Aid vs. Development

Last week, I heard one of Time's 100 most influential people, speak on "Why Aid is Not Working and How There is a Better Way for Africa."  Dambisa Moyo really hammered home not only why we need to focus on economic infrastructures, but why aid is actually harming efforts to eliminate poverty.

In a pre-event discussion hosted by The Eleos Foundation, Moyo stated that African governments treat aid like an open ended entitlement and the developed world continues to feed into this expectation.  There is no incentive for African governments to build economic infrastructure in their country because they know that aid will come anyway.

The one thing the World Bank can focus on this year, is to make all African countries get a credit rating.  Right now, only 15 of the 50 countries have one.  This credit rating is a signal to the international business community to have confidence in doing business there.  Instead, African countries are showing images of impoverished children to increase aid.  No investor wants to do business with that image. 

In Africa, people who have access to education frequently do not take advantage of it because they know there won't be any jobs so why bother with the effort.  Africa needs to create a place where industry exists and jobs are created other than the industry of aid.

Moyo's criticisms are mostly focused on government aid and less on charity from nonprofits or on emergency aid.  However, she does point out the example of the African mosquito net manufacturer, employing local villagers, who is put out of business by well-intentioned aid agencies doling out free nets.

While the above represents what Moyo discussed, I have to agree that it makes sense.  Here our my take aways:

TAKE AWAY #1:

Consistent with the issue of international aid vs. global development, I also recently read about social aid vs. social change.  In your own giving, whether it's local, national, or international, think about if where you are donating your  money is providing aid or the opportunity for change.  It's up to you where you give, but it's good to understand what you are giving to.

TAKE AWAY #2:

Moyo did show her support for programs like KIVA, which provide micro financing and is pretty well known in the U.S.  This is such an easy way for people like you and me to help support global change.  I am about to give my second girlfriend a birthday gift of a KIVA gift card.  No more candles, note cards, or books from me.


Click HERE for an article by my man Kristof addressing and supporting Moyo's views and a discussion on what type of aid is working the best.

Why the U.S. Education Issue Relates to Global Development

As mentioned above, I heard Dambisa Moyo speak this week.  I wanted to hear her speak on international aid which she covered beautifully in the pre-event discussion hosted by The Eleos Foundation.  Her main talk, in Campbell Hall, was on her new book which focuses on U.S. economics.  I was wondering why I was spending a sunny Sunday afternoon away from my family to listen to her when she managed to take my two favorite causes, education reform and global development, and marry the two.

Moyo stated that the single most important issue to U.S. economics is our slipping performance in math and science.  In one generation, we have gone from the #1 country with the most college graduates to #12.  Not only do we need to maintain our position as the most innovative country in the world for our own economy's benefit, but innovation is what is needed to solve problems like poverty and energy efficiency.

By 2042, U.S. minorities will be the majority.  However, we are failing to educate our minorities, especially in math and science.  "We are ceading our power due to lack of innovation, due to lack of education."  The world needs the U.S. to maintain it's position as the lead innovator to help our global community.

So my African born global development speaker, who was really an economist, ended up speaking about U.S. Education Reform.