Africa News blog
African business, politics and lifestyle
Time to stop aid for Africa?
Far from being all bad news for Africa, the global financial crisis is a chance to break a dependence on development aid that has kept it in poverty, argues Zambian economist Dambisa Moyo, who has just published a new book “Dead Aid”.
Moyo’s book, her first, comes out at a time when Western campaigners, financial institutions and some African governments have been warning of the danger posed to Africa by the crisis and calling for more money from developed countries as a result. The former World Bank and Goldman Sachs economist spoke to Reuters in London.
“I’m not saying its going to be easy, I’m just saying that there is a real opportunity for policymakers to focus on coming up with more innovative ways of financing economic development. In a way the crisis actually provides the African governments with the situation where they cannot rely on aid budgets coming through from the West.”
Moyo believes more than $1 trillion in development aid over the past 50 years has only entrenched Africa’s poverty, distorted economies and fuelled bureaucracy and corruption. She sees alternatives such as encouraging trade – particularly with emerging markets – encouraging foreign direct investment, microfinancing for enterprise and seeking funds from capital markets.
Moyo is not discouraged by the fact that all those options appear more difficult in the current environment.
“It just means the onus is on African governments to come up with a more compelling story as to why African governments are overseeing real asset investment not derivative products we don’t really understand.”
“If you focus on traditional markets like Europe and the United States, you come to the conclusion that markets are really damaged and it’s very hard to raise money in those markets, but if you start to look towards China for example which has $4 trillion of reserves, all of a sudden you could see there might be another opportunity to do a bond issue in the Chinese market for example.”
“The model that’s coming up, that I’m proposing, is essentially one where Africa and Africans become equal partners with the rest of the world, not one where there is kind of a donor and a recipient, where Africans are kind of viewed as secondary citizens,” she said.
“There is no other system, whether a political system or a business system, that has stayed as the status quo for 60 years when we all know it’s not doing what it’s supposed to do, it’s not generating growth and it’s not alleviating poverty.”
Moyo is not worried about the impact of aid being taken away:
“It actually tends to pool at the top so it’s not like the average African is going to suffer. They don’t see the aid anyway. Essentially it‘s going to really affect the bureaucratic processes at the top and would really impact on corruption.”
“You could take me to country X in Africa and say ‘look at this girl here and she’s going to school because of aid’. Yes, that’s true but on a macro aggregate perspective these economies are not growing. They’re not growing fast enough to ensure that when that girl is done with her schooling she can find a job.”
Moyo is unimpressed by Western campaigners such as rock stars Bob Geldof and Bono calling for lots more aid for Africa.
“I fundamentally object to the notion that Africa needs more aid and I do think it’s time to have many more Africans speak out, especially the policymakers, because many of the policymakers actually don’t support aid and yet they stay in the background and they allow this money to come into the economy.”
“You very rarely see Africans on the global stage saying ‘actually we would like to have much more aid please’.”
“I do think a gap has opened up to allow other people to formulate a view on coming to the global debate and offering opinions as to what they think Africans want. But maybe we should start a website called ‘Ask the African’ because I think you might be quite surprised to find that people say ‘we want jobs’, I wouldn’t mind a flat screen television, I wouldn’t mind having my kids go on holiday sometimes …’”
Picture: Helen Jones photography
Comments RSS
Hi, I do not think it is good to stop the aid at this time. People will get angry and probably attach the government.The best way is to get the country better, try to get low-cost labor advantages and beat ‘China’ or other Asia countries.
I agree 100% with Dambisa Moyo. Last October, I recall arguing with an American called Dan about this issue of donor aid. I will reiterate what I said to him then:”The west should keep its aid because no nation in the world have being known to have developed based on donor largesse…Only a fraction of the aid pledged by Western governments (to the cheering of their domestic electorate) is ever recieved by African countries. In any case, donating aid to its former colonies is merely a feel-good exercise carried out by western nations. If there was any genuine attempt to help Africa then perharps a version of the 1947 Marshall Plan used in war-devastated Europe could have been rolled out rather than the donation of pittance that has no impact on ordinary people in the continent…”I went on to argue that Africa should ignore Western rantings over “Human Rights” which they don’t even respect themselves (Guantanamo Bay gulag, rendition flights, supporting pro-western arab dictators, etc) and strengthen trade ties with China, India and also among themselves.China presents to Africa an opportunity to do away with the Master-Servant economic relationship imposed on us by Western nations after independence. After all, in the 1970s, China built the Zambia-Tanzania railway free of charge at a time when Western leaders snubbed appeals by Kenneth Kaunda and Julius Nyerere to help fund that railway as a way of by-passing restrictions imposed by Apartheid South Africa.
