Commentary on Dambisa Moyo’s book ‘Dead Aid’

Dambisa Moyo’s book Dead Aid has received a lot of publicity over the last month and joins a long list of popular books attacking aid programs, and those organisations and groups that deliver it. This book is by an economist who has spent most of her working life with Goldmann Sachs the investment advisory service, and before that the World Bank. I emphasise that point as most of the commentary highlights her Zambian heritage, and it is used to give her more credibility than the many middle age white males who comment on aid to Africa – and I readily admit falling into that category. Of course there are also many black voices who comment on the aid policies to Africa but take a different line, and we can think of Nobel laureates Desmond Tutu and Nelson Mandela, or former UN Supremo Kofi Annan, all of whom have lived and worked in Africa; or the Kenyan lawyer Binaifer Nowrojee who is a member of the Coalition for Women’s Human Rights in Conflict Situations, and writes extensively on gender and conflict in Africa contexts.

The line Ms Moyo takes is a familiar one, and that is the debt crisis in Africa is of Africa’s own doing and that ‘aid’ makes things worse. What is interesting is that the book comes out at the time the world is facing by far the worst global recession since the 1930s, and the solutions Ms Moyo is suggesting for Africa, are now generally been agreed as been part of the cause of the current crisis: that is, access to unfettered global exchange markets, and poor credit regulations – particularly in the US. One can argue that Goldman Sachs is probably more to do the problem than the solution.

That aside, this book’s rather passionate defence of the neoliberal approaches to development is rather selective in its view of aid and development. While it readily accepts the role of the re-building of Europe after the war and cites the Marshall Plan as a very positive example, Ms Moyo seems to be less supportive of the aid successes in the developing world of the last sixty years, and the role it had in many countries, some of which are in Africa. She also suggests that the Asian successes are to do with ‘free market policies’ and ‘outward orientation’. While we can agree with an outward orientation, one is hard pressed to find any Asian country, successful or otherwise, that practices free market policies. Much of the success is to do with a high level of government (and dare I say it ‘aid’) investment in strategic areas, and in planning. None of this is mentioned in Ms Moyo’s book. [...]

Bretton Woods 2: What Should be on the Agenda

Since the beginning of the current global financial and now economic crisis the role of the global financial institutions namely the International Monetary Fund and the World bank are under scrutiny. This paper from the Bretton Wood Project raises a number of key issues which any new global financial architecture must address. In among issues such as exchange rates trade surpluses and deficits and other global economic issues, is the important dicussion about local development and the preservation of the global commons.