Foreign aid & solutions to corruption

In “Our Turn to Eat,” Michaela Wrong writes about Kenya:

Kenya’s foreign partners failed to grasp that a system of rule based on the ‘Our Turn to Eat’ principle was explicitly designed to prevent the trickle-down upon which they counted for progress. The better Kenya’s economy fared, the more unstable the country actually became, because public awareness of inequality – sociologists call the phenomenon ‘invidious comparison’ – deepened a notch.

It was a poor bet for the donors to make, for nothing sabotages development programmes more dramatically than violence. Decades of work on school-building, AIDS prevention and gender-awareness-raising are wiped out in a moment when the first shamba goes up in flames and its terrified family hits the road. Convinced they grasped the big picture, the donors somehow managed to miss the approaching near-collapse of an African state.

And:

As for the Western tendency to turn a blind eye to blatant graft and routine human rights abuse in the eagerness to save ‘the poorest of the poor’, it is a feature of donor relations across the continent.

And finally:

If they only set foot on the continent, idealistic Westerners would be astonished to hear how often, and how fiercely, politically engaged Africans…call for aid to be cut, conditionalities sharpened. Kenyan journalist Kwanchetsi Makokha is not alone in detecting an incipient racism, rather than altruism, in our lack of discrimination. ‘Fundamentally the West doesn’t care enough about Africa to pay too much attention to how its money is spent. It wants to be seen to do the right thing, and that’s as far as the interest goes.’

While I haven’t had the chance to read the whole book yet, I’ve read a few chapters through one of my classes. I find her quotes fascinating – that donors and aid agencies are so focused on helping the poor that sometimes they forget to think about the broader context in which their work is operating. It seems to me that donors are generally less willing to support more “abstract” projects such as human rights monitoring or anti-corruption initiatives, because they want “direct” results and want their money to directly go to the poor through education, healthcare, microfinance loans, etc. But being aware of this broader context is, as Wrong indicates, absolutely vital if genuine change is going to occur. The ultimate goal of NGOs should not be simply to provide aid but also to contribute to the creation of a capable, efficient state that itself can provide these public goods to its people.

This definitely requires a more holistic outlook, taking into account human rights violations and corruption as part of the context in which people live. There is a problem today where “human rights” and “development” are looked at as two separate areas. But they really need to be integrated in order to generate the best outcomes.

Also, I find it interesting that she (like Dambisa Moyo) is pushing for increased governance conditionalities, and for aid to be cut until governments change their corrupt practices. I definitely see the value in governance conditionalities but would shy away from advocating a complete cut in aid. I like Kristof’s balanced take on the issue, where he emphasizes that aid has its shortcomings but has also seen some successes. We need to find a middle ground between aid and trade (or some way to include both), and perhaps one way to do so is to begin with governance conditionalities.

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  • LostInCheeseland

    Great post and analysis of the text in question. I agree that an NGO's mission must go far beyond providing aid but rather contribute to fostering civil society, and independent local systems. Heartland Alliance is an example of a rather successful NGO that manages to do both.

    Love the new layout!

  • Uzo

    I used to agree with Nicholas Kristof's take on foreign aid until I realized that Foreign Aid falls into 3 distinct type of categories and each category has its own aim(s): humanitarian relief aid, given to victims of natural disasters such as earthquakes, cyclones and floods; military aid; and economic development assistance. Most people have no qualms with humanitarian aid, and I am sure we all would agree that military aid to tyrannical regimes in Africa is the least desirable. Much confusion, however, surrounds the third, also known as official development assistance or ODA. Contrary to popular misconceptions, ODA is not “free.” It is essentially a “soft loan,” or loan granted on extremely generous or “concessionary” terms – concessionary terms that FAVOR GOVERNMENTS GIVING the “aid” MORE THAN THE GOVERNMENTS RECEIVING said “aid”.

    I believe that, regardless of the type of aid given, governance conditionalities won't change anything. Looking back to the late 80's and most of the 90's (some would argue through to the early 2000's) governance conditionaities has been tied to almost all-foreign government and private donor aid and NOTHING has changed. Most of those monies (especially government-given aid; which tend to be ODA-type aid) end up being siphoned off to the foreign bank accounts of the same corrupt government officials. Also ODA-type aid is not given solely to save lives. Aid of this kind is meant to be used to (re)build economies. Since we (and most Africans I know) are concerned with (re)building economies, we need to own up to the truth that TRADE DOES FAR MORE TO REBUILD ECONOMIES THAN AID.

