AID DEPENDENCY KILLING AFRICA

 Contrary to the perception that foreign aid is key to eradicating poverty in Africa, is the fact that economic freedom can only be realised through the creation of open and effective economic institutions in African countries.

Foreign aid is not a requirement for development and, as witnessed in most Third World countries, it has led to overdependence on foreign aid. It does so by creating the impression that western countries are rich, which in essence are not, as seen how COVID-19 has exposed them, and thus expected to offer assistance to poor countries.

Poor countries embrace foreign aid and fail to create other development incentives, which worsen the state of poverty. Another factor, which arises from foreign aid, is oppression. As argued by Bauer, contend that as recipient governments’ powers and authority are heightened by foreign aid, conflicts are bound to ensue due to the politicisation of life. That is, governments utilise foreign aid to fuel political agendas and develop policies that aggravate poverty and hinder growth.

African countries also continue to accrue immense debt from foreign aid and this has only contributed to destabilising the countries’ economies. This burden also attracts economic crises, social and political problems in those countries. When Third World countries are in debt, they often expend their revenues on servicing these debts and, in turn, they are left without capital for economic growth.

Furthermore, there is always the likelihood that donor countries will cease supporting development projects when these countries fail to service their loans. This action instigates a string of negative effects such as laying off workers, introducing restrictions and hefty taxes, among others, all in a bid to pay up the debt.

Donors

Furthermore, debt has also brought about the manipulation of Third World countries by donors. In addition to imposing conditions, donors often come in, take over government policies, and even control how financial and other levels of administration are run, the case of structural adjustment policies by international monitory institutions. Consequently, Third World countries are left feeling threatened and even more insecure about their economic capacities.

There is no doubt that foreign aid has at times been of significant help to Third World countries. Western countries have helped alleviate short-term crises such as food shortages and even invested in projects that have benefited the poor. Nonetheless, it is eminent that Third World countries are worse off with the presence of foreign aid. Ideally, they do not have to rely on foreign aid in order to eradicate poverty. Even so, it is important to note that western countries are also faced with the same challenging economic and social issues.

Afflicted

Despite this, donors have always factored in Third World countries in their annual budgets and significantly awarded them large donations at the expense of those afflicted by poverty and other issues in their own countries.
In fact, African countries would be propelled to devise lasting solutions to their domestic problems. Instead of being dependent on foreign aid and accruing immense debts, Third World countries can utilise their revenues in funding their own development projects and not paying up foreign debts.

There is enough evidence that Africa has what it takes to economically empower itself. With the outbreak of COVID-19, we have already seen numerous technological innovations by African citizens, Madagascar coming up with COVID -19 medication, although it is under debate if it can be approved by the World Health Organisation, but still this is a positive innovation coming from Africa.

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