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China's breakneck economic growth has been accompanied by an expanding development finance agenda. Many have hypothesized that China is undermining the West's drive to promote good governance globally, and in Africa in particular, by predominantly distributing money to poorly governed countries. This paper explores whether the determinants of Chinese development finance in Africa differ from those of Western countries. It finds that Western countries send more development finance than China to better governed African countries—those with lower corruption levels, better democratic outcomes, and a better human rights track record (though only the latter two have a negative relationship with Chinese development finance in absolute terms). This paper also finds that bilateral trade and UN voting alignment have a stronger impact on China's development finance than that of Western countries and that China allocates more development finance than the West to richer and more resource-dependent African countries. [ABSTRACT FROM AUTHOR]

The past 50 years of Africa's history have been blighted by a lack of good governance, which has hindered economic growth and political stability. The continent continues to maintain weak states which are clearly evident in the persistent corruption, unconstitutional behaviour, inefficiency, waste and unnecessary bureaucracy that remain widely practised. However, owing to emerging markets such as China and India that have promoted foreign direct investment in developing countries, a lot of speculation has arisen regarding the impact of the Forum for Cooperation between Africa and China on continental governance. The speculation tends to focus on whether the multilateral trade agreement between Africa and China will be mutually beneficial, or promote bad governance practices such as corruption. This paper argues that in order for any multilateral agreement to become economically beneficial in Africa, the continental elites must first implement good governance best practices. Furthermore, the onus is on the African states, not their regional or trading partners, to implement economic institutional change. [ABSTRACT FROM AUTHOR]