Foreign aid is often seen as a tool for promoting stability and development in conflict-prone regions. However, research suggests that under certain conditions, such assistance can inadvertently exacerbate political violence. When external funding flows into fragile states, it may distort local power dynamics, incentivizing armed groups or corrupt officials to capture resources. In some cases, aid can prolong conflicts by financing warring factions indirectly or weakening accountability mechanisms. Evidence shows that in areas where governance is weak, the influx of aid can lead to increased competition over resources, sometimes triggering violence. The effectiveness of aid therefore depends heavily on the political context and institutional frameworks in place. Without careful oversight, humanitarian support meant to alleviate suffering might instead contribute to instability.
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When aid kills: How foreign assistance can fuel political violence – CEPR
When aid kills: How foreign assistance can fuel political violence CEPR