Empowering developing countries: combating misinformation and correcting (mis)perceptions of foreign aid

How and under what conditions are misperceptions of foreign aid corrected or worsened? It is crucial to understand this question as misinformation and misperceptions regarding aid in recipient countries can impact voting behavior, aid effectiveness, and the perception of the state. However, our understanding of how information and misinformation influence perceptions, and how to correct misperceptions, remains limited. I argue that citizens who are highly confident in their beliefs are less likely to update, even if their initial responses are far from reality. Furthermore, I contend that accurate information and misinformation influence people to update their beliefs, but heterogeneous based on their confidence level. This dissertation examines the intricate interplay between information, misinformation, and individuals' confidence levels in shaping aid-related perceptions in aid-recipient countries by taking a mixed-methods approach. Drawing on two rounds of field research conducted in Kenya, Tanzania, and Uganda, alongside pre-registered large-N survey experiments in the corresponding three countries, this dissertation investigates how different types of information influence belief updating processes. Particularly in the survey experiments, subjects are randomly assigned correct and incorrect information (with truthful debriefing) about aid to learn about their relative propensity to change their beliefs. The findings reveal that both accurate information and misinformation prompt symmetrical adjustments in beliefs, irrespective of their veracity. Furthermore, the degree of belief updating varies significantly based on individuals' confidence levels. Highly confident individuals exhibit a lower propensity to update their beliefs. This suggests a nuanced relationship between confidence and belief revision, particularly in contexts characterized by high aid dependence. The findings of the dissertation underscore the importance of considering heterogeneity in confidence levels when assessing the impact of information on belief systems. By shedding light on the dynamics of misperception correction, this research contributes to a deeper understanding of how aid-related perceptions are established and corrected, thereby informing strategies for promoting informed decision-making in aid-recipient countries.