Comments on: The Aid Conundrum

By: Anonymous

Anonymous — Sun, 03 Aug 2008 01:37:18 +0000

Hm – http://www.globalissues.org/TradeRelated/Debt/USAid.asp has some data that indicates that the US doesn’t in fact contribute so much. We are 21st in terms of contributions relative to GNI and Germany, France and the UK together contribute more than the US in absolute terms.

By: David Zetland

David Zetland — Mon, 28 Jul 2008 23:09:26 +0000

I've been thinking about aid for 5-6 years now. Aid *does* subsidize many harmful things (food dependence, terrible regimes, etc.). Trade is much better for Africa, but it's not "quick enough" for many. (Note that these people are interested in Africa but unwilling to send boxes of $$ -- they want THEIR programs implemented -- they do nottrust Africans to spend the $$).

The number one problem in development (in Africa, as elsewhere) is corruption, and aid -- as a concentrated source of $$ -- makes that problem worse, in the same way that diamonds or oil does.

Bottom Line: End aid; support institutions. If famine is 'round the corner, buy food from local farmers and distribute it to people (not militias).

By: bbartlog

bbartlog — Mon, 28 Jul 2008 14:25:54 +0000

I recommend the book 'Breakfast in Hell' by Myles Harris, for anyone interested specifically in the Ethiopian situation. Quite aside from the destructive behavior of many of the Ethiopians, it outlines the incentives that the Ethiopian government had to prolong the crisis.
Africa will not be saved until we have genetic engineering (as in, easy, cheap germline engineering of humans). Even then it may be hard, but at least there will be a path.

By: rxc

rxc — Mon, 28 Jul 2008 09:43:29 +0000

The need for compassion never drops. Attempts that are made to satisfy "needs" just generate new "needs". This is a truly unsustainable course of action that can only end in significant suffering. Suffer now or suffer later, except that compounding ensures that future suffering will be quite a bit greater.

But then, future time orientation like this is a racist concept...

By: dave smith

dave smith — Mon, 28 Jul 2008 06:54:53 +0000

Mahtso, Not very many people in who study that question agree with that conclusion. While our ag subsidies distort the comparative advanatage, and should be stopped at once (for many reasons), they are not the cause of Africa's poverty. The three leading thinkers about Africa (Sachs from the left, Collier from the center, and Easterly from the right) agree that ag subs. should be stopped but that it wouldn't help Africa enough.

In terms of Africa's problem, stopping ag subsidies would be like fertilizing your petunias while your house is on fire.

"The key to Africa's prosperity is the stopping of Western farm subsidies" is an easy solution.

Beware of any solutions from the left or the right, or anywhere else that are easy. Africa's problems are not easy.

By: mahtso

mahtso — Mon, 28 Jul 2008 03:43:40 +0000

I recall an essay in the WSJ a few years back in which the president of one nation in Africa (sorry I don’t recall who or where) was asserting that if the US and Europe were not subsidizing our respective agricultural industries, those in Africa could be competitive and aid would not be required.

By: Ian Random

Ian Random — Mon, 28 Jul 2008 02:19:11 +0000

The world bank had a great site called doingbusiness.org, except that it underestimated the time it took to open a business. Pretty much all the third worlders invest pretty heavily in bureaucracy and other barriers to entry. An example from a professor was Peru where it took 2+ years to open a laundry while it took 12 hours to open in Miami. I think it takes 6 months for escrow to clear in Uganda versus 2 weeks in the US. Basically, most in the third world are squatters, so they can’t borrow against their land to improve it. If you did have something to borrow against, the banks don’t work as well as here, so you can wait forever for your money.

By: dave smith

dave smith — Sun, 27 Jul 2008 21:10:14 +0000

I recommend that everyone read Paul Collier’s “The Bottom Billion.” He lays out circumstances by which and when aid should be given to African countries.