(cont'd, content from Dead Aid)
According to author Dambisa Moyo, foreign aid to African governments (in addition to encouraging a climate for corruption) actually hinders the recipient country from moving ahead economically.
There's an accurate worldwide perception that African leaders have "crowned themselves in gold, seized land, handed over state business to relatives and friends, diverted billions to foreign bank accounts, and generally treated their countries as giant personalized cash dispensers." She calls it "rank corruption" on a "stupendous scale."
The "diverted billions" should have been invested in public goods and infrastructure. Instead, it's been a sort of jackpot for winning the power struggle and may go to the winner's armies who keep him in power. Ordinary wealth-creating businesses, meanwhile, entail more risk where the government is not accountable to the people.
Dr. Moyo did a TED Talk summarizing Dead Aid in 2009 which you can see here.
Showing posts sorted by relevance for query dead aid. Sort by date Show all posts
Showing posts sorted by relevance for query dead aid. Sort by date Show all posts
Wednesday, November 13, 2013
Monday, November 11, 2013
Aid to Africa
Dambisa Moyo grew up in the African nation of Zambia having well-educated parents. After getting degrees at Harvard and then Oxford, she worked for the World Bank as an economist and at Goldman Sachs. Quite the resume.
In 2009 she published NY Times best-seller Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa. Aid is not all the same: humanitarian aid is good but aid to governments has been hurtful, she says.
Since the 1940's, Western nations have given aid of different types to African nations amounting to about a trillion U.S. dollars (that's a thousand billion). So how much richer are the poor Africans after all this? Here is Dr. Moyo's answer:
"With an average per capita income of roughly US$1 a day, sub-Saharan Africa remains the poorest region in the world. Africa's real per capita income today is lower than in the 1970's, leaving many African countries at least as poor as they were forty years ago."
In 2009 she published NY Times best-seller Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa. Aid is not all the same: humanitarian aid is good but aid to governments has been hurtful, she says.
Since the 1940's, Western nations have given aid of different types to African nations amounting to about a trillion U.S. dollars (that's a thousand billion). So how much richer are the poor Africans after all this? Here is Dr. Moyo's answer:
"With an average per capita income of roughly US$1 a day, sub-Saharan Africa remains the poorest region in the world. Africa's real per capita income today is lower than in the 1970's, leaving many African countries at least as poor as they were forty years ago."
Thursday, November 14, 2013
Aid to change
(cont'd, content from Dead Aid -- reminder: the aid addressed here is not emergency and charity aid)
Herself an African, Dambisa Moyo wonders why the Western powers keep funneling vast sums to African governments when, " . . donors, policymakers, governments, academicians, economists and development specialists know in their heart of hearts that aid doesn't work, hasn't worked, and won't work." (pg. 46)
There could be many reasons all working together. Rich governments are able to exert some influence and control when they dispense cash like this. Then there's the aggressive pressure of celebrities who scold the public and their governments for not giving enough. There's even an estimated 500,000 people worldwide who are connected in some way to cash transfers to Africa and who are working to perpetuate their livelihood.
But is dependency really best for Africa? Of course not.
She asks the rhetorical question, are Africans genetically incompetent? The answer is no. Dr. Moyo would like to see the African continent wean itself from the destructive aid cycle toward creating wealth with methods that every developed nation has used, and which are available to African nations who can walk away from the drug-like appeal of aid.
Herself an African, Dambisa Moyo wonders why the Western powers keep funneling vast sums to African governments when, " . . donors, policymakers, governments, academicians, economists and development specialists know in their heart of hearts that aid doesn't work, hasn't worked, and won't work." (pg. 46)
There could be many reasons all working together. Rich governments are able to exert some influence and control when they dispense cash like this. Then there's the aggressive pressure of celebrities who scold the public and their governments for not giving enough. There's even an estimated 500,000 people worldwide who are connected in some way to cash transfers to Africa and who are working to perpetuate their livelihood.
But is dependency really best for Africa? Of course not.
She asks the rhetorical question, are Africans genetically incompetent? The answer is no. Dr. Moyo would like to see the African continent wean itself from the destructive aid cycle toward creating wealth with methods that every developed nation has used, and which are available to African nations who can walk away from the drug-like appeal of aid.
Thursday, October 31, 2013
Bono for capitalism
U2's Bono has lobbied for decades in the cause of more and more aid handouts from Western countries to Africa.
But some Africans (see this week's earlier posts) protest that aid has been hurting Africa more than helping. The charge is that corrupt leaders get their hands on the millions, and that average people see very little of it. Dambisa Moyo has spoken and written on this, one of her books being Dead Aid.
George Ayittey argues that not only does foreign aid produce corruption, but that the efforts of African people to create wealth are hindered in many ways (see Tuesday's post).
The amazing thing is that Bono has changed his mind. He's still a bit shocked by it, says "it's been a humbling thing for me," but he now says that aid is only a "stopgap."
At a conference about a year ago, he said, "Job creators and innovators are just the key, and aid is just a bridge." Redistribution of wealth isn't the answer. Society prospers when wealth is created. For stories about how that happens, see the topic "Create Wealth" on the right.
You've got to respect a person who changes his mind when he receives better information. Winners make corrections.
But some Africans (see this week's earlier posts) protest that aid has been hurting Africa more than helping. The charge is that corrupt leaders get their hands on the millions, and that average people see very little of it. Dambisa Moyo has spoken and written on this, one of her books being Dead Aid.
George Ayittey argues that not only does foreign aid produce corruption, but that the efforts of African people to create wealth are hindered in many ways (see Tuesday's post).
