by Alex Evans | Feb 13, 2009 | Africa, Economics and development
Former Goldman Sachs economist Dambisa Moyo has just published a new book entitled Dead Aid: Why Aid is Not Working and How There is Another Way for Africa. There’s an outline of the argument in this op-ed in The Independent from 2 February, e.g.
I have long believed that far from being a catalyst, foreign aid has been the biggest single inhibitor of Africa’s growth. Among its shortcomings, aid is correlated with corruption, fosters dependency, and invariably instils bureaucracy that hinders the emergence of an essential entrepreneurial class. For Africa to grow in a sustained way, foreign aid will have to be dramatically reduced over time, forcing countries to adopt more transparent strategies to finance development. What the credit crunch has effectively done is to instigate this process by default …
The development finance policy that has been the hallmark of consistent growth across the world has almost universally comprised a mix of four essential elements: Trade and commerce, Foreign Direct Investment (FDI), microfinance, and access to international capital markets.
As such, despite negative headlines over China’s expanding role in Africa’s burgeoning economy, African governments should be minded to accelerate alliances with China and the rest of the rapidly emerging world. Rather than continue to spend millions of dollars each year attempting to gain greater access to Western trade markets, they should focus their attention on markets such as China, where, with 1.3bn people to feed and just seven per cent arable land, African produce is welcome.
And with roughly $4 trillion of foreign reserves, China is undoubtedly a better bet for much needed FDI in the foreseeable future than its Western competitors. Furthermore, the reserves profile of not just China but also the Middle East suggests a class of new investors with likely appetite to take on African risk via the bond markets.
As Moyo observes, the credit crunch is likely to have the effect of accelerating this debate, especially as publics in developed countries show lower enthusiasm for spending overseas as the full extent of spending cuts at home becomes evident in a couple of years’ time.
All this presents a major strategic challenge for the development community – where the orthodox narrative has arguably ossified in recent years, especially as no-one (donors, NGOs, developing country governments) has had much of an incentive to ask the really hard questions about aid.
The question now: will they all dig in for a defensive game, or is a serious process of strategic renewal finally in prospect?
by Daniel Korski | Feb 13, 2009 | Conflict and security, Cooperation and coherence
Diaspora and exile groups may play an important, but sometimes also controversial, role in conflicts and political unrest in their countries of origin. Often their engagement is benign and comes in the form of remittances. But many diaspora communities also lobby decision-makers and parliamentarians in the new country of residence or collect money among co-nationals in order to support ‘the struggle’ at home.
Think of the Irish in the US, sending money to the IRA for decades. Or the ethnic conflict in Sri Lanka and the influence of the Sri Lankan Tamil Diaspora. Or even the role of the Pakistani community in Europe.
This is by no means a new phenomenon. Yet, the growing number of intra-state conflicts, the enhanced possibilities for transnational communication, mobilization and action as well as the upsurge in domestic and international security concerns after 9/11, have focused attention on diasporas. Or at least should have.
For despite their role, most peace-building interventions — whether UN, NATO or EU led – spend little time engaging with diaspora communities. There is more and more writing, but it is hard to see governments taking this issue seriously, except as a domestic political issue (i.e MPs placating diaspora constituents by tabling EDMs).
In a time of dwindling resources, and assuming that unilateral or coalition interventions are less likely in the future, it may become important to engage these diaspora communities in a systematic way.
How can the British government engage the Pakistani community to ensure support for democratic forces in Pakistan? Should the Foreign Office consider, as a rule, having a Diaspora Desk Officer in its Afghan Group, or Iraq Unit? Should funds be set aside by DfiD for funding diaspora-led programmes?
Such programme may not be the most effective in, say, building schools but they may have an important function in challenging the role of organizations like Jamaat-ud-Dawa, the political and civic wing of the outlawed terrorist group Laskhar-e-Taiba, which is benefitting from the Pakistani government’s inaction in many of the IDP camps in Pakistan’s North-West Frontier Province (NWFP).
