Corruption

Corruption is put forward as one of the reasons AID  does not necessarily get to those that need it as well as one of the reasons why developing countires remain poor.

I recently wrote a blog about my most  recent experience of corruption and I am no where nearer to understanding why folk would be corrupt.

Some questions

  1. How does corruption affect communties
  2. Do you think that Corruption is an institution in itself?
  3. would folk make ends meet if corruption was stamped out completely?
  4. Are politicians inherently corrupt?
  5. Are some countreis/nationalities more corrupt than others?
  6. What are the effects of corruption on developing countries
  7. Have you ever paid a bribe? If so why?

I look forward to hearing from you

Questions about AID to Africa

I would like to invite readers fo this blog to debate issue surrounding AID to Africa. AID  has been flowing into Africa for as long as many of us can remember. However parts of Africa remain desparately poor.

My question is/are

  1. Why is that?
  2. Is AID  the best way to lift Africa out of poverty
  3. How much does the ordinary citizen of any given Western world really understand about AID
  4. Have you got a view about AID to Africa?

What are your views on this matter?

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?