Wednesday 4 February 2009

Dead Aid: Time to turn off the aid tap?

I have just been listening to a fascinating interview featuring the author of a new book called Dead Aid. The book is written by a Zambian economist, Dambisa Moyo. Her basic argument is that aid is easy money. If governments had to rely upon private financial markets they would become accountable to lenders, and if they had to rely upon taxation they would become accountable to voters. Aid is like oil, enabling powerful elites to embezzle public revenues. She catalogues evidence, both statistical and anecdotal.

The Independent has a review of this book.
I am sure Dambisa's point of view is shared by many people. Although she focuses her firepower on government to government aid I would suggest that aid given to NGOs and other charities should be brought under the same spotlight. It is time for African governments to become responsible and start looking at life without the donor community. India and China seem to have prospered without perpetual dependence on foreign aid.

Donor aid has also led to the development of a very lucrative NGO industry in Zambia. It seems like a prerequisite for any donor funded project is a fleet of expensive 4X4 vehicles and endless seminars and conferences. Why?

There is also a responsibility on donors to make sure that their aid is not misused. They are accountable to their taxpayers and also owe it to the poor and vulnerable people of Africa to ensure that this aid is put to good use.
The PANEL

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