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Interesting take on aid to Africa. It's
also interesting that Jeffry Sachs has become "the academic guru of the End Poverty movement". Sachs
was a very prominent adviser to the Yeltsin government in Russia in the early
1990s after the collapse of communism. He was instrumental in developing
the privatization scheme that ultimately impoverished ordinary Russians and put
state assets into the hands of the oligarchs. IMHO, his performance in
Russia does not make me confident that he will do any better in
Africa.
Ed
Marcus Gee
Africa needs more than moneyIt's easy to be cynical about Live 8 and the campaign to "make poverty history." It's even easier to be cynical about the fine words that will emanate from the Group of Eight leaders in Scotland this week. Grandstanding rock stars and pious politicians -- we have seen it all before, haven't we? In fact, the Live 8/G8 extravaganza has already done a power of good. The rock concerts, celebrity TV spots and assorted other stunts orchestrated by Bono, Bob Geldof and crew have put the issue of world poverty at the top of the international agenda. Partly because of them, the world leaders gathering in Gleneagles will cough up billions of dollars in new money for debt relief and development aid. But if cynicism is misplaced, skepticism is not. The taxpayers of the G8 countries whose leaders are pledging all those billions have every right to wonder whether the money will simply disappear down a rat hole as it often has in the past. The question is not whether rich countries really mean it when they say they want to help the poor. There is no lack of compassion and no shortage of money. Canada alone is doubling aid to Africa by 2008. The question is whether the recipients can make good use of it. As Freedom House, the U.S.-based human-rights group, points out, "aid, no matter how well intentioned, is only as effective as the governments receiving it." Freedom House took a look at the quality of governance in 30 countries, including nine in sub-Saharan Africa. Many of these countries are the recipients of ramped-up development aid. What it found was disturbing. Though Third World governments almost all pay lip service to the need to fight corruption and operate effectively, few are following through. Because judges aren't independent enough or the media free enough to act as a check on government malfeasance, much of the money intended for the poor goes to waste. Ethiopia is not the only example. A World Bank study has shown that, in Guinea, Cameroon, Tanzania and Uganda, 30 per cent to 70 per cent of government medicines vanished into the black market instead of reaching patients. Because of figures like that, donor countries have been demanding better governance from aid recipients. That was the thrust behind the New Partnership for Africa's Development, which came out of the G8 summit in Kananaskis, Alta., in 2002. Under NEPAD, African governments committed themselves to raising standards of human rights and governance if they were to receive rich-country aid. Better governance is also the notion behind the Millennium Challenge Account set up by the U.S. government. It rewards countries that respect the rule of law, rule democratically, invest in their citizens and allow economic freedom to flourish. Yet, for pushing the MCA approach and expressing doubts about flooding poor countries with new foreign aid, George W. Bush is being painted as the skunk at the Gleneagles picnic. He shouldn't be. The idealism of the End Poverty campaign is inspiring, but it needs to come with a dose of realism. If the rich world is going to spend billions fighting Third World poverty, the least it can demand from the governments that get the money is honesty and good management. |
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