I think the argument has some merit. It’s likely, though, that the best route is not to stop aid completely but to create a timeline for when Africa can being self sustenance.ricoexplainsitall.squarespace .com
Africa need more young leaders who are knowledgeable and experience on economic idealism. That is what we’re lacking. We have all the rich resources getting out of mthe country each day but yet hunging on aid which have never work since centuries ago but rather have drive the dark continent into more poverty.With corruption right, center and left. The old metality doesn’t jive anymore. I’m Ghanaian speaking from experience. look at the current government talking about the country is broke, what do you think investors will do, they shore off their investment out of the country.
I believe that the sentiment is nice, but a bit misguided. Stopping aid in and of itself with not necessarily help Africa. The other options of building the economy will. These options are present with or without aid, and in fact can be facilitated in part by aid. As an African who lives and works in China, I believe that quoting China’s reserves only betrays a vast misunderstanding of the country’s ability and willingness to replace western assistance. To counter that statistic, I could also mention that China has been in the top 10 recipients of development assistance until 2005, and is still in the top 20. More important than saying what doesn’t work, why not give more realistic options as to what can work.
I very much agree with Dabisa Moyo with one proviso. In the event of a catastrophe or famine like situation, then I think highly targetted and rapid response type aid is required.Having said that AID is clearly a racket. I have read that out of each $1.00 given in the West, less than 10 cents is received by the recipient. The rest goes on an overarching Bureaucracy both at home and in Africa. A great deal of it gets spent on brand new Prados and fancy expense account meals. Whole swathes of NGOs are set up to bilk the system. The more esoteric the program the more likely its being a facade.African Governments have been no better. Whole Bureaucracies wait for the opportunity to pounce on these inward aid flows.I really believe we have reached an inflexion point in so many ways. African citizenry [via the Phone and increasingly via the Internet – Broadband is coming and it will be revolutioniary – Its a leap frog from exchanging ideas by walking to the next village – to a World on Communication steroids. The entire Government and Governed dichotomy is set for practically revolutioniary change.Aid will be held under the spotlight and looked at holistically, it will be seen to be substantially ineffective.I would also add that Africa probably needs a fair application of free market principles to really gain serious traction. Microfinance probably represents the best risk adjusted lending anywhere I can think off. When its your lifeline, you pay things back. The African is entrepreneurial. You will find markets all over wherever you go on the Continent.And Dabisa’s point is well made. The world is more multi polar now. The Demand side of the African equation is not driven by just one monolithic Customer.We need to get a grip, think in a grown up manner and organise things. If we dont, conditions on the ground will become unbearable and Governments will start toppling like ten green bottles.Aly-Khan Satchu
I like the fact that Dambisa Moyo is so frank and blunt about what the real issues affecting economic growth in Africa are.It all reads as a sort of tough love policy that will require indigenous self-sufficiency and there is indeed a lot of truth in that.However to single out Zimbabwe as an example, certain countries will need an enormous amount of aid to give prospects of economic growth some kind of structure. Now that the expertise of white farmers are absent and an agro-based economy has been made fallow and overseen by under-equipped “new farmers” – western aid will definitely be required to re-build the economy.Her proposals however noble and accurate are not universally applicable to every African country.
A lifetime in Rhodesia and then Zimbabwe has honed my perspective on aid to Africa. As Rhodesia the country pulled itself up by it’s own boot straps. Without aid (and even under international sanctions), it became self-sustaining and a net exporter. Education, health, infrastructure, agriculture, mining and communications were hugely improved.Within twenty years, and despite massive aid, Zimbabwe became a basket case. Endemic corruption, incompetence and an inability to foresee consequences were the causes.There is a stark lesson here for those who care to find it!
