THE EU’S ALLOCATION OF DEVELOPMENT AID – NORMATIVE OR STRATEGIC? - An analysis of aid distribution to African countries in relation to the inflow of Chinese FDI

Abstract

Based on the European Union’s self-image of being a normative power and a ‘force for good’ in the world, this thesis examines the EU's role as an international aid donor. The EU’s development policy has developed during the last decades, and in line with its normative self-image the EU has established a set of idealist criteria that is meant to guide its aid allocation to developing countries. However, the EU’s role in the global arena has been questioned, and the EU has been accused of not always acting according to its normative self-image. As the EU’s role in the world and as a partner to third countries is being scrutinized, new powers with pronounced strategic motives are stepping in as an alternative partner for developing countries. China’s influence on the global arena has grown exponentially the last few decades, and it has become an increasingly important partner to developing countries. This analysis uses panel data to examine how the EU’s self-proclaimed normative aid allocation to African countries are affected by the inflow of Chinese FDI to these same countries. The results presented indicate no significant relationship between Chinese FDI and EU aid allocation. However, both idealist and strategic motives are showcased in significant control variables.