: "Let's hope you're right. Thank you very much for talking to us".
Guest: "Thank you very much.
".
The very humble guest in question is Ms.
Dambisa Moyo, talking about her book ‘
Dead Aid’ on Australian television.
‘Dead Aid’ is the new development book en vogue, which offers unsophisticated analysis to come up with an unusual conclusion: aid is the cause of everything that’s wrong in Africa. Not
‘associated with’, not
‘exacerbates’: is THE cause.

Her devil is the ‘aid industry’, apparently a cabal of academics, NGOs, governmental and multilateral organisations whose apparent raison d’être is to spend aid money, purposefully or inadvertently harming their recipients to maintain them in poverty.
Let’s dig deeper into her arguments.
Before I comment on the book though, allow me to underscore that I cringe when an author is supposed to be read just because they are African (or Arab, or Muslim, or Faroese). A claim, truth be told, never made by the author, but repeated by her supporters, including even in the foreword to her book.
Especially that she spent her early childhood, and has lived since college freshman year – from 1990 until today – between the US and the UK. (doing the math, she must’ve spent her teens, perhaps 10 or 11 years, in Zambia). A fact that I would never hold against her if she weren’t brazen enough to criticize foreign aid fundraisers for ‘not even living in Africa’ - which she doesn’t either.
When someone is presented as giving the
‘Arab view’ or a
‘Bengladeshi perspective’ or such thing, unless they are indeed the foreign minister of Bangladesh or actually represent a view we have no access to – say, Burmese opposition - they’re just seeking a legitimacy they would never hold under solid academic scrutiny.
And this is what this book seems to me.
Past the first two introductory chapters, I decided to add ‘Dead Aid’ to my pile of toilets readings. This is no insult: it’s just a categorization. Said readings need to have certain characteristics, namely be enjoyable, simply written, light-headed, and not require much mental effort.
It does ask a good, albeit often asked question: why hasn’t aid fulfilled its promises in the past years.
But that’s almost all the book’s worth. Save for a few recommendations straight from an Ec-Dev 101 class, the rest is either useless, flawed, or seriously harmful.
The author begins with her conclusion – that aid is a horrible horrible thing – and works her way backwards, attempting the build her case, but only succeeds in making shady
correlations and passing them for straightforward
causality. Her counterfactuals simply aren't. (diamond-rich Botswana? Really?)
I lost track of the number of times sentences are introduced by
‘may be explained by’... (the real answer to which is consistently – “no, it isn’t, stop bullshitting’).
Or, since we’re looking at introductory locutions: her
“there was a sense in some quarters that...” and builds upon the belief of those unidentified ‘some quarters’ to make her point, reminding me of the joke PhD rules: writing ‘there is agreement that...’ in your thesis means ‘two guys at the bar agreed with me’; ‘widespread agreement’ means ‘the bartender agreed, too’. Ms. Moyo seems to operate on the same principles.
Of course, if any graduate student actually referenced and footnoted their paper like she did, they’d be fired for plagiarism.
I happen to have read
Collier’s “
the Bottom Billion” shortly before I read ‘Dead Aid’, and while she borrows many of his arguments and research (there’s very little original research in ‘Dead Aid’) she reaches different conclusions than he does; while Collier’s recommendations usually involve highlighting the detailed point that needs reform – reform is the name of the game for the man, a reasonable position indeed – Moyo’s conclusion is invariably that aid is the devil.
It gets frankly ridiculous after a few chapters.
Added to this her inability – rather her unwillingness – to differentiate between types of aid or to acknowledge that aid has been successful when properly targeted. And not just humanitarian aid, which she hints at as being ok at some point before falling back into the 'all aid' mantra.
Aid critics before her generally fell into two categories: either they assumed that aid is yet insufficient (Sachs, UN Millennium Development Goals...) or, such as Bauer and Easterly, whom she references, called for an in-depth reform of the aid system.
Oh, and they all did their own research...
Her recommendations?The author advocates the recourse to world market bonds, with such convoluted mechanisms – including pooled credit ratings, which the better rated countries will never agree to anyway – that simply won’t happen.
Ditching cheap World Bank loans in favour of more expensive bond markets – because they entail ‘credibility’, and, quote
"more credibility equals more money, equals more credibility, equals more money and so on".Imagine you’re a graduate student: following her logic,
you should refuse a scholarship and get a commercial bank loan instead, because it would push you to work harder.
Which it might, sure. But this expensive money will have to repaid: Hmm. That’s not a concern for her, it seems.
And, apart from that – foreign direct investment, and trade.
Hallelujah.
We’ve been hammering the same two topics for the past two decade, if not longer. We know that this should be the path out of poverty for the developing world. Ms. Moyo is twenty years late.
And while she candidly blames the fall of export revenues on Western protectionism – which is harmful, I agree – she is euphoric about China’s investment in minerals and primary goods – the price of which are unstable and generally decreasing, making her key solution a very temporary one.
She celebrates
AGOA and
EBA (preferential trade concessions by the US and the EU, respectively, aimed at the poorest countries) while we’re already thinking about the phasing out of least developed countries’ preferences under WTO.
Oh. And microfinance. Sure. I think
Muhammad Yunus is
a god, but Grameen Bank loans won’t pay for civil servants salaries. Nor for physical infrastructure.
‘Okay, you 12 million people, you’re a nice lending group now and are all in charge of monitoring one another or you’re not getting the second half of your bridge!’And to convince, or scare her ‘Western’ readers into following her
‘Dead Aid proposals’, she uses, in the same breath – I kid you not –
global terrorism AND
“the Chinese are coming”!
Why the hype, then? Normally a book like that would fall into oblivion very rapidly: it hasn’t (yet). Why is that?
Well, looking around the development arena it is true that Africans, and women, are underrepresented, and an articulate African woman makes a great talk-show guest. Great for ‘Young Global Leaders’ listings, for Time Magazine to profile. It's silly but it's true.
Compare her, for instance, to aid-skeptic Bill Easterly, a remarkable scholar but a much less televised persona.
More importantly, Moyo’s recommendation will be very appealing to many aid-fatigued observers:
‘cut all aid to Africa within 5 years’, she says. Fantastic election material for wannabe politicians: “we will save all the money we send to Africa – and save them in the process” sounds like a great sound bite in a speech! In these times, particularly, when aid programmes are expected to be curtailed with the current world economic crisis, this plan is music to many ears.
I’ll add to that some great marketing, and embarrassing mistakes on the part of those who disagreed – chiefly the One campaign, whose internal emails were leaked and allowed for a mini-scandal to be exploited by the ‘Dead Aid’ publishers.
Ms. Moyo must be challenged – in an academic arena, not on Oprah. That should easily put her arguments down once and for all. It is sad that it has come to that, and I am confident she could’ve contributed positively to the aid debate, rather than hammer her damaging one-point plan. Because anyone who has worked in foreign relief knows that, very often – aid saves lives.
Less than we want, less than it should; but we’re working on improving it. ‘Dead Aid’ isn’t.
*
UPDATE - Jeffrey Sachs has a word to say about Moyo's 'ideas' -
and he is pissed. A short and good read.
Ah, you chose to read this anyway. Good for you :)
So Mali informs Toufik she's having an abortion - but decides to keep the baby anyway, telling her parents that the father is a married man and she wants nothing with him (surprisingly, they don't need to know more).
9 years later, the baby is a cute 9-year old (duh) girl named Shiran. Tawfik contacts Mali, who tells him they have a daughter. She argues with her parents - good scene here - and the film ends with Mali and Shiran on the beach, as Tawfik joins them.