Aid can be beneficial, but it is important to distinguish between economic and humanitarian aid. As a western society, we struggle to acknowledge the flaws foreign aid can have, as it is an act of humanitarianism. Unsurprisingly, her book provoked many discussions and debates, including from the likes of Bill Gates who strongly disagreed with her views. She argued for reducing the reliability of these countries on aid leading to sustainable economic growth. In recipient countries, aid can be used to fund the transfer of inappropriate technology, worsening income inequality, and sustaining corrupt governments. Instead, she believes it has benefitted corrupt administrators instead of being invested in job-creating activities. Dambisa focused on concessional loans 1 and grants given to countries, arguing foreign aid has stifled Africa’s development.

Furthermore, poverty levels have continued to rise, in contrast to global poverty levels, suggesting that foreign aid may not be the solution. Nevertheless, the West benefited more from foreign aid with $218 billion extracted from the continent (for example, profits from sugar, coffee, cotton, and tobacco), suggesting the continent has incurred a loss.

It was found in a report conducted by the IMF that Africa received about $133.7bn in total in aid. There are also many costs for economies such as increased dependency, the risk of corruption and worsening income disparity. There are many benefits of foreign aid such as fostering economic development, providing humanitarian aid and reducing suffering. Broadly speaking, there are three types of aid, according to Moyo: humanitarian or emergency aid, charity-based aid and aid payments made directly to governments (bilateral or multilateral aid). She advised developing countries on issuing bonds on the global market, whilst working at Goldman Sachs and writing her most notable work, Dead Aid: Why Aid is Not Working and How There Is a Better Way for Africa, in 2009.įoreign aid is the international transfer of capital, goods, or services from a country or international organization, for the benefit of the recipient country or its population. Her books, lectures, and articles are centred on the creation of wealth and dynamic interrelationships between emerging economies and developing economies. She previously worked at the World Bank for 2 years and at Goldman Sachs for 8 years. She is a Zambian author and economist, whose views have influenced key decision-makers in public policy and strategic investment. The macroeconomy and global affairs are areas in which Dr Dambisa Moyo has focused her work and provoked many discussions.

Dambisa moyo foreign aid