It`s time to shun aid
By Editor
9th May 2010
Editorial Cartoon
Bethuel Kiplagat, one of Africas most respected diplomats, once said that aid is a disease that kills Africa slowly, because it encourages dependency and destroys the spirit of self-reliance. Just last year, Zambian economist Dambisa Moyo wrote a book called Dead Aid, in which she set out to prove that development aid has not only failed to help Africa eradicate poverty but has actually done more harm than good.
Though some disagreed with her, many Africans saw truth in her analysis of the aid industry and its unfulfilled promises. In the book, Moyo looked at the aid Africa that has received over the past four decades and measured it against what has been achieved in terms of development.
The figures dont match up. We have received more, but achieved less.
We are told by insiders from the World Bank that out of every $100 given to Africa in aid, only $10 reaches the targeted people; the rest goes back to the donors via bank charges, consultancy fees and expatriate salaries, or straight into the pockets of corrupt public leaders.
During the 20th World Economic Forum on Africa that took place in Dar es Salaam this week, a number of key speakers made it clear that Africa must stem its dependence on donors, because aid has failed to liberate the continent from the chains of poverty.
One of the leaders who strongly denounced aid during the forum was former president Benjamin Mkapa, who said it was a shame for African leaders to continue touring the west with a begging bowl in their hands.
Though during Mkapas regime about half of Tanzanias budget was supported by aid, our leaders should still take heed of his commentary on Africas begging syndrome.
A neighbour cannot continue to finance your familys development in the name of charity; at a certain point you must take responsibility for your own wellbeing. Its time for Africa to realise its potential, in terms of natural resources as well as human resources, and use its assets to develop on its own.
Its a shame that the Congo, for example whose wealth is estimated to be equal to the combined Gross Domestic Product of the US and Europe has a budget that is 80 percent donor-funded.
In 1960s, the economies of Ghana, Tanzania, Malaysia and South Korea were at par in terms of GDP. But, nearly five decades later, Ghana and Tanzania have sunk deep into poverty, while South Korea and Malaysia have advanced more than ten times beyond where we are today.
These countries were not developed by aid. Their success was attributable to growth-oriented economic policies and strong leadership.
Africa is not poor. It is rife with bad governance and mismanagement of its abundant resources.
For instance, in a country like Tanzania with 10 million potential taxpayers, today only 600,000 pay direct taxes to the government annually. If you cant collect taxes, how will you govern and develop your people? And if you dont pay taxes, what stake do you have in the policies that your government chooses?
Theres fear out there that if we shun aid we will be even worse off than we are now. But Kenya has managed to cut the donor-funded portion of its budget to 5 percent over the past decade through enhanced tax collections and fair use of its natural resources.
The same path has been taken by South Africa and Botswana. Its possible and the time has come for us to finance our development by using our own resources.
SOURCE: GUARDIAN ON SUNDAY
By Editor
9th May 2010
Editorial Cartoon
Bethuel Kiplagat, one of Africas most respected diplomats, once said that aid is a disease that kills Africa slowly, because it encourages dependency and destroys the spirit of self-reliance. Just last year, Zambian economist Dambisa Moyo wrote a book called Dead Aid, in which she set out to prove that development aid has not only failed to help Africa eradicate poverty but has actually done more harm than good.
Though some disagreed with her, many Africans saw truth in her analysis of the aid industry and its unfulfilled promises. In the book, Moyo looked at the aid Africa that has received over the past four decades and measured it against what has been achieved in terms of development.
The figures dont match up. We have received more, but achieved less.
We are told by insiders from the World Bank that out of every $100 given to Africa in aid, only $10 reaches the targeted people; the rest goes back to the donors via bank charges, consultancy fees and expatriate salaries, or straight into the pockets of corrupt public leaders.
During the 20th World Economic Forum on Africa that took place in Dar es Salaam this week, a number of key speakers made it clear that Africa must stem its dependence on donors, because aid has failed to liberate the continent from the chains of poverty.
One of the leaders who strongly denounced aid during the forum was former president Benjamin Mkapa, who said it was a shame for African leaders to continue touring the west with a begging bowl in their hands.
Though during Mkapas regime about half of Tanzanias budget was supported by aid, our leaders should still take heed of his commentary on Africas begging syndrome.
A neighbour cannot continue to finance your familys development in the name of charity; at a certain point you must take responsibility for your own wellbeing. Its time for Africa to realise its potential, in terms of natural resources as well as human resources, and use its assets to develop on its own.
Its a shame that the Congo, for example whose wealth is estimated to be equal to the combined Gross Domestic Product of the US and Europe has a budget that is 80 percent donor-funded.
In 1960s, the economies of Ghana, Tanzania, Malaysia and South Korea were at par in terms of GDP. But, nearly five decades later, Ghana and Tanzania have sunk deep into poverty, while South Korea and Malaysia have advanced more than ten times beyond where we are today.
These countries were not developed by aid. Their success was attributable to growth-oriented economic policies and strong leadership.
Africa is not poor. It is rife with bad governance and mismanagement of its abundant resources.
For instance, in a country like Tanzania with 10 million potential taxpayers, today only 600,000 pay direct taxes to the government annually. If you cant collect taxes, how will you govern and develop your people? And if you dont pay taxes, what stake do you have in the policies that your government chooses?
Theres fear out there that if we shun aid we will be even worse off than we are now. But Kenya has managed to cut the donor-funded portion of its budget to 5 percent over the past decade through enhanced tax collections and fair use of its natural resources.
The same path has been taken by South Africa and Botswana. Its possible and the time has come for us to finance our development by using our own resources.
SOURCE: GUARDIAN ON SUNDAY
