"A journey of a thousand miles begins with a single step!!"
Each of us must has a destination, and for this destination sometimes we have to struggle. Sometimes only a little thing that make the difference, and maybe it's coming from your single step today! Whoever and whatever you're I invite you to share anything.
Tuesday, 6 December 2011
Some walks to remember
Mother's Prayer (A Poet of Jalaluddin Rakhmat)
Thursday, 14 July 2011
Critical Review of Dambisa Moyo - Dead Aid
Moyo, Dambisa (2009). Dead Aid- Why Aid is Not Working and How There is Another Way for Africa.
Review by Anung Andang Wiratama, University of Sydney
For a long time, an enormous amount of aid from developed countries and international agencies has flowed to developing and undeveloped countries. During this period, aid has become the blood of recipient countries to finance their expenditures. However, poverty remains the major problem of recipient countries, particularly African countries. In her book, Death Aid, Moyo simply concludes that aid has failed to achieve their objectives. She also states, clearly written in the subtitle, that there is another way for Africa beside aid. Even though stopping aids is not a new idea, Moyo suggests new ideas that explain why aid is not working.
This review will only be based on chapter 2, A Brief History of Aid, and chapter 3, Aid is Not Working, of the book. This review will focus on the general view in chapter 2 and elaborate more about Moyo’s ideas in chapter 3. Chapter 3 consists of the main points of Moyo’s idea to stop aid that will be the main focus of this review. The main focuses are the relation between aids and democracy, the contribution of aids compared to other factors for worsening development in Africa, aid in practice and the role played by donor countries, and a consideration of the other side of altruism.
In chapter 2, Moyo briefly describe the history of aid and how the focus changed from the first era of aid in 1944 to the beginning of 2000. This chapter is not only provides data of aids but also chronologically analyzes the background why aid was given. Overall, this chapter gives details and a comprehensive overview on the history of aid as well as a fairly good introduction for the reader before entering the main arguments in the next chapter.
In chapter 3, she claims that democracy is not a prerequisite for economic growth, for example she describes the history of some Asian countries that enjoyed economic growth with autocratic regimes such as China, Indonesia, Korea, Malaysia, Singapore, Taiwan, and Thailand (p. 42). She also suggests that in the early stages of development, people are living in hunger therefore they do not care whether they have the right to vote or not. This notion is currently relevant to the case of some emerging countries such as China and India which have enjoyed magnificent economic growth without having democratic regimes. Thereby, this argument really touches the grounds of aid which according to the proponents of aid democracy should precede economic growth.
Moyo provocatively claims that aid not only fails to achieve its objectives but also contributes to the decreased growth rate in Africa continent. In contrast, she also admits that there are several factors that contribute to the failure of African countries to generate sustainable economic prosperity such as geographical, historical, cultural, tribal, and institutional problems (p.35). However, she undermines how those factors contribute to the worsening economies of African countries by arguing that the one thing African countries have in common is that they all depend on aid (p.35). It is true that there should be a way for African countries to generate economic prosperity despite those factors. Yet, a weakness in her argument is stopping the aids just because they all rely on aid will create more problems instead of solving the problem. Hence, further research is necessary to find how aid really contributes to the problem in African countries compared to the other factors mentioned above.
Theoretically, aid is given along with so many conditionalities which bind the recipient countries to use aid according to the rules and regulations. However, she mentions that a study conducted by the World Bank shows that 85% of aid flows were improperly used. Therefore, Moyo suggests that in practice those violations did not stop donor countries from providing the aids and it is supported by research conducted by Svensson (p.39). These facts shed light on the fact that it is not only the recipient countries who are supposed to be responsible for the failure of aid but also the donor countries which did not commit to stopping aid when it went wrong.
Moyo abundantly exposes how aid has failed to help recipient countries, except aid that was given to European countries through the Marshall Plan, along with strong evidences and facts to support her view. Additionally, she criticizes some celebrities such as Bono who promoted more aid for Africa. However, her cynical critics must consider the fact that there are still many people living in hunger and aid has enabled many people to stay alive despite severe humanitarian disasters such as drought in Ethiopia and refugees from conflict in some African countries. In this way, we will get a balanced view of altruism promoted by those celebrities.
Although stopping aid is not a new idea, Moyo’s book is clearly provocative and fundamentally creates a new perspective that represents the voice of African countries. In general, it touches broader aspects of aid and undoubtedly shows that during the long history of aid African countries have failed to create economic prosperity. It also should inspire African leaders to find more creative and innovative solutions rather than depend on aid. Whereas aid is perhaps only a short term solution, long term economic growth can only be build by empowering domestic economic sources through competitive free market mechanisms.