Assessment of effectiveness of Chinese aid in competence building and financing development in Sudan

S. Nour

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Abstract

Assessment of effectiveness of Chinese aid in competence building and financing
development in Sudan
by S. Nour

[abstract]
This paper discusses the effectiveness of Chinese aid for competence
building and financing development in Sudan using new primary data at
the micro level. We find that Chinese aid and loans to Sudan caused
mixed positive-negative impacts. The positive impact is competence
building and providing alternative complementary sources of finance to
complement domestic capital and financing development projects; the
negative impact is increasing Sudanese debts to China. We find that the
effectiveness of Chinese aid to Sudan is undermined by offering aid tied
to trade, FDI and the importance of oil to the Chinese economy. Despite
the global economic crisis, China has continued to offer tied aid to
maintain access to oil in Sudan. Despite a long period of economic
sanctions, Sudan was able to grow thanks to the robust and increasing
intensification of special economic relations with China which relaxed
the development finance constraint. From the perspective of new
approaches to financing development, our findings imply that even when a
country is facing binding political and economic sanctions, it can still
proceed with competence building and finance a high growth strategy if
it is endowed with natural resources and a partner that is in need of
such resources. In addition to aid in the form of financial capital,
Chinese aid and development assistance include technical assistance in
the form of scholarships for training and education. The outcome of
Chinese aid directed towards capacity building in Sudan implies that the
majority of scholarships provided for specialization fields of
Engineering, followed by Science and related fields, and finally Arts,
Social Science and related fields respectively, and provided for PhD
degree, followed by MSc degree, research and training respectively over
the period (1999-2013).

Keywords: Competence building; financing development; aid effectiveness;
China; Sudan.
Original languageEnglish
Place of PublicationMaastricht
PublisherUNU-MERIT
Publication statusPublished - 1 Jan 2014

Publication series

SeriesUNU-MERIT Working Papers
Number014

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