The Aid Answer
By Kenneth Bagnell
Dambisa Moyo, a Zambian, trained in economics at Harvard, recipient of a Ph.D. from Oxford, is author of a provocative book on foreign aid, a fact obvious in its title: Dead Aid. The book, published in 2009, still makes headlines. In a relatively recent interview, Moyo used the candor that draws attention: “The problem is that aid is not benign – it’s malignant. No longer part of the potential solution – it’s part of the problem –- in fact aid is the problem.” That’s strong language. But Moyo is only one of an ever widening number of credible economists expressing doubts about the efficacy of foreign aid.
In fact, her mentor, at both Harvard and Oxford, renowned Oxford scholar Paul Collier, wrote an earlier book, The Bottom Billion, to such great reviews that it won the coveted Lionel Gelber Prize for excellence in writing on foreign relations. Collier’s core thesis: the poor, mostly African, nations suffer from a variety of issues, but largely the failure of foreign aid. He offers views on how it can be changed, among them more sophisticated trading and laws that prevent entrenched levels of corruption. That most credible of business publications, The Economist, said of his book: “It’s set to become a classic.” It has. (Having read it a year or two ago, I’d add that it’s an enjoyable read, a real page turner.)
As sure as the sun rises, any re-adjusting of foreign aid will instantly be blamed in Canada, on the political philosophy of the current federal government. Naturally that happened following a recent policy change: Ottawa announced that international monetary aid will decline by roughly 7 percent in 2014-2015. Promptly the government was blamed for callous disregard for the world’s needy. But given the evidence, backed by data from a variety of sources, what’s wrong with readjusting if it will help and not harm? Or at least considering it? Moreover the critics are not reactionaries. Take Collier for one. As he says, he hopes his young son will grow up in a world where there’s no longer the horrid suffering Collier himself has seen firsthand. He’s as anxious to abolish poverty as the aid industry is; he just wants to end it by creating opportunities for people to have the dignity that comes from earning a living for themselves and their families.
The good news is that it’s been tried and proven successful. Where trade has been introduced countries of the African continent are moving ahead; an outstanding example being Ghana, now having one of the world’s fastest growing economies. As one African analyst puts it: “The picture continues to be replacement of western aid for Africa, by eastern trade with Africa.” Poverty is declining. So read Collier’s book, Moyo’s book, and one by William Easterly, (formerly of the World Bank), a book with a telling title: “The White Man’s Burden: Why the West’s Efforts to Aid the Rest have done So much Ill and So Little Good.”
If you’d like to help people in Africa get started in small business consider this: a couple of years ago, my daughter Andrea, a businesswoman in broadcasting, gave me a gift that’s a window on a way to participate. She gave me shares in Kiva, a well regarded non-profit organization through which, by going on-line, I lent funds to a woman who Africa, starting up a street food stand. Once she was established and paid back her loan, I went on line and designated that it be reloaned to help somebody else startup. By now it’s been reloaned at least a dozen times. Kiva has over 250,000 lenders. As Bill Clinton, a strong supporter says: “There are so many people who want to give but don’t really know how. Through Kiva.org, people around the world can become micro-bankers to developing world entrepreneurs, who have their own ideas, so we can give them a chance to raise their kids with dignity, send their kids to school, and in troubled places like Afghanistan we can marginally increase the chance that peace can prevail.” So, if you want a tried and proven way to help the developing world, by helping parents to lives of fulfillment for themselves and their children go to Kiva.org.
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