Thursday, May 22, 2008

"For God's Sake, Please Stop the Aid!"

There's an interesting interview in German magazine Spiegel with Kenyan economics expert James Shikwati who says to stop the aid. A couple of reasons:

  1. Huge corrupt, complacent bureaucracies form around this aid. (both in Africa and among the organizations built to "help" but who ultimately would have to close down if their help were no longer needed).
  2. Africans are taught to become beggars and not to be independent. African nations should be trading within themselves (which would also be a huge environmental gain as we reduce the impact of huge worldwide shipments).
  3. Weakening of the local market and reduction in the incentives for entrepreneurship.
One of the biggest problem, as pointed out, is that the item most shipped over is the one thing all Western nations heavily subsidize (and what all Africa actually has a competitive advantage in): food. The other "problem" is AIDS, both the realistic problem and the perverse incentive for those countries to exaggerate the problem so as to keep their biggest "business" working.

1 comment:

Ricky S said...

As if anyone would be surprised, but Mugabe is clearly paying attention as he again uses food as a weapon.