I thought this would be interresting considering how heated the other thread became regarding debt relief for Africa. This is an interview with Andrew Mwenda, a Ugandan radio journalist and this thoughts on Aid to Africa and trade deficits. It's an eye opener, please read the entire story.
http://news.bbc.co.uk/2/hi/africa/4657139.stm
After months of work they came up with the same old mantras: doubling aid, cancelling debt and reducing trade tariffs and subsidies.
They're ignoring reality. For the last 40 years, Africa's been getting more, not less, aid - we've received more than $500bn. But we are getting poorer not richer.
Let me show you, through the experience of my homeland Uganda how these recommendations don't - and won't - work
And she also said that Uganda should aim to reduce donor support.
But Tony Blair is talking of doubling aid to Africa. Yet some African economies are so small that the amount of aid they're getting is already skewing the economy.
Foreign aid enriches politicians, bureaucrats and aid workers, whose consumption fuels inflation.
The Ugandan government is receiving so much foreign aid that the economy is unable to absorb it. Treasury bills have to be used to suck the money out of the system. As a result, the Central Bank is holding $700m in treasury bills, and the interest on that per annum is $120m - which is incurred by the tax payer.
Foreign aid does not help the poor out of their misery - it exacerbates their problems and prolongs their agony.
Taxpayers in the west should not be asked to pay to keep corrupt and incompetent governments in power
http://news.bbc.co.uk/2/hi/africa/4657139.stm
After months of work they came up with the same old mantras: doubling aid, cancelling debt and reducing trade tariffs and subsidies.
They're ignoring reality. For the last 40 years, Africa's been getting more, not less, aid - we've received more than $500bn. But we are getting poorer not richer.
Let me show you, through the experience of my homeland Uganda how these recommendations don't - and won't - work
And she also said that Uganda should aim to reduce donor support.
But Tony Blair is talking of doubling aid to Africa. Yet some African economies are so small that the amount of aid they're getting is already skewing the economy.
Foreign aid enriches politicians, bureaucrats and aid workers, whose consumption fuels inflation.
The Ugandan government is receiving so much foreign aid that the economy is unable to absorb it. Treasury bills have to be used to suck the money out of the system. As a result, the Central Bank is holding $700m in treasury bills, and the interest on that per annum is $120m - which is incurred by the tax payer.
Foreign aid does not help the poor out of their misery - it exacerbates their problems and prolongs their agony.
Taxpayers in the west should not be asked to pay to keep corrupt and incompetent governments in power