If aid was not necessary it would not exist. You dont ban banks (including Goldman Sachs) because companies fail. You dont ban medicine or hospitals because disease continues. You dont ban schools because children dont learn as well as they should. Nor do you ban roads or airports because of accidents etc. You make things more effective. Those who argue against aid want to sell books to simpletons and their ideological sympathizers. Moyo was never a World Bank staff. At best, she was a temporary consultant. She has no credentials in development, economics, or finance, and scant experience to make her a credible voice, and she is certainly not an authority by any stretch of imagination.The frustration that it has not worked, and blaming aid, is akin to saying we should stop treatment because the patient is not recovering for whatever reason – lack of cooperation or ineffectiveness. Many naive commentators quote irrelevant examples of countries that have succeeded without aid and in the process betray their own ignorance. There is not a single country that has succeeded economically without aid, not even the United States. The advanced countries had colonies to plunder and military power to defraud their creditors with impunity (i.e. default on their debts) — all of them, without exception. They still have global economic hegemony to plunder and sustain their economies, only this time not always (but very often) through direct resort to military power. Talkers and writers without direct responsibility or experience with poverty and development assistance live in utopia – a world where all things wished were possible. They are often elitists who feel superior in their vaunted knowledge but without a single scar of experience or often even expertise in the issues they so eloquently write and talk about. More often than not, they are “successful” (merely lucky) in the private sector, got jobs in places like Goldman Sachs so they earn hundreds of thousands of dollars, and imagine it is becuase they are smart or the whole world could be likewise lucky. China, Korea, Japan, Europe, every country that has succeeded, has done so by using their own ingenuity, favorable trade policies, and outside assistance. They have been lucky as well, to be able to take advantage of their advantages when the opportunity came their way. Africa’s time will come. For a young person like the author, 50 years seems like a long time, but in reality it is a drop in the ocean of time. Africa is making progress, but its problems and burden of disease, wars and outside interference cannot be underestimated. It is time to make aid more effective and smarter, not to gut it.
This is a very enlightening approach. I agree with Ms. Moyo. The results of aid are apparent. It is addictive. This not only occurs in Africa, but in developed countries where aid is given to regions which are not thriving, it also becomes addictive.Aly-Khan makes an excellent point when he states only about 10 cents out of each $dollar actually reaches the recipient. Big dollars frequently go expensive flights, hotels, meals etc. It is a culture of entitlement with many. Especially the UN and their agencies.Mike Beresford also makes excellent points. But wait Mike, when Mugabe is no longer the leader in Zimbabwe the world of donar agencies will flood it with money not respecting Ms. Moyo wise point of view. And Aly-Khan, the expensive hotels in Harare will be fully booked with donars using 90% of their money.
Dambisa’s opinion makes complete sense to me. Aid is what helps many of the worst rulers survive – even look at Mugabe. It is not him who is feeding his people. If you take away the aid then people will have to make the right decisions and take their own responsibilities instead of looking to foreigners to do that for them. Even in other cases the money from donors that goes into projects allows bad governments show they are delivering something while they steal the money that should have been spent on those very same projects. We have been independent in most African countries for two generations or three generations. We say we are equal with all others and then abase ourselves for handouts. Yes if you are addicted to crack cocaine it is hard to break the habit but the way to do it is not to prostitute yourself more it is to recognise the problem and stop and work hard to build a new life.
Stop aid to Africa? Here’s an opinion from the U.S.:Well, I have seen first hand, in the U.S., what hand-outs will do to those who do NOT want to work. Welfare in the U.S. is a hand-out, for sure, mostly it seems to encourage those who are lazy to keep their hands out for more money, food stamps, and to continue having babies. Some in the welfare system are wise enough to see the trap and actively seek to improve themselves in any way they can and leave welfare behind.Now, with an entire continent in dire need of economic repair, I do believe that microfinancing is a self-directed way of breaking the chains that bind the recipient of welfare/aid and of becoming self-reliant and moving on with one’s life. The individual/family will start a business, hopefully be able to feed themselves and send their kids to school all while building their business and gaining business skills at the same time! Microfinancing is ingenius; it is a temporary loan which must be paid back – unlike continued welfare/aid, which only encourages economic and psychological dependency.All the points made above are valid and interesting. I think aid is necessary, however, in times of immediate danger, such as the horrific crimes and destroying of villages in Darfur and The Congo. These atrocities are absolutely abhorrent. It is amazing to me that all the countries in the world cannot find (!) the money, labor, helicopters, food, clean water, etc. to give to these people in dire need, let along protection in the form of U.N. troops (?). The janjaweed and others are slaughtering many people weekly and have been for years, and while I approve of microfinancing, I do think aid is absolutely critical in dire circumstances like Darfur and The Congo.Why is Africa so corrupt (not unlike Bush/Cheney – but I digress). It seems to me that continually giving aid to corrupt governments rewards their behavior. Duh!Perhaps the manner in which aid is given is the issue. Microfinancing reaches people directly and bypasses corrupt government/bureaucracy/officials. Microfinancing seems so brilliant and obvious for the people of Africa and elsewhere.Cheers all. And more folks from Africa, keep writing in (what does the “average American” really know in the U.S. about Africa but what we hear/read in the news anyway)?Peace all.
