EU Development Aid towards Sub-Saharan Africa: Exploring the Normative Principle
2. Literature Review
2.1. Theories of Aid
Flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective, and which are concessional in character with a grant element of at least 25 percent (using a fixed 10 percent rate of discount). By convention, ODA flows comprise contributions of donor government agencies, at all levels, to developing countries (“bilateral ODA”) and to multilateral institutions. ODA receipts comprise disbursements by bilateral donors and multilateral institutions. Lending by export credit agencies—with the pure purpose of export promotion—is excluded.
2.2. EU Normative Power
In its relations with the wider world, the Union shall uphold and promote its values and interests and contribute to the protection of its citizens. It shall contribute to peace, security, the sustainable development of the Earth, solidarity and mutual respect among peoples, free and fair trade, eradication of poverty and the protection of human rights, in particular the rights of the child, as well as to the strict observance and the development of international law, including respect for the principles of the United Nations Charter.
The Union’s action on the international scene shall be guided by the principles which have inspired its own creation, development and enlargement, and which it seeks to advance in the wider world: democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, the principles of equality and solidarity, and respect for the principles of the United Nations Charter and international law.
Combating global poverty is a moral obligation. In such a world, we would not allow 1200 children to die of poverty every hour. Development policy is at the heart of the EU’s relations with all developing countries. The Member States and the Community are equally committed to basic principles, fundamental values and the development objectives agreed at the multilateral level.
The Union shall define and pursue common policies and actions, and shall work for a high degree of cooperation in all fields of international relations, in order to foster the sustainable economic, social and environmental development of developing countries.
The Union shall define and pursue common policies and actions, and shall work for a high degree of cooperation in all fields of international relations, in order to promote an international system based on stronger multilateral cooperation and good global governance.
A collective responsibility to uphold the principles of human dignity, equality and equity at the global level. As leaders we have a duty therefore to all the world’s people, especially the most vulnerable and, in particular, the children of the world, to whom the future belongs.
2.3. Motivations for EU’s Development Aid toward African, Caribbean and Pacific States
2.4. Domestic Factors and EU Aid Policy
3.1. Research Question and Hypotheses
3.3. Study Design and Analysis
- Political stability (PolStab): This variable is the “Political Stability and Absence of Violence/Terrorism” index . It captures perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically-motivated violence and terrorism. The estimate gives the country’s score on the aggregate indicator, in units of a standard normal distribution, i.e., ranging from −2.5 (weak) to 2.5 (strong governance performance).
- Carbon dioxide emissions (CO2em): We use the weighted average of the CO2 emissions (kg per 2000 US$ of GDP) index, which represents the carbon dioxide emissions stemming from the burning of fossil fuels and the manufacturing of cement. They include carbon dioxide produced during consumption of solid, liquid and gas fuels and gas flaring.
- Mortality rate of children under five years old (Mortality): Child mortality is claimed to be one of the most crucial of the EU and UN priorities within the framework of the Millennium Development Goals for improving health and welfare worldwide . We use the weighted average of the mortality rate, under-5 (per 1000) index, which shows the probability per 1000 that a new-born baby will die before reaching age five, if subject to current age-specific mortality rates.
- Foreign direct investment (FDI): FDI entails entrepreneurial issues of ownership and control over enterprises within foreign business environments. The OECD defines FDI as a private investment made for the purposes of acquiring a “lasting interest in an enterprise”. This implies “a long term relationship where the direct investor has a significant influence on the management of the enterprise reflected by ownership of at least 10% of the shares, or equivalent voting power or other means of control”. We selected the net outflows of FDI as a percentage of GDP. FDI is the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital and short-term capital, as shown in the balance of payments.
- Trade export volume (TrExpVol): The trade export volume index shows the volume of total products exported from Sub-Saharan-African states.
- Military expenditure (MilExp): Realists consider military force the most important power capability. Military expenditures as a percentage of GDP include all current and capital expenditures on the armed forces, including peacekeeping forces, defence ministries and other government agencies engaged in defence projects, paramilitary forces, if these are judged to be trained and equipped for military operations, and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel, operation and maintenance, procurement and military research and development.
- Natural resource rents (NatResRent): The total natural resource rents as a percentage of GDP is the weighted average of the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents and forest rents.
