Bono, Foreign Aid and Skeptics
New York Times
August 9, 2007
Op-Ed Columnist
By NICHOLAS D. KRISTOF
Almost nobody has campaigned so energetically for the poor in Africa as Bono, but when Bono spoke at a conference in Africa recently, he was heckled. Several Africans scolded him for demanding more foreign aid, saying that's not what Africa needs.
A handful of recent books and studies suggest that aid is sometimes oversold, including the superb new work called "The Bottom Billion," by Paul Collier, the World Bank's former research economist (it's the best nonfiction book so far this year). A forthcoming book, "Farewell to Alms," by Gregory Clark, a University of California economist, even argues that conventional aid can leave African countries worse off
than ever.
And a study by two economists formerly of the I.M.F., Raghuram Rajan and Arvind Subramanian, forthcoming in The Review of Economics and Statistics, concludes:
"We find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings suggest that for aid to be effective
in the future, the aid apparatus will have to be rethought."
So does this mean we should give up on foreign aid?
No, not at all. On the contrary, I believe there is an urgent need for more aid. But this is an important discussion worth having, and the critics (though a minority of the experts) make some fair points. Plus, there's no doubt that aid can be made more effective.
this op-ed piece is available as "times select" content. i.e. - it costs money. click here for the full ($) text.
i snipped out the middle, but this is the way it ends ...Look, it's true that aid doesn't always work — any more than other projects do. We spend billions on our military, yet it doesn't always succeed. But the lesson should be to deploy military power more wisely, not to give up on it.
So how do we make aid smarter? Health and education spending has a pretty good record. Some interventions, like school feedings run by the World Food Program, address both areas: For just 10 cents a day, a child gets a lunch that reduces malnutrition and improves attendance.
And we should commit more aid to nurturing manufacturing and business development, so that countries can grow on their own.
One great U.S. program, the African Growth and Opportunity Act, or A.G.O.A., does that and should be expanded. Another excellent U.S. aid program, the Millennium Challenge Account, nudges countries toward better governance — yet a stingy and myopic Congress is balking at funding it.
So let's accept that getting foreign aid right is harder than it looks—but also remember that 4,110 people didn't die today from smallpox. Aid can be cause for celebration, not embarrassment.
click here to see a photo of bono at the ted africa conference he got "heckled" at back in june. or actually, some say he was the heckler. he looks all torn up about it, eh?