Stephen Knack
Does Foreign Aid Promote Democracy?
World Bank
aid potentially contribute democratization several ways 1 technical assistance focusing electoral processes strengthening legislatures judiciaries checks executive power promotion civil society organizations including free press 2 conditionality 3 improving education increasing per capita incomes research shows conducive democratization study provides multivariate analysis impact aid democratization large sample recipient nations 19752000 period using two different democracy indexes two different measures aid intensity evidence found aid promotes democracy result robust alternative model specifications estimation techniques including use exogenous instruments aid results similar analysis confined postcold war period 19902000 despite reduced dependence us donors prowestern authoritarian regimes among aid recipient nations