I agree with Dambisa Moyo. I think outright charity whether at an individual level, or national level, only makes people dependent, and effectively hinders their growth. The only way to help the African countries would be to give them the African people opportunities to grow. If the western countries really want to help, they should offer more scholarships to African children in western schools and universities. The Job market in other countries should be more open towards African immigrants, and financing should be available to African entrepreneurs. Probably, the western governments can offer more incentives to businesses which setup operations in the African continent. They should be helped by giving them work and not throwing alms at them.
All those here saying that Africa can do without aid are naïve in the extreme. To say so plays into the hands of those who would like to wash their hands of Africa entirely. Imagine if the amounts that are being spent on saving banks could be spent in Africa now. It would go a long way to end poverty and disease.
i dont think aid should stop . but that each contributing government should do projects of bussiness land improvment dig wells aid in farm equipment building supplies for houses roads and elictricity. do not give money but products and services over seen by a public notice from a trusted news sorce. if these things were done in ernest improvement and learning would follow .
I somewhat agree with some of the arguments. But the problem in Sub-Saharan Africa is investment. Where the investments will come from? The west does not want to invest in the region, because of its instability. Coming from Colonization, westerner’s investments would just be like another form of colonization, and this time it will be a financial one at first, then it will move to political. The cycle will restart again. That is why, Chinese investments are creating frictions in some of Europeans capitals. Let be honest, SSA needs investments, but where the capitals will come from?
Every so often, the rich in the west trot out a token African to make some such argument; one which coincidentally concedes exactly with the Free Market absolutism which passes for macroeconomic theory on Wall Street. One which concedes exactly with the enrichment of the richest Western interests. Such theories have led to to destruction of African civilization, from the commercial slave trade to mercantile colonialism to full blown imperialism to neocolonialism. Farmers in West Africa today live in an economic system in which their food crops have been undersold for 40 years by subsidized American exports, and now are driven into wild fluctuations of price by the Western Commodity Market speculation.That we should now listen to the deep thinkers who brought us the deregulatory causes of our current financial crisis when it comes to sending meager food supplements to the poorest nations of the world is either absurd or simply evil.
I absolutely agree with Moyo. One more reason why we Africans are very poor is our selfishness and lack of a strong will. We chose to have 2 to 3 wives and 20 to 30 children just because we want a large farm.Why not employ people from the comunity and pay them to do our work rather than use and abuse our children on these farms.We are so weak that we prefer to rely on the west for everything.Have you ever imagined Africa Without the West.And yet we say we are independent.Only we Africans can save the continent. We do not need the West since we have abundant natural resources, We must all wake up and use our God-given brains!
We absolutely must stop aid to Africa. Let’s start to take care of some the people in this country. We are going through some hard times right now and we should keep all aid over here.
I am from Ethiopia .i am 24 and i got my B.A in economics.i feel the same that those westerners should not be giving money to africa.it is just forcing us to stay in vicious circle of poverty.because:-most of the time this money will not be put in to developmental projects but to protect the government onpower.only small fraction of it will be used for funding development.-it has tought africans the spirit of dependency;not todepend on themselves and look around so that they can come up with more creative way of funding their own developmental projects.some times, it is only when you run out of help around you that you will start searching your abilities deep inside.Thank You!
I get so much irked when I hear African leaders beg for aid money rather than exploring trade avenues with the rest of the world. It’s important for Africa to realise that the continent will never prosper through aid.My experience particularly in Tanzania where I live is that aid money is always swindled by greedy civil servants at the expense of poor people. That means most of aid money ends in the hands of these guys,knowing that donors will give more money even when it is evident that the money is abused. I had an opportunity to attend a high level meeting on Africa needs at the UNHQ and I was pissed off to hear African leaders condemning developed nation for not giving them enough aid. I have read books on African problems, interviewed world leaders and thought so hard about African problems and my conclusion is that nobody does the right thing when it comes to solving Africa problems. It could be that African politicians and policy makers stopped thinking long time ago.
Yes.the Africa continent has for long be reliant on foreign aid which has indeed killed the economic creativity of its leader and breed corruption in high place.it will be indeed good if such aid we be directed into infastructural development and manage by the aid providers not the state government.
Africa does not need anymore aid. Its this aid that has retarded growth in most of the continent. As an Media person I have increasingly seen how information and use of technology can reshape the lives of people. Take the example of Mobile Money transfer; before the product only 6 million Kenyans had bank accounts. Now a year later over 5 million mostly un-bankable kenyans are transfering money around the country with new services and products mushrooming. Now even gorvenment is thinking of using the service.All africa needs is not sympathy but level playing ground to trade, get information for its fast growing and curious youth. 8 years ago westerners were asking what possible use would africans need a mobile food. well now I not only pay my bills with it, I can get the best prices for my product and where it can be sold fast
You are so very right Moyo…”Africa needs TRADE and not AID”! Aid facilitates total dependency and by that notion underdevelopment, corruption, poverty and brain decay! Look all around the continent and pick a nation, all you see is brain drain or brain decay. African countries have sufficient arable land to promote agriculture, several intellectual professionals whether trained in or outside the continent, mineral resources, oil wells and conducive climatic conditions that can set the African Continent into harmony!
