Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa [Paperback]

Dambisa Moyo (Author), Niall Ferguson (Foreword)

Book Description

Publication Date: May 30, 2010 | ISBN-10: 1553655427 | ISBN-13: 978-1553655428 | Edition: 1 Reprint

Dambisa Moyo's "Dead Aid" reveals why millions are actually poorer because of aid, unable to escape corruption and reduced, in the West's eyes, to a childlike state of beggary. We all want to help. Over the past fifty years $1 trillion of development aid has flowed from Western governments to Africa, with rock stars and actors campaigning for more. But this has not helped Africa. It has ruined it. "Dead Aid" shows us another way. Using hard evidence to illustrate her case, Moyo shows how, with access to capital and with the right policies, even the poorest nations can turn themselves around. First we must destroy the myth that aid works - and make charity history. "Articulate, self-confident and angry ...this book marks a turning point". ("Spectator"). "A damning assessment of the failures of sixty years of western development". ("Financial Times"). "Kicks over the traditional piety that Western aid benefits the third world". ("Sunday Herald Books of the Year"). "Dambisa Moyo makes a compelling case for a new approach". (Kofi Annan). "This reader was left wanting a lot more Moyo, a lot less Bono". (Niall Ferguson). Dambisa Moyo worked at Goldman Sachs for eight years, having previously worked for the World Bank as a consultant. Moyo completed a PhD in Economics at Oxford University, and holds a Masters from Harvard University Kennedy School of Government. Her other books include "Winner Take All" and "How the West was Lost". She was born and raised in Lusaka, Zambia.

--This text refers to an out of print or unavailable edition of this title.

Editorial Reviews

From Publishers Weekly

In this important analysis of the past fifty years of international (largely American) aid to Africa, economist and former World Bank consultant Moyo, a native of Zambia, prescribes a tough dose of medicine: stopping the tide of money that, however well-intentioned, only promotes corruption in government and dependence in citizens. With a global perspective and on-the-ground details, Moyo reveals that aid is often diverted to the coffers of cruel despotisms, and occasionally conflicts outright with the interests of citizens-free mosquito nets, for instance, killing the market for the native who sells them. In its place, Moyo advocates a smarter, though admittedly more difficult, policy of investment that has already worked to grow the economies of poor countries like Argentina and Brazil. Moyo writes with a general audience in mind, and doesn't hesitate to slow down and explain the intricacies of, say, the bond market. This is a brief, accessible look at the goals and reasons behind anti-aid advocates, with a hopeful outlook and a respectful attitude for the well-being and good faith of all involved.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to an out of print or unavailable edition of this title.

From School Library Journal

Economist Moyo (former head, Economic Research and Strategy for Sub-Saharan Africa, Goldman Sachs) makes a startling assertion: charitable aid to African nations is not just ineffective—it is worse than no aid. Moyo, who was born and raised in Zambia, joins a small but growing number of observers (including microfinance expert Muhammad Yunnus) who argue that charity from Western nations cripples African governments by fostering dependency and corruption without requiring positive change. Deriding efforts to increase giving by foreign celebrities like U2 singer Bono as out of touch with the real needs of African countries, Moyo instead proposes solutions like new bond markets, microfinancing, and revised property laws. Moyo also singles out commercial investment from the Chinese (rather than general aid) and holds it up as an example for other nations to follow in the future. Whether one agrees or disagrees with Moyo's argument for such capitalist intervention in Africa, this straightforward and readable work should provide some food for thought.—April Younglove, Linfield Coll. Lib., Portland, OR
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to an out of print or unavailable edition of this title.

See all Editorial Reviews

Product Details

• Paperback: 188 pages
• Publisher: Douglas & Mcintyre Ltd; 1 Reprint edition (May 30, 2010)
• Language: English
• ISBN-10: 1553655427
• ISBN-13: 978-1553655428
• Product Dimensions: 5.5 x 8.3 inches
• Shipping Weight: 1 pounds
• Average Customer Review: 3.9 out of 5 stars  See all reviews (101 customer reviews)
• Amazon Best Sellers Rank: #419,977 in Books (See Top 100 in Books)

More About the Author

Dr. Dambisa Moyo is an international economist who writes on the macroeconomy and global affairs.

She is the author of the New York Times Bestsellers "Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa", "How The West Was Lost: Fifty Years of Economic Folly - And the Stark Choices Ahead" and "Winner Take All: China's Race for Resources and What It Means for the World".

Ms. Moyo was named by Time Magazine as one of the "100 Most Influential People in the World", and was named to the World Economic Forum's Young Global Leaders Forum. Her work regularly appears in economic and finance-related publications such as the Financial Times and the Wall Street Journal.

She completed a doctorate in Economics at Oxford University and holds a Masters degree from Harvard University. She completed an undergraduate degree in Chemistry and an MBA in Finance at the American University in Washington D.C..

Most Helpful Customer Reviews

75 of 84 people found the following review helpful

5.0 out of 5 stars Credible and Insightful! March 21, 2009

By Loyd E. Eskildson HALL OF FAME

Format:Hardcover

Over the past 60 years at least $1 trillion in aid was sent to Africa - yet, calls for even more grow steadily louder. Moyo - a native of Zambia, contends that evidence demonstrates that this aid has made the poor poorer. Real per-capita income today is lower than it was in the 1970s. In other words, aid is not part of the solution, it is part of the problem.

