The effects of corruption

on foreign aid
effectiveness in
Kazakhstan
Professor:
Prepared by:
Winter Semester 2023/24
 Table of content
● Literature review: Corruption
and foreign aid.
● Theory and data.
● Hypothesis.
● Indicators for the analysis.
● Recommendation
 Corruption
Upper-level of corruption
Corruption is defined by Cambridge
dictionary as dishonest/illegal behavior
exercised especially of public officials
allegations of bribery (Cambridge 2 levels of
Dictionary, 2023). This activity can involve corruption
different levels of government, starting from
top of the hierarchy to the lowest level of
authority. In such a way, corruption is a
Lower-level of corruption
threat for the government management.
Corruption and foreign aid
Corruption and foreign aid are closely related to each
other and the relationship between them is complex.
In certain cases, foreign aid may
It is true to state that foreign aid has the potential to inadvertently discourage recipient
enhance the quality of governance through various nations from generating domestic
means. Firstly, it can lead to an enhancement in the savings or implementing substantial
efficiency of civil servants. Additionally, foreign aid governance reforms to combat
corruption
can aid in reducing corruption within the
government.
Theory and data

Corruption cases in
Kazakhstan

Value of received
foreign aid by
Kazakhstan
Hypothesis

The following hypothesis can be formulated in relation to foreign aid and corruption:

(1) foreign aid increases the level of corruption;

(2) foreign aid is less effective in the presence of corruption.

Indicators for the analysis.
● The Corruption Perception Index (CPI) is considered the dependent variable in this study, as it has
been given by the Transparency International Agency since 2014.
● The Worldwide Governance Indicators (WGI) offered by the World Bank serve as an additional
metric for assessing corruption.
● The study would take into account many controlling variables, namely inflation, GDP, government
performance, democracy index, military spending, natural resources, and consumption
Recommendations
1) Enhancing the openness and responsibility of receivers can be achieved through the
establishment of "external accountability" systems, which involve bolstering civil society
organisations and conducting consultations with local groups.

2) The U.S government should provide ad on the basis of performance of the institution to
which funds are supposed to be sent. The greater the performance of the institution – the greater
is financial aid.

3) Enhance the transparency and accountability of their operations. This can be achieved
through the reinforcement and improvement of their current mechanisms for inspection, auditing,
and policy engagement with Kazakhstan.
Thank you for your
attention!