Here again. Giving money is not the issue. How it is given, debt payment structure, interest rate and so forth are the issues. Believe it or not, its not just a debt, because it comes with conditions or strings attached to it. Yes of course accountability is the key, and corruption is the reason why we are lagging behind. Aid, Debt and the likes are what SSA can use as a starting point, requiring a new leadership in the region. Not just the dancing, celebrations, and speeches that are common practice in the region. A change and a radical change is what we need.
Paying the interest on debt by developing countries tends to be more than the aid they receive. The best way to help developing countries is cancel their debt, and if future loans must be made to them, to make those loans interest free.
We should continue to give money but put it into better resources instead of the african governments. http://www.mnlakeplace.com
To John: stop aid to Africa and keep it here (the U.S., I presume)? You have got to be kidding-certainly not for those suffering in Sudan and The Congo! Africa is imploding because of exploitation so succinctly put by Thomas Miles and many who wrote in their comments. Those who are starving and in need of clean water should receive it, even if we call that aid. That said, we, in the west, must teach others how to fish, so to speak, instead of giving others fish perpetually.To Carl: yes, building roads, schools, installing electricity, etc. will help enormously in Africa. I do think however, that individual Africans and communities/villages should be shown and taught how to do this themselves, building self-reliance, thereby learning skills that will serve them for generations, thereby decreasing dependency on outsiders.To Andy H: yes, we in the U.S. seem to be throwing money around in the name of bailouts, little of which the “average American” will ever see or feel the effects of. However, giving this amount of money to another country in the form of aid, I believe, will never reach the individual in need; the money will stay in corrupt hands while the people literally starve to death, as is happening now, and has been for decades, in Africa. The aid/money must be used constructively 1) to protect those in Darfur and The Congo, to be used in projects, ie., building water wells, pumps, roads, schools, etc., and not given, per se, to those in government. Caveats must be attached to aid, like Obama is doing now with executives in corporations-all handouts/money must be accounted for.To Yajur: “education” is quite a western ideal and one I believe, although may help African children, particularly girls, is still a western ideal. Getting a college degree does NOT mean intelligence or being well paid for one’s labor. I, for one, have a college degree and earn only about .50 cents to $1.00 more/per hour than those who do not have a college degree! Sending African people to western universities further “reduces” the African to westernization. Why not build schools in Africa? But this still reeks that thinking western ways are best. What is education? I would rather learn to build a fire, fish with a net, build huts, construct buildings by hand using local resources (mud, straw, sand – adobe style, for example), farm land, understand irrigation, install water pumps, cisterns, etc. – something practical – than get a college degree. Anyone can study electricy in college, but I would rather learn first hand how to install it in my village (if I were to live in one) than spend four years learning about electricity faraway from my village if my village needed it now. See? College degrees truyl are a very American and British form of nobility and elitism; farmers and those who labor by hand are the ones who feed and build countries. Yes, engineers and architects are needed but the rest of humanity, which is far greater in numbers, should not be dismissed because they do not have a degree! Trust me, degrees are all about elitism!To Juldeh: yes, Africans must learn to take care of themselves and their lands. I am concerned however about your comment (and many others elsewhere) about Africa’s natural resources. The entire continent of Africa has been exploited for hundreds of years because of “resources” – whether this is human (as in slavery) or “natural” – minerals, and now oil (by China, who could care less about African people; China is only in Sudan for oil). I am concerned that if Africa did choose to stop receiving aid from outsiders, that those in government in Africa will still be corrupt, and will exploit its continents natural resources nonetheless. How will this ever stop? Also, selling natural resources to westerns/China will still be done by corrupt people in Africa, who will only continue to exploit local Africans. Seems to be a perpetual cycle…Finally, reappropriating aid in the form of infrastructure and mircofinancing, holdly everyone who receives the loan, accountable, seems to be the best way to go. Giving aid to “governments” does not work, as we all can see. Africa will continue to implode until the majority of Africans stand up against exploitation and take matters into their own hands for the good of the local people.For westerners, see the excellent documentary: Taking Root, The Vision of Wangari Maathai – about one woman-and then many others – who started planting trees in the 1970′s to help bring back forests that the British destroyed in the early 1900′s when they invaded…). Wangari Maathai did not wait to receive aid to plant trees – by hand! Now, 35 million trees have been planted since the 1970′s – talk about taking matters into one’s own hands. The people of Kenya joined together to overcome many problems that outsiders/deforestation caused…. a lesson for us all!