With decreasing resources, but constant if not increasing security demands, finding new ways of addressing conflict (prevention, management and resolution) will be key. Re-thinking how to engage with diasporas may be part of this.
by Alex Evans | Feb 13, 2009 | Economics and development
Tom Friedman has a radical new approach in mind to saving the US economy:
Leave it to a brainy Indian to come up with the cheapest and surest way to stimulate our economy: immigration.
“All you need to do is grant visas to two million Indians, Chinese and Koreans,” said Shekhar Gupta, editor of The Indian Express newspaper. “We will buy up all the subprime homes. We will work 18 hours a day to pay for them. We will immediately improve your savings rate — no Indian bank today has more than 2 percent nonperforming loans because not paying your mortgage is considered shameful here. And we will start new companies to create our own jobs and jobs for more Americans.”
Via Chris Blattman.
by Richard Gowan | Feb 12, 2009 | Conflict and security, Economics and development, North America
Major league economic crisis trumps minor league terrorists:
Sounding more like an economist than the war-fighting Navy commander he once was, National Intelligence Director Dennis Blair told a Senate panel Thursday that if the crisis lasts more than two years, it could cause some nations’ governments to collapse.
And a number of allies the United States depends on might no longer be able to afford to meet their own defense and humanitarian obligations, he said.
Blair said already the financial meltdown, which started in the United States and quickly infected other countries, has eroded confidence in American economic leadership and belief in free markets.
“Time is probably our greatest threat. The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests,” he told the Senate Intelligence Committee, as Congress prepares to vote Friday on a $789 billion stimulus package.
Blair’s 49-page statement opened with a detailed description of the economic crisis. It was a marked departure from threat briefings of years past, which focused first on traditional threats and battlefields like Afghanistan, Iraq and Pakistan.
“The primary near-term security concern of the United States is the global economic crisis and its geopolitical implications,” he said in a written statement for the committee.
One reason for the new ranking is progress made in the last year against al-Qaida. A year ago, al-Qaida was said to have reconstituted its operations in the lawless tribal area between Pakistan and Afghanistan. But that has changed.
“Because of the pressure we and our allies have put on al-Qaida’s core leadership in Pakistan and the continued decline of al-Qaida’s most prominent regional affiliate in Iraq, al-Qaida today is less capable and effective than it was a year ago,” he said.
Four top al-Qaida operatives were killed over the last year — partially a result of newly aggressive rules of engagement for U.S. forces on the Pakistan border. The organization has had to promote junior players figured “considerably less skilled and respected” to fill those slots, he said.
by Richard Gowan | Feb 12, 2009 | Middle East and North Africa, Off topic
Somewhat incredibly, this is the lead story on cnn.com this Thursday afternoon:
The shotgun blast rips into the stray dog’s midsection, sending it tumbling over and over. Agonizing yelps echo through the streets as it tries to reach and bite at the gaping wound. Minutes later, the dog is dead.
A few miles away, a puppy eats a piece of poisoned meat. Its body starts to twitch and spasm as the toxins kick in. It dies within 15 minutes.
The two strays were among the thousands that roam the streets of Baghdad. Authorities have been killing them since November, trying to prevent the spread of disease and attacks on residents.
The Baghdad dog-culling program comprises two vets, a council official and a police officer armed with a shotgun. The vets distribute bits of meat poisoned with strychnine. If the poison doesn’t kill the dogs, the police officer steps in with the shotgun.
“I do have mercy for all animals,” veterinarian Khalil Abdullah said. “But we can’t vaccinate the wild animals in the street, and we don’t have the means or ability to bring them all to the hospital.”
Does this really count as the most important story in the world right now? And if it does, how is it improved by the pulp novel prose? And if it somehow does benefit from this sort of trash, is this the best you can do?
The mongrel was blown apart like a Republican Guard tank hit by a Tomahawk missile fired from a U.S. submarine thousands of miles away. Khalil looked around for one last hit. Some little punk of a beagle-terrier cross cowered on the sidewalk. Khalil raised his piece. “It’s time to go walkies, big boy”, he snarled.
OK, I made that up. But it’s about the same quality of journalism, or maybe a bit better. Shame on you CNN. Even if you have a cute puppy photo:
