![]() In 2009 the Zambian economist Dambisa Moyo challenged many assumptions about aid in her book Dead Aid. ![]() He argued that it posed the danger of promoting government power, destroying economic incentives as well as eroding civic initiatives and dynamism. Nearly 50 years ago the well-known Hungarian-born British development economist, Peter Bauer, strongly criticised government-to-government aid as neither necessary nor efficient. Timely reforms of foreign aid can help to achieve significant growth and poverty reduction in Africa. ![]() The aim of this article is to provide some key pointers to reforms that should take place. Recipient countries pour aid money into poor and inefficient white elephant projects that neither foster growth and development nor build good institutions. The arguments against aid point to gaps in the management of foreign aid. ![]() As South Korea’s ambassador to South Africa has argued, aid is ineffective in places where there is bad governance, and unnecessary where there is good governance. The other is that foreign aid is not a problem by itself, but misallocation of resources, corruption, and bad governance limit Africa’s ability to use aid. ![]() One is that Africa’s aid-dependent economic model provides “free” money which prevents countries from taking advantage of opportunities provided by the global economy. There are two sides to the debate on foreign aid to developing countries, in particular in sub-Saharan Africa. ![]()
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