Critique on Dead Aid by Dambisa Moyo - Essay Example

? Critique on Dead Aid by Dambisa Moyo Task Introduction Dead Aid by Dambisa Moyo talks about how billions of dollars given to African countries have negatively affected African economy. Moyo argues that the aid donations have crippled the economy of the Africa instead of alleviating and improving it (Collier, 2009). Aid is described as a corrupting agent and a parasitic contagion and goes further to relate it with biological metaphors, which refers African economy as physiological organism. According to research, Africa receives the highest potion of foreign aid, which is approximated to 2 trillion US dollars in the past years. Dambisa Moyo has an exceptional background on the African economy, since she has degrees from prominent learning institutions such as Harvard and Oxford. She has also worked in major organization globally such as World Bank and Goldman Sachs (Collier, 2009). The concept of the book is accepted because it has outstanding information. The summary of the research question of the argument, and theoretical framework of the Dead Aid is aptly analyzed. The internal analysis of Moyo’s book is examined in details by stating the type and eminence of evidence used. Lastly, a discussion on the input of the book to the larger debates on Globalization is discussed aptly. Part 1 Summary of the Research Question of the Argument, and Theoretical Framework of the Book The summary of the research questions of the argument and theoretical framework from Moyo’s Dead Aid is; ‘Is foreign aid affecting African economic progression negatively?’ The basic argument shows whether foreign aid set for Africa has failed, secondly, whether it has accelerated poverty in the African continent. Finally, it recommends other effectual ways of improving economic development instead of relying on foreign aid. The book discusses whether foreign aid granted to African countries has caused monumental injury, which damages the intended sectors such as political and monetary to be sustained. Part 2 Internal critical evaluation of the book: type of evidence used, quality of the evidence Case selection & how well does the evidence support the argument? The case selection of the book affirms how Moyo states causes and effects of foreign aid in African states. She tries to uncover the real truth to the world, which shows the failure of western countries to put extra efforts in finding other alternatives of making Africa’s economy stable and strong, despite the fact that their intentions of offering the donations are constructive. Thus, Dead Aid argument uncovers the ideological myth of aid as the core reasons for the underdevelopment of African states and the undermining the moral principle that makes granting of foreign aid as a political and ethical imperative. The case selection of the book tries to expose the failures of foreign aid in improving the economic status of Africa by stating the historical ascription of aid (Moyo, 2009). She states various methods western countries used to give out foreign aid as a tactical maneuver throughout the Cold War period. She also states the practical inefficiencies of handling the huge sum of foreign money by leaders in the economically deprived countries. She also blames the defective structure of aid that is implemented by countries, which has failed to bring economical change to African states. In her book, she highlights the growth rates of >5% and the high rankings of African stock exchange as evidences to show how the economy has improved in the states in some instances. These are some of the evidence and strengths of Dead Aid that approves the argument put across. Nonetheless, Moyo emphasizes by stating that Africa will continue to be the same, despite the positive shown and depicted by the progress of economic status. Another issue she brings to light is that individuals from African states will continue to remain in the same poor condition, as long as it receives foreign aid from diverse western counties. She illustrates the current condition in Africa and state that the populace living in Africa is living in a devastating condition compared to the early years during colonization and getting of independence. Moyo states that “Africa’s real per capita income today is lower than in the 1970s, leaving many African countries at least as poor as they were forty years ago” (Moyo,2009, 5). African continent has not been favored by the prior and current world system, which has failed to make it thrive in economic sectors. She reports on the incident that happened in 1980, when the global population living in an exceptional poverty went down. Individuals living in underprivileged lives in sub-Saharan state went down when the rates of poverty increased to 50% high. In recent research, Moyo argues that the figure of African individuals leaving in exceptional poverty have doubled compared to the initial figure recorded in 1980’s. The tally of African individuals existing in acute poverty had risen to 600 million, which is evidence used to indicate how the number had increased drastically compared to the