Friday, July 08, 2005

Aid to Africa must address misgovernment

Via Instapundit, a Max Boot column on aid to Africa:
The solution being promoted by Live 8 is simple: Send beaucoup bucks. The anti-poverty campaigners are grouchy because the wealthy world spends only 0.25% of its gross national income on aid — a mere $76.8 billion last year. They want to nearly triple that, to 0.7% of GNI.

The United States, in particular, is castigated for its stingy development budget — only 0.16% of GNI. This obscures the fact that, in absolute terms, the U.S. government spends far more on foreign aid ($19 billion last year) than any other nation. And that's only a small part of our total contribution. Thanks in part to our lower tax rates, Americans give far more to charity than do Europeans. If you include private-sector donations, the Hudson Institute finds, U.S. foreign aid totals $81 billion, or 0.68% of GNI — close to the U.N. Millennium Development Goals. And that's not counting the billions the U.S. spends to subsidize global security or the billions more it sends abroad as investment capital....

In the last 50 years, $2.3 trillion has been spent to help poor countries. Yet Africans' income and life expectancy have gone down, not up, during that period, while South Korea, Singapore and other Asian nations that received little if any assistance have moved from African-level poverty to European-level prosperity thanks to their superior economic policies.

Economists who have studied aid projects have found numerous reasons for the failures. In many instances, money was siphoned off by corrupt officials. Even when funds did reach the intended beneficiaries, the money often distorted local markets for goods and labor, creating inflation that drove local businesses out of business....

Africans continue to be tormented not by the G-8, as anti-poverty campaigners imply, but by their own politicos, including Sudanese President Omar Hassan Ahmed Bashir, who is abetting genocide in Darfur, and Zimbabwean President Robert Mugabe, who is turning his once-prosperous country into a famine-plagued basket case. Unless it's linked to specific "good governance" benchmarks (as with the new U.S. Millennium Challenge Account), more aid risks subsidizing dysfunctional regimes.

Any real solution to Africa's problems must focus on the root causes of poverty — mainly misgovernment. Instead of pouring billions more down the same old rat holes, maybe the Live 8 crew should promote a more innovative approach: Use the G-8's jillions 2 hire mercenaries 4 the overthrow of the 6 most thuggish regimes in Africa. That would do more to help ordinary Africans than any number of musical extravaganzas.