Book Review: "Dead Aid" by Dambisa Moyo and Western Aid to Africa

An interesting book review is now available for Dead Aid: Why Aid is Not Working and How There is a Better Way for Africa by Zambia-born economist Dambisa Moyo.

Here is a piece of it:

Moyo’s views will not surprise readers familiar with the issue. When aid is easily available, she asks, why become an entrepreneur? Lobbying in Washington or Paris is more rewarding for an African entrepreneur than investing in his own country. Moreover, as Moyo shows, aid can destroy the continents’ few indigenous companies. The distribution of free anti-mosquito nets by aid programs, for instance, puts local manufacturers of nets out of business. Moyo proposes classic free-market solutions. The U.S. and E.U. should stop subsidizing their farmers, enabling Africa to export more of its primary products. Slum residents should receive legal title to their homes. African nations should foster the institutions of microfinance. All of this would spur real African growth, she believes.

You may remember that the issue appeared on the blog several years ago with a link to this interview with Kenyan economist James Shikwati, who also called for an end to Western aid to Africa.

In some ways, the Western developed world's love affair with aid is -- OK, I'm going to say it, though it's not politically correct! -- a new version of paternalism and the "white man's burden." It also goes with the entire therapeutic drive behind a lot of seemingly bleeding-heart endeavours: the wish to feel good about oneself for being charitable and whatnot. Good intentions are fine and all -- as paving stones to hell. People need results and a better standard of living.

Also, Africans are not pets -- no matter how many African babies some Hollywood celebrities want to adopt (with much fanfare and self-aggrandizing publicity), regardless of whether the local African authorities want them to adopt a native child or not. *cough* Madonna! *cough* (Boy, I'm trying not to launch into a digression about celebrities and their kinda/sorta neo-colonialist adoptions and messianic aid projects.)

Really want to help? Throwing money at the problem of African poverty won't fix it. In fact, it makes the problem worse. Go for trade, not aid -- and capitalism, free trade, and free markets that create wealth. Also along with the growth of free markets, the growth of free people, of self-sufficient individuals.

See an archived post from my defunct first blog.

Also, I apologize right now for often using so general a term as "Africa." But I haven't time or resources to look at each individual country in that continent; note that each one is different and that talking in overgeneralized terms really can't do much specific good.

UPDATE: Related article here! Blurb:

Africa needs aid, but not the kind the West is currently providing. Conventional development aid has turned the continent into a dependent recipient of charity. We should halt the handouts and adopt successful micro-lending models instead, helping Africans to help themselves.

OK, I can't help myself. Confucius say, if you want to feed a man for a day, give him a fish. If you want to feed him for a lifetime, teach him how to fish!