early years when the populace by Moyo, was lesser. In reality, these are some of the evidence and strengths of the book that approves the argument Moyo is putting across. The fact is that Africa is continuing to suffer economically, whereas other countries are enjoying economic augmentation globally, despite the fact that it gets the largest portion of foreign aid given to underprivileged countries. According to statistical data given in the book, poverty in Africa had increased from 11% to a staggering 66%, since the time when the rich western countries began to give out foreign aid. Other developing countries such as ‘China’, ‘Brazil’ and ‘Russia’ have managed to stabilize and improve the economic status of their country, why not Africa (International Monetary Fund. External Relations Dept., 2009). Moreover, these are some of the evidence and strengths of the book that supports the argument Moyo is putting across The core reason stated by Moyo is the foreign aid, which she believes creates a quiescent mentality to African populace, hence lagging behind other developing nations. Glaring weaknesses, how to improve it The weakness of the concepts given out by Moyo approves that many individuals worldwide support act of giving out foreign aid to depriving countries. For example, there was a demonstration in London Street wanting the rich western countries to increase their efforts in giving out financial backing to African countries. They were targeting the G2o summit and heartening them to fight paucity by increasing the aid. Secondly, Dead Aid spreads the message that ‘growth assistance’ is wrong to countries in Africa, and should be smeared out. I believe Africa will not manage to maintain the economic standard they are enjoying at the moment, when the moneyed countries stop giving out funds in the next one year. Thirdly, Moyo also contradicts herself by stating that development assistance is purely desecrated poverty. The statement contradicts with her initial comment, which stated ‘orchestrated worldwide pity’ (Moyo, 2009). Fourthly, African countries obtain billions of foreign aid that does little in improving the economic standards of people. I think she could have emphasized on stopping taxation to citizens of the countries, since they access a colossal sum of money freely rather than arguing that aid is of no help in improving the economic status of Africa. According to the current research, many African children die early because of the following of the disease such as AIDS, malaria and diarrhea. I think foreign aid has amicably assisted such children, since they live to see their children and exist happily in their lives. Part 3 A discussion of the contribution of the book to the larger debates on Globalization The contribution of the book to the larger debates on globalization being addressed on the book is that the depriving economic status of Africa should not be taken that western countries are giving out a small amount of foreign aid. It is true that they give enough capital, which deciphers economic problems in the African continent. She calls for the termination of foreign aids, which she deems will make the countries independent (Dhungel, 2011). It is important to note that Moyo argument majorly rests on culture, regardless of the fact that she has used collected data and statics on political economy. She states that ‘we live in a culture of aid’ in her first statement in the book (Moyo, 2009). Consequently, aid is figured as a cultural problem that should be solved before it generates a setback. Her argument lies on the myth of aid, which has the idea that aid is necessary ‘good’, which she wants individuals to understand the both sides of the word ‘good’; as a product of charitable commodity, and a moral virtue. The contribution of the book to the larger debates on globalization shows that giving of funds to depriving countries in Africa is termed as a moral essential and a coherent economic solution. The myth depicts giving of foreign aid as unquestioned and unquestionable act and decision of the rich countries globally. Nevertheless, Moyo advises the world that living in a ‘culture of aid’ to let the myth make us believe that without aid countries can not flourish and thrive in improving their economy (Dhungel, 2011). Consequently, giving of aid by the industrialized states is seen as a moral economy that shows pity to Africa. They are buoyant morally to participate in giving out donations, to save the public image on the public. Moyo views ascription of aid as an ideology, a myth that makes African states poorer compared to the previous time. What is its main contribution? The main contribution of the concepts put across by Dead Aid is that fighting these issues in the society should be viewed as an ethical and humanitarian essential. Another serious weakness of Dead Aid is the inability to suggest relevant methods that can be applied in order to improve the devastating state in Africa and ways African populace can learn in using the funds effectively to the society. Moyo’s fault is that she concentrates in turning the wind mills to prove her point