Development Aid: Complementarity or Competition?

Abstract This chapter examines whether and to what extent development aid provided by traditional and non-traditional donors competes with and/or complements the development agenda of recipient countries. We focus on aid narratives and the nature of projects supported by donors, the perceived levels of ‘interference’ in domestic politics, the extent of policy space available, and the actual modalities of aid delivery. Based on primary and secondary data collected in the period 2016–2021, we find that while traditional donors have, on numerous occasions, withdrawn or suspended their aid, China is yet to do so. Non-traditional donors such as China often focus on ‘orphan’ sectors that are typically neglected by Western actors, but which are nonetheless important for socio-economic development in Malawi. Despite some competition, the activities of traditional and non-traditional donors in Malawi complement each other.