Dead Aid, Dambisa Moyo, Farrar, Strauss and Giroux, N.Y. c. 2009
Dead Aid, published last year, had a major impact on the aid community and several African nations. Its subtitle, “Why aid is not working and how there is a better way for Africa.” reveals why. While it has been generally accepted for a number of years that a large percentage of foreign aid has not achieved its goal, there has been very little done to change the culture of government aid on a nation-to-nation basis. Ms. Moyo offers a radical approach to change the culture. It was widely discussed among economists until the economic crisis took the front burner and reforming foreign aid slipped from the headlines. This is regrettable, as Ms. Moyo makes very clear changes are needed. The earthquake disaster in Haiti has focused some attention on the aid issue again. Recent articles in the New York Times state traditional aid to Haiti has not worked and call for new approaches. But what should the new approach be and how does one overcome the inertia of the massive international aid bureaucracy?
Ms Moyo’s position on the failure of aid is not a unique perspective today. However, she states the situation boldly and succinctly in saying, “Millions in Africa are poorer today because of aid: misery and poverty have not ended but have increased. Aid has been, and continues to be, an unmitigated political, economic and humanitarian disaster for most parts of the developing world.” She clearly and briefly brings together many examples of this failure often driven by the misplaced altruism of leaders of pop culture. The failure of such aid is illustrated in her story of the mosquito net manufacturer who had a small private business going employing ten people. Foreign activists, some from Boulder County, desired to stop malaria and swamped the country with free nets. This drove him out of business, and his 150 employees’ dependents into poverty, achieving just the opposite of the desired goal of foreign aid, which is to help a nation grow an economic base. She presents other illustrations and this is the best part of the book.
Her multi-faceted solution is less satisfactory and reflects her background – a PhD in economics from Oxford and eight years at Goldman Sachs. One very important facet is freer trade, especially agricultural, and the end to agricultural subsidies given to farmers in developed countries. (Did you know that each cow in the EU gets the equivalent of $2.50 a day in subsidies? Compare that to the incomes of many Africans.) Another facet of her solution is support for micro-finance that encourages the development of basic economic knowledge among individuals at the local level. Both of these ideas appear very reasonable. Her main solution, however, is less so. It entails reliance on the free market and loans obtained from the developed world’s financial markets. Her theory is that the market will demand honesty, openness, and efficiency in order to achieve a return on the investment. Under present aid arrangements corruption and inefficiency are rampant. Often reliable transport infrastructure is lacking, as is an educated workforce. Ms. Moyo believes the free market will correct this and lead to economic growth and prosperity. It is an optimistic and, I suspect, unrealistic position. Foreign aid was conceived as a way to achieve growth, and has failed as Ms. Moyo clearly illustrates. A culture of paternalism and dependency has not worked. The need is for a restructuring of society, but how? To wait until a country achieves a new structure before providing access to funding appears even less attractive as a solution than foreign aid.
In spite of this negative analysis, I do recommend the book for a quick reading (it is only 154 rather small pages with 34 pages of references that can be helpful.)
Ms. Moyo’s analysis of how aid went wrong and of the negatives of agricultural subsidies are worth hearing and some may find her major solution to “dead aid” compelling.
Bill Kellogg
True Compass: a Memoir, Edward M. Kennedy, Twelve, N.Y. c. 2009
This memoir covers the 1930s to the election of President Obama and whether you lived throughout those years as I have, or whether you are just becoming aware of public affairs, I recommend it as an entertaining and reflective record of the “American Century.” Of course, as with any memoir, it is biased and seen through the eyes of one individual. However, unlike some political memoirs, this individual from his earliest childhood was a member of a family that was at the heart of political power and decision-making. As the threat of war grew in Europe in the late 1930s, young Ted Kennedy was living in England. His father was the U.S. ambassador to Great Britain and a friend of President Roosevelt. At the end of his life, Ted Kennedy’s endorsement of Barack Obama for president is considered an important development in his election. Throughout his life Ted Kennedy was involved in many of the major political developments of the century and he his description of these events is brief, revealing, and, depending on your age, a great summary or reminder of those events.
Kennedy’s perspectives on President Kennedy’s handling of the Cuban Missile crisis and relations with the Soviet Union may be the more interesting sections to members of the United Nations Association. To me, the discussions of Vietnam, in which Afghanistan could be substituted for Vietnam in almost every sentence, was fascinating. Does history repeat itself? On the domestic front the same type of relationship can be found between the Clinton attempts at health reform, in which Kennedy was deeply involved, and the current attempts.
Aside from the perspective on the major political developments of the past eighty years, the memoir provides intimate and very personal insights into the Senator’s life and relationship with his siblings and family. While many may not care for the Kennedy clan, the closeness and rivalry of its members are complex, and illustrate the importance of human relationships in the making of major political decisions – both here and abroad.
Bill Kellogg
No comments:
Post a Comment