Ina Moeller, UNEP Brussels
"Dead Aid : Why aid is not working and how there is another way for Africa"
by Dambisa Moyo
When working for the United Nations, the term ‘aid’ and its associates are not uncommon. Humanitarian aid, poverty alleviation, development aid – just to name a few – are subjects which we are confronted with every day.
Money seems sometimes to be the solution to all problems, including to the Millennium Development Goals. No matter which of the eight objectives we look at, in the end it all seems to come down to more cash. Since the 1940s, providing aid has been the dominant paradigm of Western countries’ cooperation with developing states. We march for it, we work for it, we promote it – we even give concerts for it. But summing up the achievements, we see that it hasn’t made a big difference. In aid dependant countries, millions are still suffering from poverty and hunger, environmental degradation continues unchecked, governments and bureaucracies are drowning in corruption. And the proposed solution is of course – more aid.
According to rational thought, one would normally abstain from following a solution to a problem which has proved to be faulty for over 60 years. Nevertheless, the subject is so heavily emotionalized and politicized that it is nearly impossible to take a critical stance without running the danger of being stamped off for being cynical and politically incorrect. But if we really want to achieve a better, fairer world with all countries seeing themselves as partners on a mutual level, a change of strategy is called for.
In 154 pages, the Zambian author Dambisa Moyo takes a refreshing stance on the subject, describing not only the problems that we have encountered with distributing unlimited aid money to governments, but also providing a recipe on how to do it differently. Focusing on the continent of her origin, Moyo analyses what many before her have tried to do, asking why Africa remains behind the rest of the world without great prospects for the future. Her answer to this question is very simple: aid. Systematic development aid is the critical catalyst in a vicious cycle of dependency, corruption and poverty. Destroying all incentives for the creation and support of a working economy, it fosters graft and national inequalities, making the richest even richer and hampering the poor from achieving a sustainable and independent income.
Most of this we already know, although we do not dare speak about it openly. But the added value that Moyo’s book provides is a list of alternative solutions on the question of Africa’s development. Having studied economics in Harvard and Oxford, working for the World Bank and Goldman Sachs, Moyo puts an impressive CV on the table and brings a comprehensive economic expertise with her. In the main part of her book, she describes different ways of bringing a broken economy on track, ranging from bond markets over foreign direct investment to innovative financial instruments such as micro-credits and better management of national savings. Describing the potentials and the problems, she also gives solutions and methods on how to implement the ‘Dead Aid Strategy, referring to the fictive state of Dongo, which represents a typical aid dependent and bankrupt sub-Sahara African country.
Calling on both Western and African governments to finally take responsibility and change the habit of just signing and cashing multi-million dollar cheques, she proposes to stop the systematic flow of development aid within a period of five years. According to her argument, this will not make people poorer or stop children from going to school. On the contrary; it will put pressure on African governments to reform their economy, provide incentives for investment and a working financial market and therefore create jobs and opportunities for making a sustainable living. Added to this, she says that the private earnings from a thriving economy are much harder to steal than continually flowing aid money – “the capital markets may be forgiving, but not so forgiving as to be fooled by the same culprit twice”.
All in all, Dambisa Moyo’s book provides us with a new, constructive way to look at the problems of our world and a different approach to achieving the Millennium Development Goals. To quote Niall Ferguson, Professor at Harvard University, “this reader was left wanting a lot more Moyo and a lot less Bono”. As the next generation to take influence on the way we manage our world, it is our turn to show fibre and be courageous enough to use our own, rational mind. Everyone should be given the chance to make a living, independent on the volatile whims of the donors.
Looking at these problems from a different angle, acknowledging alternative paths of development cooperation and thinking twice before calling for the next multi-million dollar aid grant, destination uncertain, it is now our turn to make a difference – for the better.
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