Book Review: Dead Aid

Industry and investment could offer a viable way ahead for African economies like Rwanda.

27 May 2009

Here’s a turnaround: Live-aid gurus Bob Geldof and Bono may be well-intentioned towards Africa but they’re merely pouring money into a black hole, according to Zambian-born economist Dambisa Moyo.

She argues that Africa’s plight stems not from a shortage of aid but from corruption, lack of transparency, the diversion of scarce talent into the aid industry and away from productive industry, diminishing social capital, and inept government. Movo says a much better path to sustainable development lies in more trade and foreign investment, capital markets, microfinance and savings.

Africa’s single greatest saviour, she adds, is turning out to be China, which last year poured over $100 billion into the continent through investment, not aid.

Of course, there are hefty dividends for China in all this, but at least the investment is helping Africa to help itself. Just don’t ask about human rights.