Is Economics Aid Good Or Bad For Africa ?

               Introduction

•      The PPT shall cover the following points:

•      The Need of Economic Aid in Africa

•      The Role of such Aids

•      The Positives of Grants from major developed economies

•      The negatives of the same

•      An analysis and discussion on the pivotal point of – whether Aids are Good or Bad

Africa’s Economic Crisis and the Problems it faces

•      The incomes of households on a general basis is low. Many countries of Africa are Malnutrition-ed to the extent of depending on food and grants from others (Whiteside, 2010)

•      The Poor Production is another reason that makes them poorer and leads to further unemployment

•      Continuous stagnation has caused the morale and attitudes of the people go down and thus killed the fighting spirits in them.

•      HIV Aids is rampant in Eastern and Southern Africa depleting the manpower and draining the Plummeted resources.

•      With 130 million people leading a poor life in rural areas with maximum countries having an average annual per capita income numbered to less than US$400, this country is in need of funds to uplift its level of living (the OECD, 2016)

•      Rural poverty  leads to limited availability cultivable land and the unfortunate effect of droughts and floods,  poor transport, horrendous infrastructure, widespread illiteracy, weak government, poor association of economy, and the lack of manpower or youth, leaves the major dependence on Aids as a way of life (Easterly, 2003).

What factors make Africa a vulnerable Continent,  in need  of Aids to sustain life.

•      Africa depends on prosperous nations for support. Whether or not these aids are really required depends on factors like the economy, the associated social structures, which further shapes the attitudes and general way of living. Here are a few reasons Africa needs Aids.

 The Benefits of Aids

•      Aids makes Education possible for and lifts the workforce standards of Africa.

•      It makes land and resources available for rural farming and production processes.

•      Aids can lead to decreased stigma, and boost morale and skills of local community members and increased levels of motivation.

•      Africa has gained infrastructural set ups of the day like roads, medical centers and institutions, hospitals, financial institutions, banks, and flourishing industries which render output that further goes into developing yet other aspects of the economy (Brautigam, n.d.).

•      It can make the Government more answerable and thus responsible.

•      It can help fight medical illnesses and tough floods and famines. HIV is a crippling condition among Africans and Grants and Aids from other countries can give life saving benefits to such ill people (Brautigam, n.d.).

•      It can add to domestic incomes, the standard of living, and mental peace of households, and thus let people be more involved and productive in turn.

Types of Foreign Economic Aids

•      Private forms of foreign direct investment which is undertaken by MNCs/ TNCs- FDI

•      Public and private development assistance which Donor Countries undertake

•      Project or specific Programme Aids which NGOs undertake

•      Commodity Aid  that is in the form of Capital Goods like food, raw materials, etc.

•      Foreign aid may flow-in in the form of goods, capital, technical and infrastructure assistance, etc., or even military support. 

More Strategic Intentions and Purposes of Aids from Powerful Nations

•      Major Powers which grant Aids to Africa are China and the US. THE main form of Grants and Aids they provide is called ODA (Official Developmental Assistance) (Moyo,  2009)

•      The purpose behind the grants, in addition to the moral mission, is analyzed as Influencing People And Befriending them  For Political Power

•      Public Diplomacy and Community Politics (Egendorf, 2005)

•      National Security and Power over the Aided Country

•      Innumerous African Orphans could add to instability on pivotal continents like the US. Thus these Powerful forces act to tame the manpower and keep energies channelized.

The Negative Effects of Economic Aids in Africa

•      Sometimes these Aids are used negatively. The negative effects in the radical times, seem to outnumber the positives.

•      The rate of corruption has gone up in African nations (Forbes.com, 2016).

•      The leaders are not ideally perfect and do end up enjoying themselves and buying luxury for their families.

•      The donor country does even dictate the recipient country as to how to use the funds; the purpose of which could be specific. In such a case Africa will continue to struggle to develop its identity and might.

•      Dependence on aids form influencers like China and the US  can  have a passive effect on the total infrastructure, and mainly on the attitudes of the inhabitants of the continent if the funds are not directed at educating and empowering them which is currently the case in Africa (Bjornskov, 2013). 

The Negative Effects of Aids in Africa (Cont..d…)

•      Leaders do not appropriately fructify the grants due to their selfish ambitions. Corruption increases, misappropriation of funds occurs.

