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"For God's Sake, Please Stop the Aid!" - Kenyan Economics Expert
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| VERTiG0 |
http://service.spiegel.de/cache/int...,363663,00.html
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The Kenyan economics expert James Shikwati, 35, says that aid to Africa does more harm than good. The avid proponent of globalization spoke with SPIEGEL about the disastrous effects of Western development policy in Africa, corrupt rulers, and the tendency to overstate the AIDS problem.
SPIEGEL: Mr. Shikwati, the G8 summit at Gleneagles is about to beef up the development aid for Africa...
Shikwati: ... for God's sake, please just stop.
SPIEGEL: Stop? The industrialized nations of the West want to eliminate hunger and poverty.
Shikwati: Such intentions have been damaging our continent for the past 40 years. If the industrial nations really want to help the Africans, they should finally terminate this awful aid. The countries that have collected the most development aid are also the ones that are in the worst shape. Despite the billions that have poured in to Africa, the continent remains poor.
SPIEGEL: Do you have an explanation for this paradox?
Shikwati: Huge bureaucracies are financed (with the aid money), corruption and complacency are promoted, Africans are taught to be beggars and not to be independent. In addition, development aid weakens the local markets everywhere and dampens the spirit of entrepreneurship that we so desperately need. As absurd as it may sound: Development aid is one of the reasons for Africa's problems. If the West were to cancel these payments, normal Africans wouldn't even notice. Only the functionaries would be hard hit. Which is why they maintain that the world would stop turning without this development aid.
SPIEGEL: Even in a country like Kenya, people are starving to death each year. Someone has got to help them.
Shikwati: But it has to be the Kenyans themselves who help these people. When there's a drought in a region of Kenya, our corrupt politicians reflexively cry out for more help. This call then reaches the United Nations World Food Program -- which is a massive agency of apparatchiks who are in the absurd situation of, on the one hand, being dedicated to the fight against hunger while, on the other hand, being faced with unemployment were hunger actually eliminated. It's only natural that they willingly accept the plea for more help. And it's not uncommon that they demand a little more money than the respective African government originally requested. They then forward that request to their headquarters, and before long, several thousands tons of corn are shipped to Africa ...
SPIEGEL: ... corn that predominantly comes from highly-subsidized European and American farmers ...
Shikwati: ... and at some point, this corn ends up in the harbor of Mombasa. A portion of the corn often goes directly into the hands of unsrupulous politicians who then pass it on to their own tribe to boost their next election campaign. Another portion of the shipment ends up on the black market where the corn is dumped at extremely low prices. Local farmers may as well put down their hoes right away; no one can compete with the UN's World Food Program. And because the farmers go under in the face of this pressure, Kenya would have no reserves to draw on if there actually were a famine next year. It's a simple but fatal cycle.
SPIEGEL: If the World Food Program didn't do anything, the people would starve.
Shikwati: I don't think so. In such a case, the Kenyans, for a change, would be forced to initiate trade relations with Uganda or Tanzania, and buy their food there. This type of trade is vital for Africa. It would force us to improve our own infrastructure, while making national borders -- drawn by the Europeans by the way -- more permeable. It would also force us to establish laws favoring market economy.
SPIEGEL: Would Africa actually be able to solve these problems on its own?
Shikwati: Of course. Hunger should not be a problem in most of the countries south of the Sahara. In addition, there are vast natural resources: oil, gold, diamonds. Africa is always only portrayed as a continent of suffering, but most figures are vastly exaggerated. In the industrial nations, there's a sense that Africa would go under without development aid. But believe me, Africa existed before you Europeans came along. And we didn't do all that poorly either.
SPIEGEL: But AIDS didn't exist at that time.
Shikwati: If one were to believe all the horrorifying reports, then all Kenyans should actually be dead by now. But now, tests are being carried out everywhere, and it turns out that the figures were vastly exaggerated. It's not three million Kenyans that are infected. All of the sudden, it's only about one million. Malaria is just as much of a problem, but people rarely talk about that.
SPIEGEL: And why's that?
Shikwati: AIDS is big business, maybe Africa's biggest business. There's nothing else that can generate as much aid money as shocking figures on AIDS. AIDS is a political disease here, and we should be very skeptical.
SPIEGEL: The Americans and Europeans have frozen funds previously pledged to Kenya. The country is too corrupt, they say.
