Dambisa Moyo- Is she Dead Wrong?

She is a beautiful African woman with brains to die for and author of a sensational book  DEAD AID that has rocked the world of International Development.

Amongst those who have reviewed her thesis is   Chola Mukanga a fellow Zambian and Head of Aviation Economics at the Department for Transport UK.

http://www.zambian-economist.com/2009/03/dead-aid-by-dambisa-moyo-review.html

Chola has said that he is not conviced by Dambisa’s arguments and that her radical solutions are ineffective and could potentially lead to failed states.

I do agree that turning off the AID tap in 5 years could potentially be catastrophic and that AID  from the Chinese is not the answer to ending poverty in Africa nor are remittances from the diaspora. I am very nervous about the Chinese involvement in Africa!

I however don’t believe that we should sit back and do nothing. I understand that some if not all  sub-Saharan  African countries rely on AID  to make up budget deficits. My question is, how effective are these governments are at collecting Taxes?

Most African countries have a large percentage of people in informal employment/economic activities that go untaxed mostly because there are no systems and processes  in place to gather this revenue. How much would this revenue be worth to these governments, if it  were collected? Could it go some way in balancing those government budgets perhaps?

Whilst  AID  remains crucial in cases of emergencies and jump starting African economies it also creates dependency and Chola asks how can this AID be made smarter, better and beneficial to poor?

I am not an economist but common sense tells me that so long as African governments continue to see AID as the only way to balance their books then we are in trouble.

A process that will see countries reducing their reliance on  AID  is desirable and in my mind this process includes increased Trade but through a VALUE ADDED system as opposed to exporting of raw materials, as well as increased internal revenue collection through income taxes.

Chola’s has point to some extent AID cannot be turned off in 5 years without due regard to the consequences likewise  Dambisa’s solutions would require hard work and commitment on the part of  African governments  and citizens as well as donor governments but not doing anything is not an answer

What are your views?

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Does size matter?

Some African countries  are to small too compete economically that is according to Sudanese born Mo Ibrahim

But does he have a point?  Will the reunion of Africa in economic terms be the answer to poverty and hunger?

When I was a young girl we had the East African community,  the adults at the time say the community was very good for economic growth and education, students   from within the community could apply to and attend any University within the community.

I am not quite sure why the community broke up but word is some external forces were threatened by its success, so it had to go! Really, I sicnerely don’t know, but this as a reason sounds far fetched!

Interesting though I have just finished reading  WARS GUNS AND VOTES DEMOCRACY IN DANGEROUS PLACES by Paul Collier and he makes a similar point but as it relates to public goods provision.

My question, if size does mater in terms of public goods provision and economic growth,  Luxembourg must be one of the smallest countries  out there but  why aren’t  her citizens  dying of hunger or living in abject poverty.

New economic communities are emerging in Africa SADC, COMESA even the East African community has been given a new lease of life and has new member countries. Is this the futre for Africa? Will these organisations offer and deliver member states and their citizines new hope. How much clout do they have in terms negotiating on international stages?

Would like to hear from you if you an opinion on any of the issues  raised here

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The economic consequences of domestic violence

When I was at University one of the core modules for my area of study Housing Management and development was DOMESTIC VIOLENCE AND THE LAW. Domestic violence was considered in the context of property rights but for the purpose of this article I would like to look at the impact of domestic abuse on the economy.

A tall order perhaps but bear with me whilst I illustrate my point.

The fact about domestic abuse is that it ebbs away at the confidence and self esteem of the person at the receiving end of it. It makes them question their self worth making ineffective in all areas of their lives.

Imagine if you will a woman who is responsible for ensuring that the family is fed, clothed and has to work the land to grow the food to feed the family but is beaten by her spouse on a daily basis!

In some cases she is indeed the sole bread-winner in the family as the man’s income is spent on alcohol! What sort of life would children growing up in such a household have to look forward too!

It is widely accepted well as least in the case of African countries that the economic development of these countries rests with women. That being the case what would happen if women are ordinarily unable to participate in economic generating activities due to domestic abuse?

Does society owe such women the duty of care to secure the economic development of a county? What form should that care take?

I am happy to note that in Nigeria steps are being taken to address the issue of domestic abuse. The idea is to provide some for of safe house for women and children fleeing domestic abuse. You can read the rest of the story here

The question is most African countries are so conservative, how will such a facility go down in society? Will women have the courage to seek support and refuge in such a facility?

What will their peers make of it?

My first job as a Social Housing practitioner saw me in charge of just such a facility here in the UK and it gave women new hope and a chance to rebuild their lives and those of their children.

I am therefore hopefully that this type of facility becomes common practice in African countries too.

 

As usual your points of view are welcome

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