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Saturday 10 January 2015

Aid is the cause of Poverty in Africa.

Which is the best path for Africa to develop. There have been various suggestions to this question. One school of thought is that Africa needs aid, lots of it, in order to develop. The other school of thought is that Africa needs to be left on its own, so that it feels the pinch, and gradually begin to make headway in development. Such proponents argue that aid is the cause of poverty in Africa. So, which one should we believe. I believe that aid is not the panacea to Africa's development. Since independence, trillions of dollars have been poured into Africa, and yet, there is no proof that the aid has translated into meaningful development for the continent.

In her best selling book, Dead Aid: Why Aid is Not Working and Why There is a Better Way for Africa, Zambian economist Dr. Dambisa Moyo argues that aid is not the solution to the continent's underdevelopment. She argues that what the continent needs is better leadership, and management of
finances. Besides, she argues that the aid does not help local communities, but instead, only goes to a few well connected individuals through various corruption channels. She has a fervent supporter in Andrew Rugasira, a Ugandan coffee magnate, who argues that trade and not aid is the panacea to the continent's underdevelopment.

True, there are areas where aid could be of great help. For instance, aid is especially important in humanitarian situations, and such instances as hunger, famine, or provision of basic education makes it to be an important component of African governments' budgets. However, aid has also led to a proliferation of NGOs, and have not created an end plan. This has led to a culture of dependency, and destroyed local economic activities. To this end therefore, aid may not be the panacea to the continent's problems. What Africa needs is a prudent use of its resources, so that it is able to grow on what it can afford, and only take in aid when absolutely necessary.

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