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Developing World (Fach) / Aid (Lektion)
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- conclusion (case for doubling aid, howard white) financing gap exists - additional funds are needed for achieving MDGs various arguments for why aid shouldnt be increased are dismissed but implication for aid management are made more aid should be used for poverty reduction, more emphasis on providing goods and services instead of technical assistance as far as possible fund government exected programmes rather than project based things
- why aid is not working: and how there is another way for africa author moyo 2009
- how much aid in the past 50 years? 2 trillion, africa biggest recipient
- moyos main argument aid is at the core of development work but has failed to deliver the promise of sustainable economic growth and poverty reduction
- resource curse countries rich in natural resources depend a lot on them and have failing economies
- growth patterns of african countries differ depending on resource poor and coastline: historically perform better than resource rich (landlocked or coastal) resource poor and landlocked: worst performers resource rich / doesnt matter holds true globally. africas population is focused around resource-scarce, landlocked
- ethnic reason for economic failure disparate tribl groupings and ethno-linguistic make-up 1000 tibes in subsahara africa, nigeria with 150 million people has 400 tribes -> ethnic rivalry can lead to civil unrest (e.g. rwanda 1990s) civil wars cost 4 times annual GDP, negative spillover to neighbouring countries can be half of their GDP
- Marshall plan as inspiration for aid in africa? Why aid is not working and how there is another way for africa 2009 wrong: european countries were not fully dependent on aid, despite war the western european economy was already underway and had other resources to call upon at their peak marshall plan flows were only 2.5% of the GDP of large recipients like france and germany, while never going past 3% for other countries for a finite amount of time (africa: no incentive for long term financial planning) africa receives aid thats worth almost 15% of its GDP
- botswana Why aid is not working and how there is another way for africa 2009 they received aid at 20% of the countries national income, between 1968 and 2001 the growth rate was 6.8 % (one of the highest in the world) but moyo says aid is not responsible for this: trade policy, pursue of numerous market economic options, monetary policy - by 2000 aid share of national income was lowered to 1.6% = success by ceasing to depend on aid
- so why doesnt it work in africa? moyo 2009 geographical, historical, cultural, tribal and institutional (colonialism)
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- IDA international development association graduates - countries that have in the past relied on aid but no longer do so: 22 countries, chile china colombia, south korea... and only three african ones botswana, equatorial guinea (oil) and swaziland
- problems with conditionalities aid often tied to procurement: aid has to be spent on specific good and services whic originated from the donor countries donor can preselect the sector/project aid flows as long as the country agrees to a set of economic and political policies
- micro macro paradox mosquito net maker