The amazing thing is that Bono has changed his mind. He's still a bit shocked by it, says "it's been a humbling thing for me," but he now says that aid is only a "stopgap."
At a conference about a year ago, he said, "Job creators and innovators are just the key, and aid is just a bridge." Redistribution of wealth isn't the answer. Society prospers when wealth is created. For stories about how that happens, see the topic "Create Wealth" on the right.
You've got to respect a person who changes his mind when he receives better information. Winners make corrections.
Wednesday, December 3, 2014
Bono & capitalism
continuing a re-post of last year's 3-day series on aid to Africa:
U2's Bono has lobbied for decades in the cause of more and more aid handouts from Western countries to Africa.
But some Africans protest that aid has been hurting Africa more than helping. The charge is that corrupt leaders get their hands on the millions - that average people see very little of it. Dambisa Moyo has spoken and written on this, one of her books being Dead Aid.
The amazing thing is that Bono has changed his mind. He's still a bit shocked by it, says "it's been a humbling thing for me," but he now says that aid is only a "stopgap."
At a conference about a year ago, he said, "Job creators and innovators are just the key, and aid is just a bridge." Redistribution of wealth isn't the answer. Society prospers when wealth is created. For stories about how that happens, see the topic "Create Wealth" on the right.
You've got to respect a person who changes his mind when he receives better information. Winners make corrections.
(originally posted 10.31.13)
U2's Bono has lobbied for decades in the cause of more and more aid handouts from Western countries to Africa.
But some Africans protest that aid has been hurting Africa more than helping. The charge is that corrupt leaders get their hands on the millions - that average people see very little of it. Dambisa Moyo has spoken and written on this, one of her books being Dead Aid.
The amazing thing is that Bono has changed his mind. He's still a bit shocked by it, says "it's been a humbling thing for me," but he now says that aid is only a "stopgap."
You've got to respect a person who changes his mind when he receives better information. Winners make corrections.
(originally posted 10.31.13)
Monday, November 21, 2022
Activist Bono 1
Bono's career in music and charity activism has spanned decades.
The poverty and suffering of Africa's people touched his heart, especially compared to the standard of living in the West. Millions of dollars were raised with his concerts (which included the famous Live Aid in 1985).
What happened to the millions? Some of it went to suffering people. But "the vast majority of the food [resulting from Live Aid] rotted on docks beside the Red Sea or [was] used as payment for loyalist army units."
Economist Dambisa Moyo published a book back in 2010 (Dead Aid) explaining how this kind of thing happens. As an African herself, her perspective is authentic and her message compelling: decades of "aid" to African countries is not doing the good that was intended.
A review of it on Amazon reads, "Moyo demolishes all the most cherished myths about aid being a good thing.”
(cont'd tomorrow)
Tuesday, November 12, 2013
Aid to corruption
(cont'd, Dead Aid)
Let's remember that the goal of all monetary aid is prosperity for the nation's people - not extravagance for their rulers.
Sadly, the result is often the latter. "Africa's first billionaire woman" is Isabel dos Santos, daughter of Angola's president. While 70% of the Angolan people live on $2 per day, she has managed to amass a fortune of 3 billion dollars.
How? Forbes has been tracing her climb to riches: "As best as we can trace, every major Angolan investment held by [Isabel] Dos Santos stems either from taking a chunk of a company that wants to do business in the country or from a stroke of the president’s pen that cut her into the action."
Moyo and George Ayittey and others believe that the millions of dollars of aid that flow into African nations is easily diverted toward the personal wealth of corrupt, uncaring, unwise leaders, leaving little or nothing for the prosperity of the people.
Let's remember that the goal of all monetary aid is prosperity for the nation's people - not extravagance for their rulers.
Sadly, the result is often the latter. "Africa's first billionaire woman" is Isabel dos Santos, daughter of Angola's president. While 70% of the Angolan people live on $2 per day, she has managed to amass a fortune of 3 billion dollars.
How? Forbes has been tracing her climb to riches: "As best as we can trace, every major Angolan investment held by [Isabel] Dos Santos stems either from taking a chunk of a company that wants to do business in the country or from a stroke of the president’s pen that cut her into the action."
Moyo and George Ayittey and others believe that the millions of dollars of aid that flow into African nations is easily diverted toward the personal wealth of corrupt, uncaring, unwise leaders, leaving little or nothing for the prosperity of the people.
Monday, April 13, 2015
Better
(cont'd)
Rock star Bob Geldof is changing his approach to Africa's problems. After decades of demanding aid from the people and governments of the West (and getting it), he now advocates business investment.
Health or famine crises call for humanitarian aid to ease suffering during emergencies. But the billions upon billions of dollars of development aid that went to government programs over recent decades was often squandered.
Instead of raising standards of living for the people, it more often funded armies and lined the pockets of dictators. This was Dambisa Moyo's point in Dead Aid.
"Bob Geldof, once the unlikeliest face of capitalism, has extolled the virtues of private equity for spurring development in Africa . . ."I have learned that private equity . . can be a major vehicle for positive change in this world."
Rock star Bob Geldof is changing his approach to Africa's problems. After decades of demanding aid from the people and governments of the West (and getting it), he now advocates business investment.
Health or famine crises call for humanitarian aid to ease suffering during emergencies. But the billions upon billions of dollars of development aid that went to government programs over recent decades was often squandered.
Instead of raising standards of living for the people, it more often funded armies and lined the pockets of dictators. This was Dambisa Moyo's point in Dead Aid.
"Bob Geldof, once the unlikeliest face of capitalism, has extolled the virtues of private equity for spurring development in Africa . . ."I have learned that private equity . . can be a major vehicle for positive change in this world."
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