Abstract
The rise of non-traditional donors has brought significant changes to the composition of the international aid architecture. Since the end of WWII and subsequent economic prosperity and harmonisation of Europe, the Global aid regime was dominated by the so-called traditional donors until the turn of the 21st century when emerging economies became strong donors.
This thesis looked at how these new non-traditional donors have challenged the hegemonic muscle of traditional donors in the provision of aid in the developing world, especially on the African continent. The main aim of this thesis was to compare and contrast the lending practices of the IMF, World Bank (commonly known as Bretton Woods Institutions (BWIs) and China in the provision aid to African countries. By focusing on Angola and Zambia, the thesis looked at how these external donors implement their lending methodologies and what conditions influence their lending or lack thereof. It also outlined the areas where the external players direct their aid towards and what informs this decision. The thesis focused on the period between 2000 to 2020 because from the year 2000 China emerged as a direct challenge to the western powers in terms of aid provision to the developing countries.
Moreover, consideration was also given to look at whether the governments of Angola and Zambia prefer aid from BWIs or China. The study showed that when economic conditions are stable in terms of macroeconomic balances and debt sustainability the governments of Angola and Zambia opted for Chinese aid. However, when they faced macroeconomic imbalances and high levels of debt, they approached the BWIs for assistance. Heavy borrowing from China was also heavily influenced by the economic ambitions of the ruling parties in both case studies. The study concluded by focusing on the lessons learned and suggested that going forward the governments of Angola and Zambia will continue to borrow from BWIs and China due to the nature of their lending and the needs of countries.