Even after aggressive debt-relief campaigns in the 1990s, African countries still pay close to $20 billion in debt repayments per year - at the expense of education and health care. Moyo also asserts that the roughly 500,000 individuals in the "aid business" have no motivation for that aid to succeed; meanwhile, well-meaning individuals such as Bono have choked off debate of its efficacy.

The author claims that the most obvious criticism of aid is that it enables rampant corruption and bloated bureaucracies. In 2002, the African Union, an organization of African nations, estimated that corruption was costing $150 billion/year. Transparency International, a corruption watchdog, states that Zaire's former president is reputed to have stolen at least $5 billion from the country. Across Africa, over 70% of government funding comes from foreign aid - enabling those governments to avoid accountability to local citizens since they pay so little.

In Cameroon, it takes a potential investor about 426 days to gain a business license, vs. 17 in South Korea. Under the auspices of the U.S. Food for Peace program, each year millions are used to buy American-grown food that is then shipped to Africa where it puts local farmers out of business.

Moyo's bottom-line is that other regions should stop the largess towards Africa, and Africa should focus on becoming more attractive to private investment. This includes ceasing to be the source of the world's greatest number of armed conflicts.

18 of 18 people found the following review helpful

4.0 out of 5 stars Rigor and conviction February 20, 2009

By H. Laurent

Format:Paperback

As I was not aware of the Aid programs bias and problems. I always complied with the current and unique trend: "Send more Monies to Africa. It will solve all of their problems". This book brought me a brand new look at the Aid system and to discover why it does not always work.

With Passion and Rigor Ms Moyo brings a lot of numbers and facts to the table. She also brings solutions and tools that may work in the future.

Sometimes, I was lost in numbers and redundant affirmations as some points are obvious from the beginning. I have to admit, I skipped some pages.

I learned a lot and this book allowed me to better understand the situation. Glad I read it

198 of 249 people found the following review helpful

3.0 out of 5 stars Dead Aid Not Quite Dead On April 2, 2009

By David Donelson

Format:Hardcover

Dead Aid is an interesting, provocative look at the foreign aid industry and its effects on Africa. Dambisa Moyo, who formerly worked for Goldman Sachs and the World Bank, draws a conclusion not unknown to others in the field: development aid (as differentiated from humanitarian aid) has not only done little good for the nations of Africa but has indeed caused great harm. While I don't necessarily disagree with her conclusion, I didn't find her arguments particularly convincing.

There is no question that much of the aid intended to build economies in Africa has been grossly wasted, stolen, and misused. There is little to show for the trillions of dollars that have been poured into the continent--a failure with numerous causes. But Moyo's main premise is that aid itself is the cause, that it creates a culture dependent on foreign handouts and rife with corruption that, according to the author, apparently wouldn't exist if aid weren't available. I find both arguments hard to swallow, especially since they are based mostly on the logical premise of cum hoc ergo propter hoc (with this, therefore because of this). In this thinking, when aid is given, the recipients don't develop other resources, therefore aid causes them to not try. It's the same argument that's been used for years to oppose welfare programs applied in this instance not to individuals, but to entire nations. I find that a little facile. I suspect aid fails more often because it is poorly structured and managed, an argument that Moyo essentially dismisses out of hand.

Whether you agree with Moyo's reasoning or not, you have to seriously question the solutions she proposes. While outlining a litany of worthwhile approaches to economic development including micro-lending, opening markets in the developed world to African products, and more foreign direct investment (FDI), her silver bullet is a solution only an investment banker could love: the bond market. Somehow, Moyo expects the magic of the free market financial system to end corruption in Africa, stop wasteful spending, and power the continent out of poverty. I react to that proposal the same way Jaime Talon, one of the lead characters in my novel, Heart of Diamonds: A Novel of Scandal, Love and Death in the Congo, did when confronted by a similar argument about a panhandler in New York: "What matters is that right now--today--that man over there is hungry. Somebody needs to do something about that, not just ignore it and hope the holy and all-powerful market economy will provide a solution."

I have to ask, given the brilliant performance of Wall Street and Fleet Street in providing structured finance for America and Europe, how can we expect them to solve the problems of Africa? These are the people who brought us sub-sub-prime mortgages wrapped in gilt-edged bond ratings and called gold. Their ability to assess risk and police wasteful government spending in Kinshasa is rather suspect, at least to me. I also fail to see how corrupt leaders and their minions will be any less likely to steal funds from private lenders than they are from the World Bank. Perhaps my most significant objection, though is when Moyo says the developing nations will be better served paying ten percent interest (the rate she quotes for emerging market debt in 2007) than the 0.75% they are charged by the World Bank. How does that work to anyone's advantage other than the investment bankers?

Don't misunderstand my review. I agree with many of Moyos' conclusions and her objections to the current approach to foreign aid. Mandating the purchase of American products with American aid dollars, for example, is enormously wasteful, self-serving, and undoubtedly harms the African farmers and manufacturers such aid could help. She's also dead on when she calls for an improved business climate in Africa so that direct investment, both foreign and local, stands a better chance to succeed.

Pulling Africa out of the swamp of poverty is a complex operation. I applaud Dambisa Moyo for presenting a provocative set of arguments in clear, understandable layman's prose. Dead Aid brings an important subject into the public eye.