Hi, stopping aid for afrca now is like condamning a large part of african people to death but in the other way its must be done so that african leaders can start thinking about how to feed their population because right now the only thing they know is to buy weapons to keep them long in power, they always have money to buy weapon but not to buy food. something need to be done so that one day african people can be able to produice their own foods and why not medical product as well. if only africa had to buy those aid i think most of the african country would prefere to invest their money in some key production sectors like agriculture or research to feed and keep their population in good health because they know that will boost their economy than use the money to by aid from europe or america or elsewhere.
The problem with Africa is not the aid that comes from the West, it is Africans (leaders or people) that can not use it to the same standard as Europe and Asia used theirs.
As a visitor who grew some 10 critical younger years living in Africa and as an expat for many more having the opportunity to be a part of developing African industry in some small way, through numerous regions of Africa, across varied levels of desperation… from the downward spiral of the Congo’s and Sudan’s to artificial oil enriched areas of extraction…we really must listen to this lady more carefully! Ms Moyo is way more accurate in her clinical protestations than many from the broader version of the west will likely want to hear or believe. The normal mechanisms of aid I feel aren’t really the true body of her claims or warnings…it’s the unchecked disease itself that troubles her so…she profoundly understands by the fact that she’s forever recovering that disease herself. Because aid dependence like she says …is an addiction from father to son mother to daughter…deeply imbedded like cultural DNA…. the insidious part of this addiction being its unabated development and institutionalized support for over 6 decades of routine injections from afar. None of us from outside can truly speak intelligently about the depth of this disease today. We can only speak of the death and desperation of specific and reliably revolving situations or symptoms upon which the outsiders have for decades developed and nurtured immense industry and profit in the never ending servicing of desperation. None of us not even the ones who honestly by humanitarian contact with such desperation for no profit, believing they are rightfully a little more part of the African fabric;…they all are only visiting like the rest of us who love the place and can never really get to the deepest understanding of this now-cultural and very blinded way of African existence.Ms. Moyo is possibly so accurate; the statements she makes might well suffer another routine addiction of our times,…the addiction of carefully not being read by those who could affect change if so moved to do so!
The U.S. does not need to give Africa aid of any kind. We need to just leave them alone and let them figure out their own problems. Not only is the aid destructive but the U.S. government has too much debt to give out aid.
I can tell you personally how our country has become a wasteland since the fall of whites from power. They were good managers and farmers and brought wealth and prosperity and above all, enough food for all. But we were foolish and jealous of them, and like children we banished them and stole their lands, and gave the monster Mugabe the power to destroy us and our country. And is South Africa under the blacks any better? We seek refuge there and are murdered by those who should welcome us as brothers. The whites were never so cruel.I love Zimbabwe. But I weep with regrets for Rhodesia.
Fair trade, helping nations to develop their own entrepreneurial class, teaching people to catch fish instead of handing them out a bucketfull every once in a while, is tough: It takes life-long commitment, sacrifice of self-interest. It means raising future competitors. Whereas couple billions of dollars collected at tear-jerking concerts and donated by governments or people -who have been smart enough to exploit the opportunities provided by the eternally imperfect markets, and have played a big part in creating such non-level markets in the first place- is basically a very convenient conscience-laundering operation, which does nothing to CHANGE (yes we can?) the rules of engagement in the world marketplace.
