Pushing Back or Backing Down? Evidence on Donor Responses to Restrictive NGO Legislation

Abstract As authoritarianism has spread globally, government efforts to stifle civic space have increased dramatically. Among the most alarming tactics has been the spread of restrictive laws targeting NGOs. While such laws threaten the core objectives of many foreign donors, they have become especially common in aid-dependent nations. How do foreign donors react to this assault on their local and international implementing partners? On the one hand, democracy-promoting donors might push back, ramping up support for advocacy in defiance of draconian measures. Alternatively, when aspiring autocrats make it difficult to work with local partners, donors might back down, decreasing support for democracy promotion. Testing these arguments using dyadic data on aid flows, an original data set of NGO laws, and a variety of research designs, we find that the donors most committed to democracy promotion back down in the face of restrictive NGO laws, reducing democracy aid by 70 percent in the years after laws are enacted. Our findings suggest that donor behavior creates strong incentives for backsliding governments in aid-receiving countries to use legislation to crack down on civil society.