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Foreign Aid and Political Parties in Latin America

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Foreign Aid and Political Parties in Latin America Javier Gonzalez INAF 100 Professor James R. Vreeland What is the question? Political parties in: Latin America ... – PowerPoint PPT presentation

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Title: Foreign Aid and Political Parties in Latin America


1
Foreign Aid and Political Partiesin Latin America
  • Javier Gonzalez
  • INAF 100
  • Professor James R. Vreeland

2
What is the question?
  • Political parties in
  • Latin America
  • Donor countries
  • Right-wing/Left-wing
  • Influence on foreign aid
  • Both observed
  • Does the party of the executive power in
    recipient countries affect the amount of foreign
    aid that is received by the country?
  • Does the party of the executive power in donor
    countries also have an effect?

3
Introduction
  • Politics
  • The Right and the Left
  • Donor
  • Recipient
  • Rise of the Left in LA
  • Executive heads
  • Foreign Aid
  • 23 OECD-member donors
  • 17 LA countries

4
Background
  • Democratization
  • Reagan administration
  • Economic growth in LA
  • Exponential in the last decade
  • Poverty levels
  • Reforms in LA
  • Led by the Left
  • Economic
  • Leadership

5
Hypothesis
  • Donor nations do take political positions of
    recipients executive head into consideration
    therefore, they tend to provide more aid to
    countries that share similar political
    ideologies, and less to those that do not.
  • Donor interest
  • Political/Economic
  • Aid
  • Hegemony

6
Methods of Observation
  • Analyze
  • Party in power
  • Right-wing or Left-wing?
  • Employ
  • OECD
  • Foreign aid
  • World dataBank
  • GDP per capita
  • GDP annual growth
  • WB Database of Political Institutions
  • Right or Left?
  • Conclude
  • Observe
  • Correlations
  • Fallacies
  • Error

7
Observations
  • Recipient countries (17)
  • North and South America
  • Donor countries (23)
  • OECD members

Australia Austria Belgium Canada Denmark
Finland France Germany Greece Ireland Italy Japa
n
Korea Luxembourg Netherlands New
Zealand Norway Portugal Spain Sweden Switzerland U
K USA
Argentina Bolivia Brazil Chile Colombia Costa
Rica Ecuador El Salvador Guatemala
Honduras Mexico Nicaragua Panama Paraguay Peru
Uruguay Venezuela
8
Observations
  • 1960-2010 and 1990-2010
  • Why 1990-2010?
  • Political tendencies
  • Present political preferences
  • Donor ex.
  • Leans Right
  • Japan
  • Leans Left
  • Sweden
  • NP/Centrist
  • Finland
  • Recipient ex.
  • Leans Right
  • Colombia
  • Leans Left
  • Brazil
  • NP/Centrist
  • Mexico
  • 3 Categories
  • Leans Right or (1)
  • Left (3),
  • Or NP/Centrist (2)

9
Observations
  • Also observed
  • From 1960-2010
  • GDP per capita
  • Annual GDP growth


Recipient countries
  • Why?
  • Principal purpose for FA
  • Validity

10
Findings
  • Regressions
  • Right-wing donors
  • Not statistically significant
  • p-value of 0.62
  • gt .05
  • Left-wing donors
  • Not statistically significant
  • p-value of 0.85
  • gt .05
  • NP donors
  • Not statistically significant
  • p-value of 0.94
  • gt 0.05

11
Findings
  • Regressions
  • All donors (both Left and Right)
  • Not statistically significant
  • p-value of 0.87
  • gt 0.05
  • All donors GDP per capita
  • Statistically significant
  • p-value of 0.00
  • lt 0.05
  • All donors annual GDP growth
  • Not statistically significant
  • p-value of 0.13
  • gt 0.05

12
Conclusions
  • No political interest apparent
  • Donor nations
  • If any political interest, poverty is still
    prioritized
  • Question of hegemony
  • Recipient nations
  • Party has no effect
  • Finally,
  • Social misconceptions
  • Hypothesis not proved
  • Poverty and foreign aid
  • Parties and Foreign Aid
  • No correlation
  • Right, Left, nor NP
  • GDP and Foreign Aid
  • Correlation
  • More poverty more aid
  • Validates claims
  • Annual GDP
  • No correlation

13
Conclusions
  • The political ideology of the recipients
    executive head seems to have no effect on the
    amount of foreign aid received
  • Room for error
  • Overlooked observations?
  • Time period
  • Human rights
  • El Salvador
  • Venezuela
  • Military assistance
  • Anti-guerrilla/anti-narcotics
  • Brazil, Colombia, Mexico

14
  • Image sources, in order
  • http//3.bp.blogspot.com/-4qmNSMIHiyA/T32eArLad-I/
    AAAAAAAAAvo/amXSz8SM_Jg/s1600/Latin-America-Map.jp
    g
  • http//nimg.sulekha.com/others/original700/cristin
    a-kirchner-luiz-inacio-lula-da-silva-dilma-roussef
    f-2011-7-29-18-41-8.jpg
  • http//cryptome.org/info/obama-protect42/pict26.jp
    g
  • http//www.iamericas.org/images/stories/poverty_la
    tin.jpg
  • http//graphics8.nytimes.com/images/2009/01/26/tim
    estopics/bolivia_395.jpg
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