The Role Of Foreign Aid In Shaping The Development Of African Countries A Case Study Of Kenya-china Relations

Abstract

Foreign assistance enables to boost economic development of states faced with challenges of development, infrastructure, climate change, poverty, agriculture and economic factors. Developing countries are the largest recipients of foreign aid in terms of loans. Africa is the largest bilateral trading partner with China and has become the destination hub for foreign aid. Chinese development assistance to Kenya has been through loans, technological Cooperation, Economic and trade agreements, promotion and Protection of Investment Agreement. However, the foreign assistance has brought about a number of problems such as increased loan debts, political rivalry between donor states, inhuman working conditions, facing sanctions, grabbing of job opportunities by donor states in recipient countries, corruption scandals, increased poverty levels and dependency. This study aims at examining Chinese aid policies and framework towards economic development in Kenya, determining the impact of Chinese aid on development in Kenya and establishing China’s strategic interests in Kenya. The study was guided by Realism, Marxist and Dependency theories to comprehend specific national interests which drive interactions in the international system. This study examined mixed method approach that combined both qualitative and quantitative research design. Data was collected using questionnaires from a sample of 384 respondents from the Ministry of Foreign Affairs, Ministry of Trade, Chinese officials and Academicians in Nairobi area. The data collected was analyzed using quantitative and qualitative methods. It is evident that, China uses strategic alliances with African countries to fight against the rival powers such as the United States. Forum on China-Africa Cooperation is a method used to control the behavior of African states and the aid policy strategy as a means for trade and investments and to expand its markets in foreign states. Consequently, the findings show that China established foreign aid as an international aid regime to control trade, foreign markets and use state commercial initiatives such as the Belt Road initiatives to realize its national security. Arguably, China loans are criticized for charging exorbitantly high interest rates attached to aid advanced to receiver countries. The Chinese communist ideology has influenced the shift of Africa’s dependence on capitalism. However, the change of ideologies is to enable Africa embrace look east policies for its own benefits. Therefore, various recommendations can be made based on the study findings. There is need for China to remove trade barriers in its domestic markets, to allow balance of trade with African countries. Also, China’s aid policies and frameworks should incorporate policies of democracy and good governance as they emphasizes on accountability and transparency of funds in recipient countries.