From the comments from some people on this forum, I get the impression thatAfricans are regarded as helpless people and that chinese involvement in africa is “evil” and “colonial”. This is far from the truth as much of what appears in the Western media is pure exaggeration or half-truths.EDUCATION:Renee speaks about education being a “western thing”. This is not true at all. We do have a lot of good schools in Africa. In Nigeria for instance, we have numerous thousands of primary and secondary schools and 92 universities (34 privately owned, 31 state government -owned and 27 federal government-owned). Despite problems of equipment and funding in government-owned universities, we still manage to produce churn relatively good graduates. National literacy rate is 69% in Nigeria.)AFRICAN BUSINESSES:The problem here has nothing to do with “teaching Africans how to run businesses”. Africans are already an enterprising people who run businesses. In Nigeria, we have thousands of small and medium scale businesses surviving in a nation where entreprenuers have to source capital from friends and family since banks rarely loan money to ordinary people and contend with infrastructural decay. Despite the odds, many of these types of businesses have grown big and expanded to employ thousands of people. Nigeria’s Nollywood is an example of a small scale business started with personal finance in 1992 by individual entrepeneurs which has now grown into a 250 million US dollar per year industry, employing thousands of people. I am sure that there are similar examples of success in other African countries. In fact, the hold-backs african enterprises are experiencing can be traced directly to infrastructural decay in the various african nations and UNFAIR trade dealing by Western nations.CHINESE INVOLVEMENT IN AFRICA:Some people don’t understand that Chinese involvement in Africa goes beyond mere engagement of the much stereotyped “corrupt governments” in Africa (let us pretend that countries like Botswana and Ghana with relatively low corruption do not exist).At a “micro-level”, chinese involvement means that individual enterpreneurs like those in the industrial clusters of Eastern Nigeria are now able to form partnerships with their chinese counterparts who bring badly needed technical know-how and equipment at a price these [african] enterpreneurs can afford.At the “macro-level”, I welcome the official Chinese government engagement with African nations because China is willing to provide much needed infrastructure to our people in exchange for natural resources. I do not see any “colonisation” here unlike what the jealous and domineering Western nations will have us believe. In fact, I see Africa able to negogiate deals with China as equal trade partners in contrast to the master-servant trade relationship that exists between the continent and the West. It cannot be “colonisation” if China is partly funding a 400MW power station in Ghana worth 600 million dollars in exchange for 38,000 tonnes of Ghanaian cocoa beans or funding and building railways and roads in Ethiopia. Yes there are issues with Sudan, Zimbabwe and D.R. Congo, but there are at least 48 other african nations where chinese involvement is positive and welcome.CONCLUSION:African nations must continue economic engagement with China, stop asking for useless “aid” packages and ferociously wrestle the West for fair trade just like the Indians and the Brazilians do at international trade talks.
China partly funding and constructing the 400MW power station in Ghana was reported by Reuters on Sept 3, 2007 and the Ghanaian Times: http://www.newtimesonline.com/index.php? option=com_content&task=view&id=8915&Ite mid=181
Remove the blood sucking devil from the north and you will see a lot of good in Africa while making it on it’s own.
Western aid is a racket that is designed to benefit the donor rather than the recipient. Hence, Aficans continue to grow poorer despite the aid.What Africa needs is free and fair trade; for Western coutbries to stop putting African farmers out of business through their unfair and illegal subsidies; for Western companies to pay a fair price for African commodities….
I have not read “Dead Aid”, but was not too surprised to read that someone who has been through Harvard, Oxford and the World Bank came out saying the things Dambisa Moyo does, in very much the same way that William Easterly says them.It’s a simplistic, and quite an attractive argument to liberal economists, yet hardly a new one. The fact that it still grabs headlines like this is testament to how ill informed we are about economics in general. People have been saying for decades that aid doesn’t work, and yet all of the successful emerging economies are aid graduates. The green revolution in Asia was the result of aid, and it allowed productivity to reach the point where there was an investable surplus.In order to reach the threshold from which they can “kick start” their economic development, purchasing power in the average sub Saharan economy has to grow by 300% per capita, and even then, there are considerable structural obstacles of which economists are all aware.Of course no one is decrying the need for fairer trade regimes, and the need for trade to be made to work for Africa, instead of for the importing countries. That, however, is no argument against foreign assistance; assistance is needed in order to make trade work more fairly, and to get those economies to the point where they can generate surpluses for trade and investment. To do that, the basics of health, education and agricultural productivity are preconditions which are not being tackled by outside investors, and cannot be adequately funded by impoverished governments.Yes there are many failures in the way that assistance is delivered and the efficiency of aid in general; but that is no argument against its existence, it is an argument against poor delivery, and no one argues for poor delivery anyway.Everyone, except those involved in it, deplores corruption. Corruption however is not the preserve of African governments, and certainly not exclusive to foreign assistance. There are plenty of people taking 20% stakes in businesses all over the world by virtue of their political position; that it is more obvious where the majority of the population have less than $2 a day to live on is not a valid argument for not trying to bring those poor above the poverty line, just as the fact that it is sometimes better concealed in more developed countries is no excuse for accepting it. Do not ignore the significant role that developed economies play in keeping developing countries exactly where they are, and the role that developed businesses play in corruption.That Africa has failed to perform since independence is a failure of aid. A failure to provide enough, consistently and of the right quality. Maybe if Dambisa Moyo was to return to Zambia and take up the challenge of bringing about development in the region, she might remember more uMunthu and tone down on some of the right wing free market ideology.