Shikwati: I am afraid, though, that the money will still be transfered before long. After all, it has to go somewhere. Unfortunately, the Europeans' devastating urge to do good can no longer be countered with reason. It makes no sense whatsoever that directly after the new Kenyan government was elected -- a leadership change that ended the dictatorship of Daniel arap Mois -- the faucets were suddenly opened and streams of money poured into the country.
SPIEGEL: Such aid is usually earmarked for a specific objective, though.
Shikwati: That doesn't change anything. Millions of dollars earmarked for the fight against AIDS are still stashed away in Kenyan bank accounts and have not been spent. Our politicians were overwhelmed with money, and they try to siphon off as much as possible. The late tyrant of the Central African Republic, Jean Bedel Bokassa, cynically summed it up by saying: "The French government pays for everything in our country. We ask the French for money. We get it, and then we waste it."
SPIEGEL: In the West, there are many compassionate citizens wanting to help Africa. Each year, they donate money and pack their old clothes into collection bags ...
Shikwati: ... and they flood our markets with that stuff. We can buy these donated clothes cheaply at our so-called Mitumba markets. There are Germans who spend a few dollars to get used Bayern Munich or Werder Bremen jerseys, in other words, clothes that that some German kids sent to Africa for a good cause. After buying these jerseys, they auction them off at Ebay and send them back to Germany -- for three times the price. That's insanity ...
SPIEGEL: ... and hopefully an exception.
Shikwati: Why do we get these mountains of clothes? No one is freezing here. Instead, our tailors lose their livlihoods. They're in the same position as our farmers. No one in the low-wage world of Africa can be cost-efficient enough to keep pace with donated products. In 1997, 137,000 workers were employed in Nigeria's textile industry. By 2003, the figure had dropped to 57,000. The results are the same in all other areas where overwhelming helpfulness and fragile African markets collide.
SPIEGEL: Following World War II, Germany only managed to get back on its feet because the Americans poured money into the country through the Marshall Plan. Wouldn't that qualify as successful development aid?
Shikwati: In Germany's case, only the destroyed infrastructure had to be repaired. Despite the economic crisis of the Weimar Republic, Germany was a highly- industrialized country before the war. The damages created by the tsunami in Thailand can also be fixed with a little money and some reconstruction aid. Africa, however, must take the first steps into modernity on its own. There must be a change in mentality. We have to stop perceiving ourselves as beggars. These days, Africans only perceive themselves as victims. On the other hand, no one can really picture an African as a businessman. In order to change the current situation, it would be helpful if the aid organizations were to pull out.
SPIEGEL: If they did that, many jobs would be immediately lost ...
Shikwati: ... jobs that were created artificially in the first place and that distort reality. Jobs with foreign aid organizations are, of course, quite popular, and they can be very selective in choosing the best people. When an aid organization needs a driver, dozens apply for the job. And because it's unacceptable that the aid worker's chauffeur only speaks his own tribal language, an applicant is needed who also speaks English fluently -- and, ideally, one who is also well mannered. So you end up with some African biochemist driving an aid worker around, distributing European food, and forcing local farmers out of their jobs. That's just crazy!
SPIEGEL: The German government takes pride in precisely monitoring the recipients of its funds.
Shikwati: And what's the result? A disaster. The German government threw money right at Rwanda's president Paul Kagame. This is a man who has the deaths of a million people on his conscience -- people that his army killed in the neighboring country of Congo.
SPIEGEL: What are the Germans supposed to do?
Shikwati: If they really want to fight poverty, they should completely halt development aid and give Africa the opportunity to ensure its own survival. Currently, Africa is like a child that immediately cries for its babysitter when something goes wrong. Africa should stand on its own two feet.
Interview conducted by Thilo Thielke
Translated from the German by Patrick Kessler |
Gotta love those things that all economists know and all politicians disbelieve .
How do you feel about this article? Discuss. |
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| xKLx |
We discussed this in our Polsci class...IMO i agree with it
In a sense because they are given so much money in foreign aid that the interest becomes so high that in the future they end up owing additional billions, also that when they are given foriegn aid, their very much bound to a strict contract in which they have to agree and do whatever the IMF or organization wants. The pretty much loose political power in making policy changes. In the end, most third world countries begin to have more imports vs exports, so their domestic market begins to fall since the people have to buy more exports (becomes cheaper then domestic) vs domestic because its cheaper..
