In the past fifty years, more than $1 trillion in development-related aid has been transferred from rich countries to Africa. Has this assistance improved the lives of Africans? The answer is no. In fact, across the continent, the recipients of this aid are not better off as a result of it, but worse—much worse. In her book “Dead Aid,” Harvard and Oxford trained Dambisa Moyo describes the state of postwar development policy in Africa today and unflinchingly confronts one of the greatest myths of our time: that billions of dollars in aid sent from wealthy countries to developing African nations has helped to reduce poverty and increase growth. In fact, poverty levels continue to escalate and growth rates have steadily declined while millions continue to suffer. Provocatively drawing a sharp contrast between African countries that have rejected the aid and prospered and others that have become aid-dependent and seen poverty increase, Moyo illuminates the way developing nations are trapped in a vicious circle of aid dependency, corruption, market distortion, and further poverty, leaving them with nothing but the “need” for more aid.
Debunking the current model of international aid, Moyo offers a bold new road map for financing development of the world’s poorest countries that guarantees economic growth and a significant decline in poverty—without reliance on foreign aid or aid-related assistance. The core of her argument is that there is a better alternative. Governments could find money for development through financial markets, both international and domestic. Historically, governments that have funded investment by recourse to international markets have seen real development. In order to borrow, they needed decent credit ratings; to get the ratings, they had to be transparent and prudent. This economic discipline was as important in promoting development as the money. Some of the stronger African governments have at last started down this road.
Web site: http://www.dambisamoyo.com/biography/