<br>From: <b class="gmail_sendername">Will Podmore</b> <span dir="ltr"><<a href="mailto:W.Podmore@bso.ac.uk">W.Podmore@bso.ac.uk</a>></span><br><div class="gmail_quote"><br></div><div class="gmail_quote"><br></div><div class="gmail_quote">
<p class="MsoNormal" style="text-align:justify"><span lang="EN-GB">The trouble with
aid: why less could mean more for Africa, by
Jonathan Glennie, paperback, 175 pages, ISBN 978-1-84813-040-1, Zed Books,
2008, £12.99.</span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">Jonathan Glennie, an experienced policy analyst for several
international development charities, has written a very useful study of aid. He
criticises the simple assumption that doubling aid would halve poverty. </span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">He points out, “In reality, in many African countries aid has meant
more poverty, more hungry people, worse basic services for poor people and damage
to already precarious democratic institutions.” </span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">African incomes per head rose 36 per cent between 1960 and 1980, but
under international Thatcherism, between 1980 and 2000, they fell by 15 per
cent. IMF cuts forced Africa’s spending on
education down by 65 per cent between 1980 and 1987. In the 1980s and 1990s, the
IMF imposed user fees on health care, making child mortality in Zimbabwe rise
by 13 per cent. </span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">The aid conditions of privatisation and liberalisation have had more
impact than aid money. As he observes, “donor conditions have harmed Africa overall.” He notes, “trade liberalisation policies
as a whole have cost Africa $272 billion since
1985.” A 2004 report found that “adjustment policies have contributed to the
further impoverishment and marginalisation of local populations, while
increasing economic inequality.”</span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">Glennie notes, “The European Union is currently using the promise of
better trade access through Economic Partnership Agreements (EPAs) to
pressurize African governments to adopt policies most do not want to adopt.
Just like aid conditionalities, this pressure undermines democratic
accountability and the ability of African countries to make decisions in their
own interests. In fact even EU aid priorities, according to the EU’s Trade
Commissioner, will be directed towards helping implement EPAs.”</span></p>
<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB"> </span></p>
<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">He observes, “billions of dollars are lost to Africa
every year in illicit capital flight, investment abroad, debt repayments and
bolstering central bank reserves, far more than arrive in the form of aid and
foreign investment.”</span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">He notes “the central paradox of aid – that the act of aid giving in
itself undermines both state capacity and accountability.” As he writes, dependency
on aid from foreign donors has undermined the development of the basic
institutions needed to govern and the vital link of accountability between
state and citizen.” He sums up, “aid itself has undermined democracy,
institutions and the capacity to govern in Africa.”
</span></p>
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<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">Glennie observes that aid is good for the donor governments. “There
are two main reasons for the donor focus on aid. First, aid is the easiest and
least costly way for politicians to be seen to be responding to the continuing
and unacceptable poverty that exists in most of the world, particularly in Africa. And second, far from being costly, aid is a
cost-efficient way of buying economic advantage and political support.” For
example, spending on technical aid, mostly the salaries of foreign advisers
shipped in from donor countries, accounts for half of all aid. </span></p>
<p class="MsoNormal" style="text-align:justify;text-indent:.5in"><span lang="EN-GB"> </span></p>
<p class="Normalandjustified" style="text-align:justify;text-indent:.5in"><span lang="EN-GB">He concludes, “Aid increases may harm efforts to reduce poverty and
improve governance and sustainable development in most African countries.” </span><span lang="EN-GB" style="mso-fareast-font-family:SimSun">Nations need to control
capital flows, create and use their own resources, and not rely on foreign aid.
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