    *I do think that most private-run donor aid agencies tend to do a good job of keeping most of their money out of the hands of said corrupt governments but on the other hand something has to be said for the fact that they perpetuate a work/employment system that does nothing for the African Continent*

    Also I find it interesting that some people continue to say that an outright seizure on Foreign aid (most notably ODA) is not the prescription to the problem of corruption and lack of economic growth in Africa … especially since Africans themselves are the ones calling for a stop to foreign aid. Almost no policy is enacted in the West without the consent of the people. For example if the American government wants to help American farmers, government and policy workers go out into the field to ask the farmers what sort of help they need, what has worked in the past, and what needs to be tweaked or dumped completely. Why don’t non-Africans ask Africans what type of aid they need and whether the aid the west has traditionally provided (and continues to provide) has worked/ is working?

    Maybe it would help if people would adhere to specifics when discussing aid – i.e. specify what type of aid is under discussion whenever aid is being discussed. Because I tend to lean towards the school of thought that separates the field of Human Rights from the field of Development, I think that not specifying what kind of aid we are discussing just blurs the lines and makes it difficult to know exactly what the aim of aid is/what it should be.

  • http://akhilak.com/blog Akhila

    Thanks! I'm glad you like the layout :)

    I absolutely love Heartland Alliance, and have heard a lot about them since I live in Illinois. Great organization that really brings these two missions together and looks at a very holistic method of approaching both human rights and poverty work. In fact I'm hoping to work with their National Immigrant Justice Center before graduation… :)

  • http://akhilak.com/blog Akhila

    Thanks for your in depth comment, I really appreciate the thoughts! I agree that we have to be more specific when talking about aid. Like you, I agree that relief aid should continue (I'd argue this includes not only assistance to victims of natural disasters but also those in IDP refugee camps, and also include basic food aid during famine, etc. I feel like this is a bit broader than what you stated. Correct me if I am wrong, though.) And even Moyo agrees this should continue. Same with the consensus over military aid.

    Thanks for your insights about ODA being soft loans. I agree with what you're saying and if governance conditionalities have not worked in the past, then certainly there is grounds to completely change the efforts. I haven't looked deeply enough into the data regarding governance conditionalities so please excuse my lack of in depth information about this. Maybe governance conditionalities must be MORE strictly enforced in order to have a better outcome.

    However, what about Kristof's stat “the number of children dying each year before the age of 5 has dropped by three million worldwide since 1990, largely because of foreign aid.” I wonder if his data or information is wrong and I question where his source of info is from. I think personally, I'm curious to see more in depth data about whether aid HAS worked or not. If it has, I would see some value in continuing it. I feel like one of the issues right now is that both sides (aid v. trade basically) are taking such a strong opinion and presenting THEIR version of the data. Ultimately we have little idea of what the actual reality is. That's just my opinion, though..

    I agree that trade is the way to go, but again I'm saying that we have to more deeply investigate whether there are ways to make aid work. Look at previously successful programs, and see how they can be built upon and improved. There have to be *some* successful programs that we can draw upon.

    Also, I think many aid agencies – like you said – work directly on the ground and prevent their money from going into the hands of the state or corrupt officials. That type of NGO aid (e.g. IRC, MSF, etc..) might be effective and should be continued or scaled up.

    Thanks for the comment. Sorry for my haphazard rambling – I agree with most of your viewpoints but just think that we have to be more careful in looking into all the past successes (and failures of aid) before making decisions that might negatively impact people's lives.

  • http://twitter.com/wendylee86 Wendy Lee

    great post! as a peace corps volunteer in Cameroon – one of the most corrupt countries in the world – I see aid money going to govt officials' personal hands all the time. all of the volunteers here have stories about how xyz govt gave money to pave roads 30 years ago and the roads are still not paved, and other similar stories.

  • http://akhilak.com/blog Akhila

    Exactly – a lot of development aid simply goes to line the pockets of government officials and ultimately never reaches it's intended destination. Is this really the best way to make an impact? The strategy of giving government aid with no strings attached needs to be seriously reconsidered.

  • pablo

    it sux do it better next time and get some better facts