such as mortality rate,
tuberculosis and access to sanitation facilities were used to test the failure or
success of foreign aid in Ghana and Ivory Coast. Corruption perceptions from both
countries were also analyzed to find the collation between corruption in African
countries and the effectiveness of aid.
iii
ACKNOWLEDGEMENTS

I would like to express my deepest appreciation to my Committee members
especially my committee Chair Dr. John Tuman, for the outstanding support.
Without all your guidance and persistent help this dissertation would not have been
possible.

I would also like to thank the academic and administrative staff of the Department of
Political Science for the various roles they have played in contributing to or
supporting me throughout my journey in completing this dissertation.

Most of all, I would like to thank my family for their support, feedback and
premature graduation presents. Your faith in me kept my faith in myself alive –
particularly when the deadlines and conflicting responsibilities made this dissertation
seem like an impossible task.

iv
TABLE OF CONTENTS
APPROVAL PAGE .......................................................................................................... ii
ABSTRACT ...................................................................................................................... iii
ACKNOWLEDGEMENTS ............................................................................................ iv
TABLE OF CONTENTS ................................................................................................. v
LIST OF TABLES .......................................................................................................... vii
LIST OF FIGURES ....................................................................................................... viii
CHAPTER ONE ............................................................................................................... 1
Introduction ......................................................................................................................... 1
Statement of the Problem .................................................................................................... 2
Ivory Coast aid profile ......................................................................................................... 3
Ghana aid profile ................................................................................................................. 4
Research Question ............................................................................................................... 6
Relevance ............................................................................................................................ 7
Organization ........................................................................................................................ 8
CHAPTER TWO ............................................................................................................ 11
Review of the Literature and Study Design ....................................................................... 11
Theories Concerning the Determinants of Aid .................................................................. 11
Theories and Literature Concerning the Effects and Effectiveness of Aid ........................ 12
Methodology ..................................................................................................................... 26
CHAPTER THREE ........................................................................................................ 30
Introduction: Aid and Aid Effectiveness in Ghana and Ivory Coast ................................. 30
Total Aid Flows: Trends.................................................................................................... 30
Aid Programs from Specific Donors to Ghana and Ivory Coast........................................ 33
Ghana: The United Kingdom as a Donor .............................................................. 33
Ghana: The United States as a Donor .................................................................... 39
Ivory Coast: France as an Aid Donor .................................................................... 42
Ivory Coast: The United States as an Aid Donor .................................................. 53
Aid from International Organizations to Ghana and Ivory Coast: The WHO ................... 56
Aid Effectiveness in Ghana and Ivory Coast: A Comparison ........................................... 59
Indicators of Aid Effectiveness: Health and Telecommunications ...................... 59
Indicators of Aid Effectiveness: Press Freedoms and Democracy ........................ 66
Explaining the Variation in Aid Effectiveness: The Role of Corruption ........................... 68
Perceptions of Corruption in Ghana ...................................................................... 69
Perceptions of Corruption in Ivory Coast .............................................................. 73

v
Explaining the Variation in Aid Effectiveness: The Role of Aid Design .......................... 76
Conclusion ........................................................................................................................ 78
CHAPTER FOUR ........................................................................................................... 80
Conclusion ........................................................................................................................ 80
Findings and Policy Implications ...................................................................................... 80
Limitations of the Study .................................................................................................... 84
Concluding Observations .................................................................................................. 85
APPENDIX A – TABLE 2 .............................................................................................. 86
1. Agriculture .................................................................................................................... 86
2. Health ............................................................................................................................ 87
3. Education and social services ....................................................................................... 87
4. Governance and Democracy ......................................................................................... 88
APPENDIX B - ABBREVIATIONS ............................................................................. 89
REFRENCES .................................................................................................................. 90
CV ..................................................................................................................................... 97

vi
LIST OF TABLES

Table 1 Summary of some DFID Aid Programs in Ghana ........................................... 36
Table 3 Mortality rate, under 5 (per 1,000 live births) ................................................... 60
Table 4 Incidence of Tuberculosis (per 100,000 people) ............................................... 60
Table 5 Improved Sanitation facilities (% of Population with Access) ......................... 61
Table 6 Mobile cellular subscriptions (per 100 people) ................................................. 61
Table 7 Freedom House Ratings for Ghana, 2002-2012 ................................................ 65
Table 8 Freedom House Ratings for Ivory Coast, 2002-2012 ....................................... 66
Table 9 Perception of Extent of Corruption in Different Institutions in Ghana, 2012 ...... 70
Table 10 Comparison of Overall Perceptions of Corruption, 2008-2011 ...................... 75

vii
LIST OF FIGURES

Figure 1 Aid Flows to Ghana and Ivory Coast, 1960-2012 ..................................... 32
Figure 2 Foreign Aid from the United Kingdom to Ghana 1960-2011 ......................... 35
Figure 3 France’s Aid Disbursement to Cote d’Ivoire, 2007-2011 .......................... 42
Figure 4 Aid Disbursement from France to Cote d’Ivoire 1960-2011 ..................... 50
Figure 5 WHO Health Aid Commitments and Disbursements, 2000-2010 ............. 56
Figure 6 Per capita Total Expenditure on Health, 2000 – 2010........................................ 57
Figure 7 Density of physicians (per 10 000 population) in Ghana and Ivory Coast ..... 57
Figure 8 Perceptions of Government Effectiveness in Reducing Corruption ................ 70
Figure 9 Perception of Extent of Corruption in Different Institutions ........................... 71

viii
CHAPTER ONE
Introduction

The African continent has been plagued with poverty for decades. Developed
countries, in response, have been giving aid to many African states. This aid comes
to African countries in three major forms.
First, aid comes to African countries through funding of projects in various
sectors. For example, aid is provided to fund projects in education, health,
agriculture, and energy. Second, aid is provided to African countries through
technical support, where donor agencies provide funding to hire the services of
consultants, researchers, and trainers to augment the existing skills in Africa to
design and implement specific projects. Third, aid is provided for budget support.
Generally, foreign aid is provided to recipient countries through development
partners. Development partners are either bilateral or multilateral donors. The
bilateral donors include countries such as Australia, Canada, Denmark, France,
Germany, Italy, Japan, Netherlands, Spain, Switzerland, United Kingdom (UK),
and United States of America (USA). The principal multilateral donors consist of
The World Bank, African Development Bank (AfDB), European Union (EU), Arab
Bank for Economic Development in Africa, Department for International
Development (DFID), United States Agency for International Development
(USAID), Danish Development Agency (DANIDA), and Japan International
Cooperative Agency (JICA). Multilateral donors also include several United
Nations agencies, such as, Food and Agriculture Organization of the United Nations
1