Its quite unfortunate, though the intent is good, i agree they should halt with providing aid (more so just provide food than anything) |
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| karim |
There's nothing debatable in that article, and thankfully, this isn't the first I saw and heard of economic restructuring plans in Africa. No longer are they calling for more aid to Africa, they are calling for a revision of trade policy, construction of programs to help make these African nations a player in the world economy, and most importantly DEBT RELIEF (which you hear of time and again). These are what the G8 leaders should be discussing, these are what I'm hoping they bring a solution to.
:)
Karim |
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| Jayx1 |
That article is an affront to all the bleeding heart do gooders who drive around in their SUVs.
Way to stick it to them. I think that its time that we let africa pull up their own socks. Oh and debt relief is the same as sending money to corrupt regimes. It will do nothing for the people. |
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| VERTiG0 |
I love the G8 protesters though.
"MORE AID FOR AFRICA"
Great! Way to protest blindly because it's the cool and hip thing to do these days! |
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| Endlesswave |
| I agree with this to a certain extent. The thing is they should obviously deal with the corruption if that is what is the main thing that is causing all of the poverty to begin with. Then give aid...not just blindly give aid and throw money at something. |
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| Jayx1 |
| quote: | Originally posted by Endlesswave
I agree with this to a certain extent. The thing is they should obviously deal with the corruption if that is what is the main thing that is causing all of the poverty to begin with. Then give aid...not just blindly give aid and throw money at something. |
How can afticans be expected to deal with corruption when canadians cant even do so??
Sheesh! |
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| awishabear |
I studied something like this in my world issues class in high school (*pat on the back for remembering high school stuff*). But anyway, the hardest part about getting Africa to develop itself is the international producers, the companies that feel they need to expand everywhere, thinking that since they open a factory or outlet in one place, it will benefit the whole nation or country or whatever. They don't understand that it's driving indigenous people out, actually creating the poverty and starvation that they are experiencing. A lot of what I studied had to do with farmers and import/export policies in western Africa, and it sucks for them because with the huge companies (agriculture, manufacturing, oil, whatever), all the farmers manage to grow is export goods so that they can bring in some cash.
WHICH SUCKS because this is part of the problem - the article says all development aid needs to stop. In order for ALL development aid to stop, Africa's gotta go back to square one. They'll have to work from their roots up, and that will mean quitting the exporting of commodities like sugar and coffee. At least, not exporting as much of it.
Gah... World politics is NOT my strong background, but it's so hard to avoid these days. Forgive me if it sounds like I'm ranting. Cale said discuss. I discussed. I guess that's what I get for being an English minor. |
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| Jayx1 |
| quote: | Originally posted by awishabear
I studied something like this in my world issues class in high school (*pat on the back for remembering high school stuff*). But anyway, the hardest part about getting Africa to develop itself is the international producers, the companies that feel they need to expand everywhere, thinking that since they open a factory or outlet in one place, it will benefit the whole nation or country or whatever. They don't understand that it's driving indigenous people out, actually creating the poverty and starvation that they are experiencing. A lot of what I studied had to do with farmers and import/export policies in western Africa, and it sucks for them because with the huge companies (agriculture, manufacturing, oil, whatever), all the farmers manage to grow is export goods so that they can bring in some cash.
WHICH SUCKS because this is part of the problem - the article says all development aid needs to stop. In order for ALL development aid to stop, Africa's gotta go back to square one. They'll have to work from their roots up, and that will mean quitting the exporting of commodities like sugar and coffee. At least, not exporting as much of it.
Gah... World politics is NOT my strong background, but it's so hard to avoid these days. Forgive me if it sounds like I'm ranting. Cale said discuss. I discussed. I guess that's what I get for being an English minor. |
Leftist bull. You know why China is about to become the world's biggest economy? 30 years of what you just described.
Sure its tough at first but look at China. Before that was thailand and taiwan and before that japan. No one can say these places didnt benefit from foreign use of cheap labour and resources. |
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| awishabear |
I'm not saying EVERYONE went into uber depression mode, I was just saying it's gonna be hard for them to pull it all together. I think they'll do it, eventually, maybe not in this lifetime, but it can be done.
don't yell at me *sob* |
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| Jayx1 |
LOL no one is yelling hehehehe
but yes what people dont understand is that cycles take awhile to develop. You cant change the world in a day. As long as there is progress there is success. |
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| awishabear |
Mkay good I contributed in the right way.
Have you ever been to Africa?? |
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