Chinese Aid in African Context; A Path to Development or a Path to Conflict?

This study examines the relationship between Chinese aid money (both state supported ODA and private aid from Chinese corporations and individuals) and the development of state institutions and intrastate conflict. Such aid may be a source of competition for control of state institutions and resources, by various ethnic groups. A dark side potentially exists as Chinese aid and the presence of Chinese workers and experts has possibly increased tensions between population groups and between population groups and the state in Africa. Insensitivity to the contextual background of Africa has led to few attempts to study the relationship of Chinese aid to sociopolitical developments. In contrast to previous studies of Chinese aid in Africa - Olu Ajakaiye, Ken Banks, Edward Miguel, and Dambisa Moyo - we examine the political and social view rather than a strict economic analysis. We explore whether or not Chinese aid directly or inadvertently adds to tensions and the likelihood of civil conflict through the use of time-series modeling. Our results indicate that Chinese aid is a net good for Sub-Saharan African countries