Aid Is Not Working Summary

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Dambisa Moyo's "Dead Aid: Why Aid is Not Working and How There is a Better Way for Africa " is controversial book that attempts to answer the question: Is foreign aid good or bad? Moyo’s Dead Aid is not the first critique of aid as a development tool. Peter Bauer, the Hungarian–born London School of Economics economists, was among the first write against development aid. Hubbard and Duggan in, “The Aid Trap: Hard Truths About Ending Poverty” (2009) is also critical of foreign aid with different qualifications and emphases on other type of aid in terms of development. Dead Aid begins with a foreword written by Neil Ferguson writing. “It has long seemed to me problematic, and even a little embarrassing, that so much of the public …show more content…

Moyo argues the failure of African countries in terms of sustainable long-run growth be a confluence of some factors: “ geographical, historical cultural, tribal and institutional … while each of these factors may be part of the barriers in different degrees, in different countries, for the most part African countries have one thing in common- they all depend on …show more content…

In other countries such as Singapore, Mauritius and Costa Rica “where there is positive environment, FDI will flow and contribute to sustainable development” (p.113). But investment in aid-ridden African countries is discouraged by having bad reputations which suggest that “it is easy for others to take property away, either at gunpoint or through corruption” (p.113). She adds that, in order to prepare the situation for encouraging investment and assisting aid to work, African countries need democratic rule, in “democratic environment can jump-start economic growth” (p.40).

African countries would be able to approach double-digit economic growth without aid. The key is neoliberalist support for investment friendly infrastructure, job creation and the strengthening private sector. Moyo suggests a series of aid-free keys in terms of finance development in African countries:
Reconsideration of international bond market and, support for supplementary Chinese investment for pushing free trade

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