Oskar Wallin Comm 101

Comm 101 Class 20: Social Enterprise class preparation

I agree with Dambisa Moyo ‘aid is dead’ because the negative long term effects of developmental aid can be seen throughout Africa. It hinders the local economy and prevents brands from establishing themselves in the market. The possibility of aid also lowers urgency and insensitive to work hard.

A common misconception is that Dambisa Moyo is against all aid. Bill Gates even claimed that she promotes evil (Nsehe, Mfonobong). I don’t agree with this statement because there is a big difference between humanitarian aid and developmental aid. Humanitarian aid is necessary in order to save lives and suffering people. Developmental aid is meant to catalyse economic growth and improve industry. In reality, this does not happen. You could argue  that a lot of resources are donated for political reasons, out of guilt and without sufficient knowledge on the countries economy. Developmental aid simply can’t be a platform for sustainable growth. As resources come in and undercut prices, local business suffers and companies can’t expand.

Another important issue caused by aid is corruption. It is estimated that Africa loses 150 Billion USD per year due to aid (Glassman, James). However, the biggest issue is damage done to local business as western products are distributed in the form of aid.

Works Cited:

Glassman, James. “Foreign Aid: The Good and the Bad.” Forbes. Forbes Magazine, n.d. Web. 16 Nov. 2015.

Nsehe, Mfonobong. “Bill Gates Criticises Zambian Economist and She Responds with Fire.” Forbes. Forbes Magazine, n.d. Web. 16 Nov. 2015.