4.1. Descriptive Results
|Correlations||Aid flows||Rule of law||Political stability||Corruption||Participation and human rights||Sustainable economic opportunity||CO2 emissions||Mortality rate||% Primary education completion||FDI||Procedures to start a business||Trade export volume||Military expenditure|
|Rule of law||−0.043|
|Political stability||−0.222 **||0.803 **|
|Corruption||−0.093 *||0.891 **||0.693 **|
|Participation and human rights||−0.021||0.830 **||0.690 **||0.746 **|
|Sustainable economic opportunity||−0.021||0.943 **||0.795 **||0.862 **||0.902 **|
|Mortality rate||0.062||−0.633 **||−0.510 **||−0.644 **||−0.461 **||−0.674 **||−0.304 **|
|% Primary education completion||−0.121 *||0.647 **||0.531 **||0.584 **||0.578 **||0.718 **||0.325 **||−0.772 **|
|FDI||0.098 *||−0.022||−0.146 **||−0.021||−0.004||0.022||0.257 **||−0.023||0.161 **|
|Procedures to start a business||−0.007||−0.305 **||−0.149 *||−0.330 **||−0.333 **||−0.303 **||−0.025||0.156 **||−0.189 **||−0.109|
|Trade export volume||0.076||−0.088||−0.015||−0.114 *||−0.009||−0.094 *||−0.070||0.293 **||−0.264 **||−0.043||0.167 **|
|Military expenditure||−0.067||−0.132 *||−0.164 **||−0.007||−0.293 **||−0.229 **||0.196 **||0.035||−0.238 **||−0.086||0.234 **||0.036|
|Total natural resources rents||−0.050||−0.419 **||−0.248 **||−0.484 **||−0.450 **||−0.442 **||0.092||0.233 **||−0.186 **||0.208 **||0.237 **||0.118 **||0.029|
4.2.1. Correlations with Aid Flows
4.2.2. Other Correlations
4.3. OLS Regression Models
4.3.1. Overall Model
|Variable||Coefficient||95% CI a||p-value|
|Central African Republic||299.262||156.538–4410.987||<0.0001|
|Democratic Republic of Congo||787.600||630.072–9450.127||<0.0001|
|Republic of Congo||10.270||−180.455–2000.995||0.916|
4.3.2. OLS Regression by Regions
|West Africa||Central Africa||Eastern and Southern Africa||East African Community||Southern Africa|
|Intercept||282.482 *||−264.299||833.528 *||423.522||−157.351|
|Mortality||−2.8562 *||1.672||−7.827 *||−4.825 *||0.217|
|FDI||7.300 × 10−9||3.706 × 10−8||1.23 × 10−7 *||1.03 × 10−7||1.259 × 10−8 *|
|TrExpVol||0.081 *||0.283||0.198||1.942*||0.963 *|
|Burkina Faso||313.285 *|
|Cape Verde||−199.685 *|
|Cote D’Ivoire||135.865 *|
|Central African Republic||0.093|
|Democratic Republic of Congo||416.803|
|Republic of Congo||135.513|
5. Discussion and Conclusions
African, Caribbean and Pacific;
Cotonou Partnership Agreement;
East African Community;
Eastern and Southern Africa;
foreign direct investment;
gross domestic product;
gross national income;
International Monetary Fund;
Millennium Development Goal;
official development assistance;
Organisation for Economic Co-operation and Development;
Query Wizard for International Development Statistics;
Southern Africa Development Community;
United States of America;
World Trade Organization.
Appendix A: Panel Data Analysis
|fdi||−3.91 × 10−9||2.69 × 10−9||−6.61 × 10−9||2.82 × 10−9|
|b = consistent under H0 and Ha; obtained from Stata command xtreg|
|B = inconsistent under Ha, efficient under H0; obtained from xtreg|
|Rule of Law||−0.7361||0.6656|
|Participation and Human Rights||47.2345||17.1839|
|Sustainable Economic Opportunity (Overall)||48.3059||14.3669|
|CO2 Emissions (kg per 2000 US$ of GDP)||0.5123||0.4878|
|Percentage of Primary Education Completion||59.7830||22.7393|
|No. of Procedures Required to Start a Business||10.05||3.335|
|Trade Export Volume||165.7956||171.0897|
|Military Expenditure (% of GDP)||2.2406||2.8261|
|Total Natural Resource Rents (% of GDP)||12.0264||17.7715|
|Central African Republic||36.234||19.190|
|Congo, Democratic Republic||499.988||272.774|
Conflicts of Interest
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Bountagkidis, G.K.; Fragkos, K.C.; Frangos, C.C. EU Development Aid towards Sub-Saharan Africa: Exploring the Normative Principle. Soc. Sci. 2015, 4, 85-116. https://doi.org/10.3390/socsci4010085
Bountagkidis GK, Fragkos KC, Frangos CC. EU Development Aid towards Sub-Saharan Africa: Exploring the Normative Principle. Social Sciences. 2015; 4(1):85-116. https://doi.org/10.3390/socsci4010085Chicago/Turabian Style
Bountagkidis, Georgios K., Konstantinos C. Fragkos, and Christos C. Frangos. 2015. "EU Development Aid towards Sub-Saharan Africa: Exploring the Normative Principle" Social Sciences 4, no. 1: 85-116. https://doi.org/10.3390/socsci4010085