rather than providing a solution to the problem so that her point of view is accepted by readers globally. Lastly, the evidence presented in the book does little in solving the economic status. There is also a large volume of academic research that shows the assenting effects of the foreign aid that is given to African states. Moyo majorly is interested in showing the detrimental effects of the foreign aid, but failed to admit that there occasions when the foreign aid has assisted countries globally (Great Britain, 2009). Consequently, I strongly suggest that African future depends majorly on the leaders they choose and who can efficiently use the foreign aid to improve the infrastructure and economic status of the continent. They should imitate budding countries such as India that has exceptionally worked hard to improve their economy. What are alternative views? With whom does the author agree and disagree? She argues that if loans were given and expected to be given back, the government from the African states would use their funds wisely by collecting their taxes effectively to pay back the loan. Moreover, she states that leaders lose sight on ways of implementing the funds effectively. Giving of foreign aid has raised global debates on whether it is the best way of eliminating poverty in underprivileged countries (Trebilcock & Prado, 2011). The form of foreign aid given to Africa is a sort of concessional loan that contrasting to as grants that are occasionally given out. They are loans that are below market interest rate and have longer pending period compared to commercial markets aid. Critics argued against issuing of loans stating that it resulted and led to debts rather than revenue to the countries. Loans also reduced the progression in improving the economic state of the countries since it disrupted the full concentration of applying the loan effectively. Consequently, grant was favored against loans since it was perceived as ‘free resources’ for effectual investment that can improve the economic status of the continent. Later, there was a small difference in differentiating loans and grants since loans could be forgiven when the recipient failed to pay them and the concessional terms were structure to make the payment of the loans less threatening. These changes are what Dambis perceives as the main reasons for African depriving state. The author has agreed with Jacques Derrida’s concept of the pharmakon, which states that foreign aid can be both poison and remedy. He came up with finding after conducting a research on financial flow. This is similar to Moyo who in instance agrees that foreign aid is good and necessary to the African continent, but majorly insists that it is the major cause of exceptional poverty. The economy of Africa is dilapidating because of the misuse large funds pumped into the continent. What is your personal view on the better side of the debate? In my personal view, I think that Africans have the mentality that comes after getting assistance from rich countries in a difficult situation. Consequently, they fail to work exceptional hard to solve the economic tribulations. The best way of solving the problem is by giving the African states funds in the form of loans. The issuing of loans should have strict measures in order for leaders handling the money can strategize themselves to finish their intended projects at the right time and pay the debts. I think the main reason why Africa does not develop at the expected rate is because of the type of leaders it has. The leaders have the tendency of enriching themselves instead of focusing on developing their countries. Free funds pumped on the African countries should majorly concentrate on assisting areas such as improving health, and edification sectors. African economic progression majorly relies on the type of leaders it has chosen who handle the funds. Conclusion Moyo’s main agenda on her book is that aid in Africa has not worked. According to the research question depicted from Dead Aid it is true that foreign aid has failed to improve the economic status of Africa. Even though critics suggest that Moyo’s evidence is picked from undocumented and incorrect sources, the fact is that African populace has the mentality that depending on foreign aid instead of working hard to improve their depriving economic situation. Work Cited Collier, P. (2009). Dead Aid, By Dambisa Moyo Time to turn off the aid tap? The Independent. Retrieved on April 9, 2012 from Dhungel, B. (2011). Credibility of Development Aid and the Lessons from Rwanda. New York: GRIN Verlag, Great Britain. (2009). Aid under pressure: Support for development assistance in a global economic downturn. London: Stationery Office. International Monetary Fund. External Relations Dept., (2009). Finance & Development, September 2009. Washington DC: International Monetary Fund. Moyo, D. (2009). Dead aid: Why aid is not working and how there is a better way for Africa. London: Allen Lane. Trebilcock, M. J., & Prado, M. M. (2011). What makes poor countries poor?: Institutional determinants of development. Cheltenham, UK: Edward Elgar. Read More