The university of sydney |
Foreign Aid: Bliss or Blight? |
A Critical Review of Dambisa Moyo's Dead Aid |
Khyam Bahadur B.K. |
Student ID: 311038492Date: 10 February, 2010 |
Dambisa Moyo examines the uselessness of foreign aid in her book Dead Aid (2009). Dr Moyo, who is a Zambian by birth and is educated as an economist at Harvard and Oxford, claims that foreign aid has promoted dependency and corruption rather than improving the lives of people in Africa. She argues that above US$ 2 trillion has been flowed in last fifty years but development is still a mirage. She argues with a number of evidence to justify aid system as a problem, but doesn't make a balance between the problem and the solution.
In Dead Aid, Moyo outlines the history of aid in brief, digs out the reasons of failure also recommends some solutions. Bretton Wood conference of July 1944, which gave birth to the International Monitory Fund (IMF), World Bank and the International Trade Organization (ITO), was the preamble to foreign aid system which formally came into a practice with the execution of Marshal Plan (1948-1952); it had a great success in Europe. Against the backdrop of this success, foreign aid began flooding in to the developing countries with the agenda like industrialization, poverty alleviation, good governance etc. over the decades; however none of them were successful.
Moyo observes the problem from the beginning of the aid. Donor agencies borrowed the ideas of Marshal Plan (1948-1952) and begun experimenting in Africa, which Moyo claims was 'wrong'. European countries being already empowered allies of world war could easily improve their status which was not applicable to Africa. Besides, the Plan was for a fixed term, whereas aid is still continuing in Africa. Moyo suggests the vested interest of the Donor agencies behind the continuation of aid. Most of the African countries became free from their colonial status in the 1960s. She claims aid to be...