Do aid projects from World Bank and China impact state legitimacy differently? An exploratory analysis in Tanzania

Abstract

This study examines how aid activities by the World Bank and China, which take two competing approaches to building state capacity, affect a recipient government’s effort to build state legitimacy vis-à-vis its population. The study operationalized legitimacy drawing on Levi’s ‘quasi-voluntary compliance,’ and empirically analyzed the two approaches’ effects at the local level. The study used the Afrobarometer survey conducted in Tanzania in 2014 and geocoded datasets for aid projects. Chinese aid, characterized by its ‘Developmental State’ approach, was associated with higher projection of state legitimacy at local level. Meanwhile, the World Bank’s aid, which encourages building state legitimacy in a ‘contractarian’ way, did not demonstrate such a correlation, and there was limited evidence that the co-location of projects from both donors may condition the effects of the World Bank aid.