I wouldn’t want to pretend that this is a very scientific evaluation of opinion on such an important subject, but significantly over half of the comments here appear to back Dambisa Moyo’s opposition to development aid. Fewer than one fifth are clearly against.
As an African, I can honestly say that Western aid has killed many Africans. Western aid usually goes to the corrupt dictator, he buys weapons and suppresses human rights, kills his people, lives very rich life. Just look at Meles Zenawi of Ethiopia. He has massive army yet almost every year 8 milion people need food. He is deceptive and has become overtly confident in playing the West for fools and taking their money.
Yes i totaly agreed with the lady who wrote this article.Look what happenned to Somalia for over 18 years the warlord are getting more money and there is no peace.When it come to the democraric country like my own coountry Somaliland there is no money and no aid.Please i am asking to western world to stop the money Stop the money
Its time for we African stop for waiting for handout from the west..we know how to kill eachother we have to find our own solution .
Stop the aid please stop. Africa don’t need any aid it need peace it is timeAfrican to thing and go foreword
You are right Dambisa, there comes a time in a nation or individual or community when economic aid is no longer a right but an option. Over 50 years we have depended on the west so much that it has developed into a chronic economic syndrome. Its time, and 2009 is a critical barometer, if Africa cannot see the tides approaching and ready herself, then the future is disastrous.
Well, farmers in the west will be out of business and that wont be good the economies of the developed world if all of a sudden they have in hunger else where and in addition there is competetion. so Poor hurngry countries will have to thrive at the expense of thriving farmers in the developed world. It will only be when the poor specially africans find in their heart caurage and bravery to once and for all persue to develop their food production stead of being bussy on killing each other and waiting for a handout.Of course utill the likes of Mabutu are at the helm in leadership, africa’s chances of success is indeed gloomy.
I totaly agree with DAMBISA AID FROM WEST IS HERTING the continent big time the west care fore thier people even if takes to distroy others they brig their surpluses to distroy African farmers. they bring some thing thy call it expatrates that take $80 of evry $100 they bring as aid for salry.
She’s right 100%. Aid hurts more then it helps. The only people who benefit Aid corrupted African head of states. And most aid comes back to the donors one way or the other. So the African people can and have been leaving without foreign aid for centries.If those who really want to help Afirca need to directly invest on farmers, education and infrastructures.
How increadibly short sighted are the last 8 posts !!!Is it really ONLY the corruption that eat those AID money, or are there more damaging factors ?First of all, WHERE are those corruption benefits stored ? The western banking system, especially the dark spots of FISCAL PARADISES !!!Then, some of Africa’s countries have been at war for a VERY LONG time … WHERE do they ultimately find the weapons and ammo ?Top 4 arms dealer in the world : Europe, USA, China, Russia (not sure about the order, though) … do we (Europe, US and Russia) REALLY NEED to produce those weapons (instead of focusing on way more FULFILLING activities as research and ECOLOGICAL development) ? Then, we may gradually stop AID and hoping to look ourselves in the mirror with pride..Unfortunately enough for development POSSIBILITIES, there is a BIG STOP-SIGN down the road … intellectual property (Patent laws in particular), which really came in effect only after Word War 2, a principle that makes worldwide scientific advance way more difficult than say the middle ages, as before inventing, you have to lawyer-up to the WORLD’s patents records … it definitely is a broken model in the path to a bright future !The world is in balance … unfortunately, the current state is QUITE FAR from EQUILIBRIUM !!!
Aids are alms to Africa and Africans. There is a saying that goes thus: “Alms-giving encourages idleness”. I am a Yoruba from South-West Nigeria, in Yorubaland, begging for alms or recieving same is generally a sign of laziness, and therefore disgraceful. Another saying goes: “The hands of the giver stays at the top, that of the taker stays at the bottom”, this is both spiritual and psychological. Taking aids is disgracefull to Africa. It demeans. Africans are naturally hard workers. If the aids is stopped ordinary Africans will never know because it never gets to them in the first place. Secondly, the motive behind aids is to retain the Western controls over Africa and Africans. It is just like the civilisation and developmental theory of colonization, Africans was developing at their own pace before europeans came, they were civilised in their own way. The reality is that a $100 worth of aids will eventually cost Africa $1000,000 in the long run because of the in-built booby-traps. It is a method of subtle exploitation. The best thing to happen to Africa this century will be the stoppage of aids. Average Africans do not appreciate it because it holds us in servitude. It is a source of contaminants to Africa economies. Like the writer observes, it is high time we start managing what resources is available to us without the corrupting outside aids.