AFRICA AND THE FOREIGN AID VIRUS.

A couple of weeks ago, i suggested to a friend, Hamza Moshood (@thehamzay) to share an opinion on any subject of interest so i publish it on this blog. And this was what he chose to discuss: Africa And Aid Dependency. Enjoy it

My recent ‘for how long are we going to be indebted to them?’ musing’, Dr. Mensa Otabil’s word of advice to the continent of Africa on the issue of borrowing. President John Dramani Mahama’s “I’ll keep borrowing...for developmental purposes”, a rebuff to Dr. Mahamud Bawumia criticisms of the economy.

Put all of these premises together and the outcome is this article I’m writing to put in my two cents (or pesewas) worth thoughts on the problem of Africa and her over-dependence on foreign aid and whether these loans are doing us any good at all.

We, as a continent, have adopted and nurtured the habit of borrowing since our countries started gaining independence. Yet, several decades later, where are we? We can’t have these ‘development partners’ lending us money for the rest of our existence. We can’t forever be borrowers. What’s the essence, then, of our independence if several decades down the line, we still draw AID DEPENDENT budgets.

“Not all help is good help. Actually, some help can cripple you” 

– Dr. Mensa Otabil.

Take for instance, a man who runs cup in hand to his well-to-do neighbours every other day for money to feed his family. Can such a man claim to be independent? Of course not. We can only conclude that such a man is poor, or simply lazy or irresponsible. The man is Africa. Now to the question: Is Africa poor? Not really. What’s our problem then? Our leaders are being shady, lazy and irresponsible, I think.

Also, as a continent that prides itself with how much we love and cherish our children (future leaders we call them) what good are we doing them leaving behind debts for them to inherit with this incessant borrowing we’re indulging in? The only legacy I see us leaving behind is a mentality of dependence. A truly caring parent would want their children to inherit a property that’s worth something. 

A well meaning parent who has no property to leave behind would strive to, at least, not saddle his surviving kids with too much debt. Last time I checked (8th April 2014), every one of the 25 million Ghanaians owed approximately 2,000GHC per our national debt.

“Africa’s too busy selling out the oil, while we stay slaves to IMF and World Bank loans” – Blitz Da Ambassador                 

ERITREA: The Exception To The Rule

Eriteria (shaded region)

This East African country, just 21 years old, is the sole beacon of hope on the continent of Africa as far as self-reliance is concerned. Eritrea, since 2005, has said NO to foreign aid and stuck to her guns. This country realized that, foreign aid (loans), were rather an impediment to growth; a conduit for corruption and hasn’t looked back. President Isaias Afewerki, who took this firm, daring and commendable stance, has banned any form of aid; either directly or through third party NGOs. 

Prez. Afewerki has gone from being hailed by the US as the ‘George Washington of Eritrea’ to being compared to Kim Jong II. The U.S. and the U.N. have both accused Eritrea of being involved with Al Shabab, and by extension Al Qaeda. It’s rather interesting that the U.S. was blind to all of these facts when Eritrea was borrowing from the Bretton Wood Institutions (I.M.F. and World Bank, typical double standards). 

 

Eritrea's Isaias Afewerki bans Foreign Aid to his nation

Tell me you don’t think these donors have ulterior motives. You ask how Eritrea is doing economically in the absence of foreign aid, ten years now and the answer is, they’re doing fine. Way to go, Eritrea.

“Out of debt, out of danger” – Charles Bridges

In an attempt to “develop” our countries, we’ve been caught in a vicious and endless cycle of contracting POLICY CONDITIONED loans that come with interests, of course – as much of the money that comes in, come in form of loans and not donations. Ironically, this is rather detrimental to any developmental plans that we have. We can only start talking about real development when WE STOP BOWWORING and bring to an end our shameful habit of dependence on foreign aid.

In recent times, a growing number of economic experts have been taking the same position as the Government of Eritrea by stating aid to Africa is doing more harm than good. One of the leading exponents of this school of thought is Dambisa Moyo who described foreign aid as, "easy money that fosters corruption and distorts economies, creating a culture of dependency and economic laziness."  

Economist Dambisa Moyo is a leading advocate against Foreign Aid

Weaning once off foreign aid is going to be a tough call. Yes, it’s going to be hard in the short-term. But African countries shouldn’t be myopic. They should rather look at the bigger picture; the FUTURE. It’s just the way life goes [no pain, no gain or better still, no guts, no glory]             

It’s just like blood had to be shed by our forefathers and mothers for our freedom and independence to be won –the independence that we’re rubbishing today by allowing our nations to be manipulated and controlled by these exploitative donor agencies. China did it, Eritrea’s doing it, and the rest of us can, and should do it.

And I.M.F., World Bank and all of your brothers and sisters, if you really love us like you want us to believe, don’t give us fish anymore, teach us how to fish. Hell, don’t. Just stay away from us.

“He who feeds you, controls you” – Thomas Sankara.

*turns up Seun Kuti’s “IMF”*