StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Dead Aid - Book Report/Review Example

Cite this document
Summary
Date Book Review: Dead Aid by Dambisa Moyo Author’s background Having completed a PhD in Economics at Oxford University in 2002, Dambisa Moyo is widely recognized for her literary works as an international economist…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Dead Aid
Read Text Preview

Extract of sample "Dead Aid"

Download file to see previous pages

Book Review Published in 2009, Dead Aid openly challenges the notion that international aid to African economies, as a development policy is helpful. Moyo relays a distinct contrast between African countries that have rejected foreign aid and those that have accepted it over time. What comes out is that the latter is suffering more as such countries have become reliant on aid and, therefore, are in a position of continually needing more aid. Her argument is because aid-reliant countries or those that receive aid-related assistance have suffered a decline in economic growth and increased poverty levels.

The initial part of her argument is that, if governments had to depend on private financial markets and revenue from taxes, they would be accountable to lenders and voters respectively. She likens aid to oil, which dominant elites are using to misappropriate public revenues. She uses her own country of origin-Zambia and other African countries, to illustrate where she states that interventions brought about by foreign aid resulted in a rise in poverty up to 66% between 1970 and 1998 when foreign aid was at its peak.

Further, she states that foreign aid, in fact, promotes corruption and misuse of such funds, as they are ‘free’. This she denotes using the example of Mobutu in Zaire where he looted an estimated $5 trillion. A majority of African leaders are known to be corrupt thus funds donated or lent out for development purposes have been looted or squandered. Moyo’s view is that foreign aid promotes corruption and this has resulted in the vicious cycle of reliance on the same (Moyo 49). Central to her argument is that African governments should make a shift to financial markets, foreign and domestic markets combined, as a source for funds for development.

This is because borrowing from these markets requires credit rating, which in turn implies transparency and discretion. Making transparency and prudence common practice, according to her, is just as crucial as funds for development (Moyo 78-79). However, this is an optimistic view as the opportunity for accessing such funding is lacking. This is heavily due to the global crisis from which both U.S and Europe are still reeling. It has become necessary for potential sources of finance to exercise caution hence avoid all risky situations such as lending to developing countries.

In addition, she gives a mosquito anecdote to illustrate opportunity cost and the law of unintended consequences, which bring out that some potential, has to be sacrificed for every action and consequences may be foreseen for every action. This she uses to evidence the negative effect that widespread corruption in a majority of African countries has on economic growth, such corruption hampers social capital and foreign investment (Moyo 44). It is clear that donor aid is not beneficial to developing African countries in the long term as it breeds a culture of over-dependency and promotes corruption.

Therefore, an alternative to these needs to be established although cutting off completely such aid should not be an immediate action. According to Moyo, one is more likely to be cautious and prudent with money they have worked for as opposed to money that has been given to them freely. This implies that stringent conditions may be attached to foreign aid as a development policy. Stringent in the sense that a larger part of the money should be paid back and a sense of accountability instituted.

In addition, a time frame of when

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Dead Aid Book Report/Review Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/history/1467523-dead-aid
(Dead Aid Book Report/Review Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/history/1467523-dead-aid.
“Dead Aid Book Report/Review Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/history/1467523-dead-aid.
  • Cited: 1 times

CHECK THESE SAMPLES OF Dead Aid

Contemporary Issues in World Politics

Generally, politics and international relations influence economic policy.... The political undertakings of nations determine world trade and financial flows.... On the other hand, the… Political interests of nation states are mutually dependent on the economic well-being.... This paper presents a critical assessment of the argument that world politics International trade is one of the aspects of the global political economy that are prominent with regards to international relations....
6 Pages (1500 words) Essay

The Population Demand in China

uestion 2Use of diverse remedies in the Dead Aid proposal is a positive induction.... (2011) Dead Aid: Why Aid is Not Working and how There is Another Way for Africa.... Incepting new ideas in the market is a retrogressive idea that does not bring out any Macro and Micro economics Macro and Micro economics Question Reducing aid flow to some countries is a financial regress.... Therefore, such markets rely on foreign aid as a major source of income in the market (Moyo, 2011)....
3 Pages (750 words) Assignment

Revolutions in the West

In the process of establishing whether we should give aid or not to the poor, some people feel that giving aid helps only in increasing the number of people in the world.... Whether this view would hold water with respect to giving aid to poorer countries and people, an analysis of Singer's views would be critical....
5 Pages (1250 words) Assignment

The Problem with the Aid in Africa

It can be thought that from then to date, African states should have become self-sufficient and not be relying on aid anymore.... The problem however is that aid has… According to Andrews (2009), Africa would be in a better place without the aid as even with it no changes are being seen as will be discussed below aid was started in Africa in order to facilitate development projects after colonialism.... Colonialism had impoverished African countries and the western nations came in with the concept of aid to assist....
8 Pages (2000 words) Essay

Free Trade and Economic Globalization Undermine Development

The paper "Free Trade and Economic Globalization Undermine Development" states that most countries that have been receiving aids continually seek to obtain more aid and rather than finding ways to provide funds for their development.... The aids involve high long-term expenditure in servicing them....
10 Pages (2500 words) Essay

NGOs: A Double-Edged Blade

In the last 4 decades, the world has witnessed an exponential growth in the civil society.... As of the year 1993, there were over 28,900 international NGOs worldwide.... Out of this number more than 20,000 NGOs were based in Third World countries (Mujih 2012).... … Without doubt, the rise of NGOs after the end of the Cold War era was met with high approval since most of the charity societies sought to help failing economies attain stability....
9 Pages (2250 words) Essay

Aid Has Been Largely Ineffective in Promoting Development in Africa

"aid Has Been Largely Ineffective in Promoting Development in Africa" paper addresses the relationship between aid provided by the rich nations in Africa and its implications.... In the past 60 years, the continent has received an estimated amount of $1trillion in terms of developmental aid from rich foreign nations.... ence, assessing and evaluating the impact of aid provided by rich nations on the African countries has created controversies among the interested parties....
12 Pages (3000 words) Coursework

The Necessity of Foreign Aid

This essay "The Necessity of Foreign aid" presents the effects of foreign aid, through organizations such as USAID, UKAID, DFID, and many more.... hellip; Dambisa Moyo gives a concrete argument when she views that aid should be invested with a process that is domestic, in turn creating jobs for locals.... Donating goods from big organizations to the locals as aid does not assist locals.... The idea of foreign aid came in place....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us