Yet another voice calling for an end of the practice to simply throw money at the many problems in Africa. Massive amounts of aid (government to government transfer of money) allow for massive amounts of corruption and a deterioration of local industry. Zambian economist Dambisa Moyo's book 'Dead Aid' illustrates the failed history of aid to Africa and offers a solution to break the aid/corruption cycle in Africa. Moyo argues countries should be weened off aid in favor of various capital market solutions.
Example: A country has an increasing amount of malaria infections. A local entrepreneur hires a small staff and begins producing locally made mosquito nets. An international aid organization comes in a large supply of free foreign made nets. The market is saturated and the local business is shut down, leaving debts unpaid and people unemployed. Yes many are presently saved from infection but as time goes on the free nets become worn. Now there is no market for mosquito nets to the people are at the mercy of more aid for their survival. The cycle begins anew.The long term benefits of a country achieving a strong credit rating is that they will be able to access large amounts of funds free of 'charitable' aid from other governments. Capital acquired in this fashion will allow for visible accountability for the ruling body. If the government decides to swindle to money gained from tapping private loans and bonds, this is will be a one time offence, for the markets have little sympathy for no return on its investments. It is significantly more challenging to manage an economy based on the system of free markets than that of direct injections of aid money. Simply changing the administration of aid money will attract higher caliber of men and women to lead their countries forward.
Micro loans are showing promise in assisting impoverished people improve their lives. Major institutions lack the infrastructure to reach large pockets of people in developing countries. The following is a great way to contribute without simply donating money to a random organization.
Kiva.org
21 UP, South Africa, Mandela's Children is a documentary that follows several children's lives every seven years starting at the fall of Apartheid in 1992. The children selected represent a wide spectrum of South African life. Black, white, Indian, rich, poor, village and township are some of the characteristics chosen. This film shows the shift from Apartheid as the major evil in the country to the HIV/AIDS pandemic destroying families and communities.When one boy was asked what he prays for at night, he responded, "I pray for an education."
Reading List
- Long Walk to Freedom, Nelson Mandela
- Mugabe
- Dead Aid
- King Leopold's Ghost
- Saturday is for Funerals
- This Child Will be Great, Ellen Johnson Sirleaf
- Why We Cant Wait, Martin Luther King, jr
