Fahamu (Oxford)

Africa: Should Aid Come to an End?

book review

Dambisa Moyo's argument that aid is detrimental to Africa's development has made her a star on the literary and academic circuit, writes Ronald Elly Wanda, but it isn't true. Moyo's recent book "Dead Aid", Wanda says, makes no 'correlation between Africa's development and its accompanying social and historical conditions' nor does it explore the possibility that 'exogenous factors have and continue to hamper development in Africa'.

If Moyo's argument that Africa's culture of dependency is to blame for its woes was true, writes Wanda, the economies of countries which have received virtually no foreign aid - such as Eritrea, Mauritania and Somalia - should have improved notably, which is not the case. The real problem, Wanda argues, is not aid itself but the way in which it is structured and delivered.

'Stars come and go,' said William Goldman in Adventures in the Screen Trade. And Goldman was right. Lately in the African literary and development circle, Dambisa Moyo with her new book Dead Aid: Why aid is not working and how there is a better way for Africa, has become one such a 'star'. The book, not to my surprise, has received a very warm welcome within the western academic circuit that is usually unreceptive to African intellectual contributions.

For instance, one Oxford University don (Moyo's former tutor both at Oxford and Harvard) reviewing for the Independent wrote: 'Dambisa Moyo is to aid what Ayaan Hirsi Ali is to Islam. Here is an African woman, articulate, smart, glamorous, delivering a message of brazen political incorrectness: "Cut aid to Africa"'.

Another well-placed British reviewer continues the flattery: 'Moyo cannot be dismissed as a crank. Educated at Harvard and Oxford, she heads the Africa strategy of a major bank. Nor can she be dismissed as a renegade who has rejected her roots. She is deeply wounded by the lack of development in Zambia, her home country'.

Michela Wrong, (a former FT reporter) whose recent book-launch I attended at SOAS, also thinks Moyo is right. Her book It's Our Turn to Eat: the story of a Kenyan Whistleblower is based on narratives of her friend John Githongo, the former Kenyan anti-corruption tsar who sought sanctuary in Britain in 2005 after uncovering high-level corruption in the post-Moi regime. Since its publication, Kenyan bookshops have refused to stock or distribute it, citing fears of persecution and prosecution by the incumbent Kibaki administration.

Reviewing for The Spectator (a right-wing publication) Wrong said: 'The assumption that foreign aid is an unalloyed good runs so deep in the guilt-ridden, post-colonial West, people are often shocked to discover that many Africans, far from showing appropriate gratitude or begging for more, regard these contributions with both distrust and suspicion'. Concluding: 'No wonder this book is causing a stir'.

But should Moyo be branded a star simply for causing a stir? Having read her submission, forgive me, I think not.

Truth, reality and objectivity, it is often argued, mark out the straight road of knowledge and put us on our guard against all deviations. As an analyst with a Pan-African posture, whenever reading socio-political texts on Africa, I often ponder on whether the writer managed to make a correlation between Africa's development and its accompanying social and historical conditions. Thus Dead Aid was no exception.

In spite of her 'impressive' statistics, Moyo makes no attempt to either mention or entertain the possibilities, as did Dr Walter Rodney in his classic How Europe underdeveloped Africa, that exogenous factors have and continue to hamper development in Africa. For instance the conditionalities imposed on the so called 'aid' given to Africa; the culture of protectionism practiced by US and EU and safeguarded by the World Trade Organisation (WTO); the ongoing core (Western world) and periphery (Africa) relations that constantly disadvantage Africa; and last but certainly not least, the subsequent mind-set of International Financial Institutions (IFIs) that subordinates Africa.

For many Africans, particularly women, children and those working in the informal sector, the social impact of Structural Adjustment Programmes (SAPs) has been excruciatingly felt. Designed by the International Monetary Fund (IMF) and the World Bank (WB), they have been the frame-work for economic and social policy in Africa since the early 1980s. Instead of reducing poverty, they have impoverished already poor 'wanainchi'(Africans) both in the rural and urban areas.

The donor community's insistence that African countries liberalise their markets through privatisation of public enterprises and downsizing of the civil services have made corruption endemic in Africa. According to a recent UN report, Western business interests are at the heart of corruption in Africa, the report estimated that government supported companies pay bribes worth $80 billion a year in order to secure long and short-term contracts and other concessions from African governments and at the expense of the voiceless and already poor 'mwanainchi'.

With recent British broadsheets biblically citing Dead Aid and continually amplifying statements such as '...having received almost a US$1 trillion in the past 60 years in foreign aid, yet Africans are still worse off than they were during the independence years...', one somehow gets the impression that Dead Aid has become a fitting kit for the West to justify aid reduction to Africa.

Moyo's prime argument that Africa's culture of dependency is to blame for its woes (although explicable) is simply not true. Because were we to reverse that argument then one should expect the economies of countries such as Eritrea, Mauritania, and for the last 18 years anarchic Somalia, which have received virtually no foreign aid at all, to have improved notably. This, needless to say, has not been the case.