•      The International Monetary fund is mishandled to lead to many woes.

•      In Ghana for instance, the poor remain poor and the rich become richer. Giving good money to a unworthy government and unhoned people make the situation worse (Miller, 2009).

•      Last of all, aids tend to pacify the nationals and in all ways manipulate the donor nation to follow their will.

•      For example, Ghana and Uganda had to turn down the aids at an instance when they refused to accept homosexuality as legal in their respective countries (Haugen, 2008).

Certain Views on The Role of Aids in an Economy

•      As per records prepared by the World Bank in 1998, all Assessing Aid is somewhat beneficial and raises the aided economies (Globalissues.org, 2016).

•       An M'hite Paper which the British Department propagated on the topic of International Development argued in 2000, in a paper similar to the Burnside and Dollar paper, by saying, “any grant assistance can alleviate poverty in countries in case the government is sound and working on firm policies (Miller, 2009).“

•      The Canadian International Development Agency in September 2002 laid down that “there is good evidence to establish that a sound policy environment determines aid effectiveness to the maximum extents (Haugen, 2008)."

•      In this same spirit, the president of the World Bank, James Wolfensohn, gave a speech shortly before the

Certain Views on The Role of Aids in an Economy (Cont…d….)

      Monterrey Conference wherein there were facts cited as per the aid community.

•      Wolfensohn, World Bank (2002) : “As per observations, corruption and ill policies, selfish and inefficient governance does affect aid negatively. (Moyo, 2009) "

•      As the Monterrey conference ensued, President George W. talked on similar lines, and stated on March 14, 2002 : The US would contribute a $5 billion plus to foreign aids. This is an increase of 50 percent.

How African Government is cutting down the efficiency of the Aids Received…

•      Lack of Accountability of the African Government is an issue. There are many NGOs working there and are funded by foreign Aid but the target they focus on is very limited.

•      Educated youth are busy dancing on the streets to Hip Hop. There is real need of educating them. The Government needs to focus on Infrastructure, studies, health and security (Egendorf, 2005).

•      Government is not far-sighted but concentrates on Aids for natural calamities and poverty relief. 

•      Leaders are corrupt within the African Government; so laid back that a celebrity becoming a leader is quite possibility (Egendorf, 2005).

•      No productive uses, like Investment and saving leaves the continent needy forever.

•      Inflation absorbs a lot of financial inflow. (DAMBISA MOYO, A Zambian Economist)

 Incidence of how Foreign Aid is Hurting Africa

•      Kiberia is the largest Slum in Africa

•      It has been receiving grants in huge figures yet data records that the growth and development has been negative (Moyo, 2009)

•      Kibera is located at the headquarters of the United Nations' agency which rolls out millions of Dollars for aiding human settlements. Yet here houses have Aluminium and cardboard roofs.

•      Alms to Africa is a welcome concept, but this case of Kiberia raises doubt and the problem stays undiagnosed. Government has no answer as to why so (Moyo, 2009)

•      Aids are failing to develop women’s life in slum areas; in fact the gender inequality is rising.

•      Kiberia is a clear indication of the situation of Corruption and unaccountability of the African Government.

Incidence of how Foreign Aid is Hurting Africa

•      Kiberia is the largest Slum in Africa

•      It has been receiving grants in huge figures yet data records that the growth and development has been negative (Moyo, 2009)

•      Kibera is located at the headquarters of the United Nations' agency which rolls out millions of Dollars for aiding human settlements. Yet here houses have Aluminium and cardboard roofs.

•      Alms to Africa is a welcome concept, but this case of Kiberia raises doubt and the problem stays undiagnosed. Government has no answer as to why so (Moyo, 2009)

•      Aids are failing to develop women’s life in slum areas; in fact the gender inequality is rising.

•      Kiberia is a clear indication of the situation of Corruption and unaccountability of the African Government.

Conclusion

•      Aids are a basic help for the people of Africa struck hugely by Poverty, Health Issues and a Passive Lifestyle

•      The Aids that are received are probably not directed to the problem areas

•      The Economic Grants are Misappropriated by the Government

•      The Aids, more than strengthening the country as a stable Nation  in Future is crippling and making it dependent (Bjornskov, 2013)

•      The Grants are also giving rise to corruption, Despondency, Manipulation and Lack of education and caliber

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