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The chapter focuses on the impact of one type of external influence, foreign aid, on both democratic transitions and consolidation. After first defining transitions and consolidation, the chapter discusses the various mechanisms through which external factors affect democratization, especially transitions. While foreign aid involves the transfer of financial and material resources from a donor to a recipient, there are three types of mechanisms via which such transfers impact democratization: the diffusion of norms and knowledge, the use of incentives, and the application of coercion. Hypotheses are delineated regarding the influence of development and democracy assistance on not only facilitating transitions, but also on avoiding breakdown and erosion, strengthening vertical and horizontal accountability, and promoting competitive party systems.
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