Political Leaders, Economic Hardship, and Foreign Aid Allocation

Abstract

While political leaders’ role in foreign policy choices has received increasing scholarly attention, surprisingly less is known about how they affect the allocation and distribution of official development aid. This study examines how the material background of political leaders influences their aid allocation strategies in donor countries. We contend that leaders with economic hardship experience distribute more foreign aid than those without such experience. Through socialization, leaders with economic hardship experience become more supportive of public good provisions that address problems related to poverty and inequality. Resultantly, they exhibit more favorable attitudes toward development assistance programs targeting developing countries. We find that political leaders who experienced economic difficulty in their youth are likely to provide more foreign aid, especially social and economic infrastructure aid, than leaders without such experience. By introducing the political leaders’ role, this study contributes to the literature on the interaction between domestic politics and foreign aid.