Therefore aid in my view is not the problem. The way in which it is structured and delivered is the real problem. The conditions imposed on the aid are so many and in most cases not the right ones. That said, aid alone cannot solve Africa's many problems, it must go hand in hand with reforms of international trade and financial rules in order to ensure that wanainchi have a fair chance of benefiting from the wealth of resources that Africa has aplenty.

The timing of Dead Aid is, to say the least, neglectful, especially given the recent US and EU banking systems collapse and the inevitable global financial crisis that has followed, the severity of which will be felt more by nearly 40 million poor wanainchi as they swell the ranks of abject poverty. According to Action Aid, the crisis is likely to cost Africa US$400 billion in the next three years alone.

It is this reason amongst others that drove most of us at a recent alternative G20 Summit in London under the banner 'Real Financial Fairness', to call on richer Western nations to maintain their pledge to increase aid to 0.7 per cent of their respective Gross national incomes (GNIs) as agreed by the UN, (instead of the current 0.2 per cent that they occasionally give) in order to help poor wanainchi in Africa cope with the impact of the current economic crisis.

After all, how about the immeasurable capital flight that has left and continues to leave Africa everyday? Under the current circumstances, Samir Amin's 'de-linking' hypothesis becomes more and more relevant and appealing. African leaders ought to start entertaining this possibility with a degree of seriousness if African economies are to become truly independent of aid.

Ronald Elly Wanda is a political scientist based in London.


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Comments 1 to 5 of 7 Post a comment

  • curious
    May 22 2009, 09:22

    The problem with this article is that it assumes that all African countries have the same: problems (although we share certain common problems e.g. curroption), amount of mineral resources, man power, or political stability. Therefore, it makes it difficult for me to say that Aid should stop for all the countries in Africa.

    The best way is to analyse each country individually. I know of one country I believe should stop receiving Aid and that it Nigeria. Despite any Aid received in the past, the greedy still find a way of benefiting themselves so with or without Aid the people still suffer. Besides, the country is rich in mineral resources, to the extent a former dictator, Abacha, can steal nearly 2 TRILLION DOLLARS (over half of the stimulus amount for the whole of the USA) and that is just Abacha not forgetting what his thugs stole from the Country.

    With regards to war torn countries I believe what they need more urgently is military help. They need stability...

  • curious
    May 22 2009, 09:24

    Correction I said 1 TRILLION while it is 1 BILLION but it is a lot of money anyway..

  • rafil
    May 22 2009, 12:44

    Aid as presently constituted should end, it,s not in Africa,s interest. Africa,s vast reserve of stolen funds in western banks should as a matter of urgency be returned to help with the process of national development across Africa,that,ll be more effective than the useless aid being brought in and subsequently repatriated through the back door using their equally useless N.G.O,s. KEEP YOUR AID, RETURN STOLEN FUNDS IN YOUR WATCH.

  • Frank_Talk
    May 23 2009, 04:57

    Ninety-five percent of NGOs in Africa are either EU, American or UN owned. They Channel Aid through their own NGOs. Call them Western GONGOs if you like. Apart from the WTO, IMF imbalance regulations, most of the Aid is characterised by paying huge sum of expertriate fee to their so call directors and field officers, 4x4 cars, exquisite offices or buildings around the capital and provinces and other fat bonuses.So you got to ask yourself, what or who is the Aid funding? I have a friend who always launch tirades on NGOs, he says if he becomes president, he will expel all NGOs in his country. I see reason behind that.

    The west and Aid donors are both guilty as the African governments. I agree with Elly Wanda's argurement that the Aid itself is not the problem but the way it is delivered. Peace.

  • TwanakaNaiimwe Bakabolala
    May 23 2009, 15:06

    Time to move on is now. Anything as drastic as cutting a cleverly devised sytem of keeping Africa poor and ignorant 'AID' should definitely be cut. We are to trade with the rest of the world as partners, not as recpients of aid. We need to go to a level of partnership,were we batter or trade for goods and services startegically to better our lot. This has been a very annoying reality,that despite Africa's wealth both material and human,we still receive aid!! With regards to leadership, For heavens sake we need to immediately strengthen our resolve to ensure right leaders are elected to office and all this nonsense of short sighted, greedy ,no vision quick fix corrupt individuals who have kept us at the bottom needs to be fixed,harshly!! For God's sake Nigeria you are A SHAME to the rest of us. You should sit in sackcloth for the type of individual you have produced! Is it not better to build great institutions and grand enterprises that lasts for hundreds of generations and benefit the masses than to steal millions for selfish purposes, were has this mediocrity eminated from? The west must also own up and stop receiving stolen money!!!!!!!! Africans let us now challenge our identity and get rid of mediocre minds that are so retarded they make us poor every day! Nation building and enterprising building is now. We have something the world needs, we are not destitute. So Mr.Wanda perhaps a review of your views should be modified. We support balanced partnership not AID!

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