(March 3, 2010) Criticism of the high salaries being offered to contractors working with AusAID, Austrialia’s national aid agency, is the latest example of the increased scrutiny facing aid agencies around the world. The criticism comes after a recent audit showed that a number of aid workers are earning more money than the country’s Prime Minister. And they’re doing so tax-free.
Marshall Plan to Haiti? Not so fast.
(March 2, 2010) As calls for a “Marshall Plan for Haiti” continue to make headlines, an increasing number of reports are beginning to ask: is aid the answer? A recent report from PBS interviews a number of aid supporters and critics, asking them if a massive aid program to Haiti is the best option.
Chinese investment good for Africans? Depends on who you ask.
(March 1, 2010) Soaring Chinese investment in Africa has placed the international aid community on high alert. While policymakers around the world debate whether China’s no-strings-attached approach to African investment is good for the continent’s economic development, many onlookers have failed to ask: how do Africans feel about it? A recent poll, "How do Africans see China after all?" by academic Loro Horta, suggests opinion is strongly divided.
Ecuador’s Sovereign Default: A Pyrrhic Victory for Odious Debt?
(February 28, 2010) Ecuador’s strategic default on some of its external debt last year has drawn much commentary and generated passionate reactions. Some commentators who advocate creating a mechanism for addressing odious or illegitimate debt encouraged Ecuador to repudiate its obligations and have generally applauded its decision to do so. For those who are sympathetic to efforts to create such a mechanism, however, this enthusiasm may be misplaced.
Help Haiti build a real government
(February 22, 2010) Aid makes governments unaccountable to their own people – with devastating results.
The joy of doing business In Africa: How corrupt Senegalese politicians tried to shake down Millicom for $200 million
(February 5, 2010) Corruption in Senegal is more than a risk to private investors like Millicom, it’s a risk to taxpayers, too. More than half a billion dollars in U.S. development assistance is going to Senegal over the next five years on the assumption of good governance.
African graft fight blocked by continent’s Capones
(February 5, 2010) Africa’s fight against corruption is being blocked by gangsters at every level of administrations and the campaign is doomed to fail unless presidents themselves spearhead the battle, a top campaigner said.
Afghanistan and dead aid: is it becoming a reality?
(February 2, 2010) In a recent piece for Foreign Policy, Gerard Russell, a former British and U.N. diplomat and now a Fellow of Harvard’s Carr Centre for Human Rights Policy, looks at the disturbing effect foreign aid is having on Afghanistan. With over half of the country’s licit economy supplied by foreigners, Russell says—referencing Dambisa Moyo’s book "Dead Aid all too often "foreign aid undermines society, encourages rentier behaviour, siphons off talent, reduces pressure for reform, and undermines democracy. Does this sound familiar, Afghanistan-watchers?
To help Haiti, end foreign aid
(January 19, 2010) For Haiti, just about every conceivable aid scheme beyond immediate humanitarian relief will lead to more poverty, more corruption and less institutional capacity, says Bret Stephens, writing in the Wall Street Journal. After the immediate impact of the earthquake has passed, and the immediate relief efforts subside, “the arrival of the soldiers of do-goodness, each with his brilliant plan to save Haitians from themselves” will take root.
Africa: It’s tough love weaning Africa off aid
(January 16, 2010) Aid is an unmitigated, political and humanitarian disaster, declares Zambian economist Dambisa Moyo, in her book, "Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa." Hers is such a "tough love" prescription that the author has had to dodge a punch in Toronto, Canada, and has had tomatoes thrown at her elsewhere.
Kenyan author demands forensic audits of country’s debts, speaks out about country’s odious debts
(January 6, 2010) Kenyan taxpayers should not have to repay the odious debts incurred by post-independence governments that borrowed money in their name but used the funds to terrorize citizens or were involved with corruption-tainted deals such as Anglo Leasing, writes prominent author Okiya Omtatah Okoiti in a recent op-ed. Using limited funds collected through taxation to repay odious debts incurred by the colonial, Kenyatta, Moi and Kibaki administrations, he writes, must come to an end.
Cancellation of odious debts an issue in upcoming Philippine presidential race
(January 5, 2010) Research organization Ibon Foundation is urging candidates in the upcoming presidential election to make public their stand on the repeal of automatic debt servicing; cancellation of odious debt; increased allocation and spending for health, education, and housing; and reversing trade liberalization, improving collection efficiency, and addressing bureaucratic corruption and wastage to raise badly needed revenues instead of imposing new taxes such as the tax on text messaging.
Banned Aid: Why international assistance does not alleviate poverty
(January 1, 2010) As the Zambian economist Dambisa Moyo argues, the concept of foreign aid is flawed — not just because corrupt dictators divert aid for nefarious or selfish purposes but also because even in reasonably democratic countries, aid creates perverse incentives and unintended consequences.
Thinking outside the foreign aid box
(December 18, 2009) Foreign aid is facing more criticism this time from an official at the United Nations Millennium Campaign. According to a recent report in the Guardian UK, Sylvia Mwichuli, the UN millennium campaign communications coordinator, told an audience attending a media workshop that governments in Africa must look for different ways to finance their national budgets, rather than relying on foreign aid.
Aid’s corrupting influence in Afghanistan should be considered
(November 20, 2009) A recent article from Canwest details the sharpening criticism facing Afghanistan President Hamid Karzai from foreign leaders, including U.S. President Barack Obama, British Prime Minister Gordon Brown and Prime Minister Stephen Harper, concerning the country rampant corruption. But the article does little to confront the ugly reality that the massive amount of foreign aid entering Afghanistan may be playing a crucial role in supporting rampant corruption.


