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Poverty

Cheap aid in Africa

Africa should not be needing more aid, according to Ugandan economist and former ambassador William Naggaga, writing in the Daily Monitor. It should have graduated to a middle income continent long ago, and some African countries should be in the “first world” by now. He contrasts the results of the aid provided to Europe after the second world war with the results achieved by aid in Africa over the past 50 years.

Sixteen Western European nations received $13 billion over a period of five years, and all of those countries experience rapid economic growth. Africa has received more than $1,000 billion in various types of aid over 50 years, but remains the poorest continent. In Europe, democratic governance structures were largely intact, and recipient countries were experienced in managing public funds accountably. The money was not stolen, and the aid lasted only for a short time.

In Africa, conditions for successful use of aid have not been so favourable. Donors are motivated by guilt and pity rather than by commercial considerations, so they are less inclined to ensure beneficial outcomes, and they tend to be willing to overlook misuse of funds. As a result the impact of much of the aid is either minimal or negative.