Dead Aid in Africa-another perspective

Observer · **Posted:** Sun Jun 21, 2009 12:36 am

Why Aid Is Not Working and How There Is a Better Way for Africa
by Dambisa Moyo

Quote:

In the past fifty years, more than $1 trillion in development-related aid has been transferred from rich countries to Africa. Has this assistance improved the lives of Africans? No. In fact, across the continent, the recipients of this aid are not better off as a result of it, but worse—much worse.

In Dead Aid, Dambisa Moyo describes the state of postwar development policy in Africa today and unflinchingly confronts one of the greatest myths of our time: that billions of dollars in aid sent from wealthy countries to developing African nations has helped to reduce poverty and increase growth.

In fact, poverty levels continue to escalate and growth rates have steadily declined—and millions continue to suffer. Provocatively drawing a sharp contrast between African countries that have rejected the aid route and prospered and others that have become aid-dependent and seen poverty increase, Moyo illuminates the way in which overreliance on aid has trapped developing nations in a vicious circle of aid dependency, corruption, market distortion, and further poverty, leaving them with nothing but the “need” for more aid.

Debunking the current model of international aid promoted by both Hollywood celebrities and policy makers, Moyo offers a bold new road map for financing development of the world’s poorest countries that guarantees economic growth and a significant decline in poverty—without reliance on foreign aid or aid-related assistance.

Dead Aid is an unsettling yet optimistic work, a powerful challenge to the assumptions and arguments that support a profoundly misguided development policy in Africa. And it is a clarion call to a new, more hopeful vision of how to address the desperate poverty that plagues millions.

http://www.dambisamoyo.com/deadaid.html

Watch her interview with the Canadian Broadcasting Corporation.

http://www.youtube.com/watch?v=pXWIUg30 ... re=channel
....
Dambisa Moyo was born and raised in Zambia, Southern Africa. She completed a PhD in Economics at Oxford University and holds a Masters from Harvard University. She completed a Bachelors degree in Chemistry and MBA in Finance at the American University in Washington D.C..
She worked at Goldman Sachs for 8 years in the debt capital markets, hedge fund coverage and in global macroeconomics teams. Previously she worked at the World Bank in Washington D.C.. Dambisa is a member of the Boards of Lundin Petroleum and SAB Miller.

Dambisa is a Patron for Absolute Return for Kids (ARK), a hedge fund supported children’s charity. She serves on the Boards of the Lundin for Africa Foundation and Room to Read, an educational charity.

Dambisa argues for more innovative ways for Africa to finance development including trade with China, accessing the capital markets, and microfinance.

Dambisa has also been offered a contract for another book, entitled How the West Was Lost, scheduled for publication with Penguin and Farrar, Straus & Giroux in 2010. This book examines the policy errors made in the US and other Western economies which culminated in the 2008 financial crisis. And discusses why financial and economic experts missed the signs of the credit crunch. It also explores the policy decisions that have placed the emerging world- China, Russia and the Middle East, in pole position to become the dominant economic players in the 21st century.

http://www.dambisamoyo.com/

XP12 · **Posted:** Mon Jun 22, 2009 1:59 pm

Handouts could only solve day to day survival but would not be sufficient to improve conditions of poverty stricken in African nations. The cycle of poverty continues to hinder a way to employment, education and ultimately wealth accumulation. After years of perpectual failure in improving their lot, African nations are waking up to the call for alternative solutions such as aid without strings attached, infrastructure development and job creation. Good luck!

smalltok · **Posted:** Tue Jun 23, 2009 3:47 am

Dambisa Moyo

Quote:

...the greatest myths of our time: that billions of dollars in aid sent from wealthy countries to developing African nations has helped to reduce poverty and increase growth.

In fact, poverty levels continue to escalate and growth rates have steadily declined—and millions continue to suffer.
.......drawing a sharp contrast between African countries that have rejected the aid route and prospered and others that have become aid-dependent and seen poverty increase,
.......overreliance on aid has trapped developing nations in a vicious circle of aid dependency, corruption, market distortion, and further poverty, leaving them with nothing but the “need” for more aid.

..... thus debunking the current model of international aid promoted by both Hollywood celebrities (like Bono) and policy makers (of western Europe, Canada and USA).

African leaders who receive and rely on foreign aid are supposedly more inclined to be "answerable" to western whims and fancies. However, once these foreign funds are deposited and re-transferred to "swiss accounts", many projects are shelved or short changed. Such leaders are thus more vunerable to corruption and dictatorial inclination. However, if these leaders have to rely on local monetary support (through taxation, etc), then they may perform in a more responsible manner. Failing to perform may let them to be voted out of office. Thus, the basic premise that I perceive from Ms. Moyo's thesis is that of building a strong local economy, private enterprises and investments which help to sustain an elected political power that is responsible and answerable to an electorate, which hopefully, is educated and responsible too!

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Dead Aid in Africa-another perspective

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