Friday, 10 September 2010

Foreign aid - counterproductive

Foreign aid consists largely of one government’s “helping” another government by beefing up its budget, increasing its power over the private sector, and multiplying its leverage over its citizens. As economist P.T. Bauer observed, there is an “inherent bias of government-to-government aid towards state control and politicization.” Foreign aid greatly increases the patronage power of recipient governments.

You don’t help a beggar by giving him money regularly, but by implementing all the necessary conditions, so that he will earn his own money.
Foreign aid kills Africa. Those institutions essentially provide and promise, money, food and goods already produced by western countries, which generates aid-dependency and doesn't help at all Africa's economy.
Plus, as Moyo pointed out, the system of aid and monetary donations painted a negative image of Africa, as poor, unstable and corrupt.

Actually, the main issue in these institutions is, there are no prospects of a long-term "rehabilitation". The foreign aid is a counterproductive "help system" which draggs down the Third World economic system. In fact, this short-term-help is nothing more than a long-term-trading, with developments of natural and mineral resources as a bargaining chip.
To affirm that the African nations do not need help, it would be a false over-estimation; Africa needs a good and lasting aid: (technologies, patents, licenses, knowledge, investments) everything which will create jobs and establish training, so that African nations will manage their own business.

First of all, an economic decentralization is essential, it would limit the government power in order to privilege individuals; and this, will put an end to dictatorships, overthrows, corruption. Then, the climate of stability will consequently permit the development of the middle class, free enterprise and the private sector's empowerment. And there will come prosperity and peace.

The solution proposed by Dr. Moyo is imperative for Africa, but somehow, I fear that her optimism has unfortunately overshadowed the dark African realities which remain the huge obstacle to capitalism and democracy (attitudes, primitive customs and traditional society, tribalism).

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