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Offlinelonestar2004
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"For God's Sake, Please Stop the Aid!"
    #4399193 - 07/13/05 11:34 AM (11 years, 4 months ago)

DER SPIEGEL 27/2005 - July 4, 2005

http://www.spiegel.de/international/spiegel/0,1518,363663,00.html

SPIEGEL Interview with African Economics Expert

"For God's Sake, Please Stop the Aid!"

The Kenyan economics expert James Shikwati, 35, says that aid to Africa does more harm than good. The avid proponent of globalization spoke with SPIEGEL about the disastrous effects of Western development policy in Africa, corrupt rulers, and the tendency to overstate the AIDS problem.



Horst Friedrichs
Economist James Shikwati: "Despite the billions that have poured in to Africa, the continent remains poor."
SPIEGEL: Mr. Shikwati, the G8 summit at Gleneagles is about to beef up the development aid for Africa...

Shikwati: ... for God's sake, please just stop.

SPIEGEL: Stop? The industrialized nations of the West want to eliminate hunger and poverty.

Shikwati: Such intentions have been damaging our continent for the past 40 years. If the industrial nations really want to help the Africans, they should finally terminate this awful aid. The countries that have collected the most development aid are also the ones that are in the worst shape. Despite the billions that have poured in to Africa, the continent remains poor.

SPIEGEL: Do you have an explanation for this paradox?

Shikwati: Huge bureaucracies are financed (with the aid money), corruption and complacency are promoted, Africans are taught to be beggars and not to be independent. In addition, development aid weakens the local markets everywhere and dampens the spirit of entrepreneurship that we so desperately need. As absurd as it may sound: Development aid is one of the reasons for Africa's problems. If the West were to cancel these payments, normal Africans wouldn't even notice. Only the functionaries would be hard hit. Which is why they maintain that the world would stop turning without this development aid.

SPIEGEL: Even in a country like Kenya, people are starving to death each year. Someone has got to help them.

Shikwati: But it has to be the Kenyans themselves who help these people. When there's a drought in a region of Kenya, our corrupt politicians reflexively cry out for more help. This call then reaches the United Nations World Food Program -- which is a massive agency of apparatchiks who are in the absurd situation of, on the one hand, being dedicated to the fight against hunger while, on the other hand, being faced with unemployment were hunger actually eliminated. It's only natural that they willingly accept the plea for more help. And it's not uncommon that they demand a little more money than the respective African government originally requested. They then forward that request to their headquarters, and before long, several thousands tons of corn are shipped to Africa ...

SPIEGEL: ... corn that predominantly comes from highly-subsidized European and American farmers ...



AFP
Ruandan President Kagame has over a million deaths on his conscience, says Shikwati.
Shikwati: ... and at some point, this corn ends up in the harbor of Mombasa. A portion of the corn often goes directly into the hands of unsrupulous politicians who then pass it on to their own tribe to boost their next election campaign. Another portion of the shipment ends up on the black market where the corn is dumped at extremely low prices. Local farmers may as well put down their hoes right away; no one can compete with the UN's World Food Program. And because the farmers go under in the face of this pressure, Kenya would have no reserves to draw on if there actually were a famine next year. It's a simple but fatal cycle.

SPIEGEL: If the World Food Program didn't do anything, the people would starve.

Shikwati: I don't think so. In such a case, the Kenyans, for a change, would be forced to initiate trade relations with Uganda or Tanzania, and buy their food there. This type of trade is vital for Africa. It would force us to improve our own infrastructure, while making national borders -- drawn by the Europeans by the way -- more permeable. It would also force us to establish laws favoring market economy.

SPIEGEL: Would Africa actually be able to solve these problems on its own?

Shikwati: Of course. Hunger should not be a problem in most of the countries south of the Sahara. In addition, there are vast natural resources: oil, gold, diamonds. Africa is always only portrayed as a continent of suffering, but most figures are vastly exaggerated. In the industrial nations, there's a sense that Africa would go under without development aid. But believe me, Africa existed before you Europeans came along. And we didn't do all that poorly either.

SPIEGEL: But AIDS didn't exist at that time.


Shikwati: If one were to believe all the horrorifying reports, then all Kenyans should actually be dead by now. But now, tests are being carried out everywhere, and it turns out that the figures were vastly exaggerated. It's not three million Kenyans that are infected. All of the sudden, it's only about one million. Malaria is just as much of a problem, but people rarely talk about that.

SPIEGEL: And why's that?

Shikwati: AIDS is big business, maybe Africa's biggest business. There's nothing else that can generate as much aid money as shocking figures on AIDS. AIDS is a political disease here, and we should be very skeptical.

SPIEGEL: The Americans and Europeans have frozen funds previously pledged to Kenya. The country is too corrupt, they say.

Shikwati: I am afraid, though, that the money will still be transfered before long. After all, it has to go somewhere. Unfortunately, the Europeans' devastating urge to do good can no longer be countered with reason. It makes no sense whatsoever that directly after the new Kenyan government was elected -- a leadership change that ended the dictatorship of Daniel arap Mois -- the faucets were suddenly opened and streams of money poured into the country.

SPIEGEL: Such aid is usually earmarked for a specific objective, though.

Shikwati: That doesn't change anything. Millions of dollars earmarked for the fight against AIDS are still stashed away in Kenyan bank accounts and have not been spent. Our politicians were overwhelmed with money, and they try to siphon off as much as possible. The late tyrant of the Central African Republic, Jean Bedel Bokassa, cynically summed it up by saying: "The French government pays for everything in our country. We ask the French for money. We get it, and then we waste it."



DPA
Former Central African Republic leader Jean-Bedel Bokassa: "We ask the French for money. We get it, and then we waste it."
SPIEGEL: In the West, there are many compassionate citizens wanting to help Africa. Each year, they donate money and pack their old clothes into collection bags ...

Shikwati: ... and they flood our markets with that stuff. We can buy these donated clothes cheaply at our so-called Mitumba markets. There are Germans who spend a few dollars to get used Bayern Munich or Werder Bremen jerseys, in other words, clothes that that some German kids sent to Africa for a good cause. After buying these jerseys, they auction them off at Ebay and send them back to Germany -- for three times the price. That's insanity ...

SPIEGEL: ... and hopefully an exception.

Shikwati: Why do we get these mountains of clothes? No one is freezing here. Instead, our tailors lose their livlihoods. They're in the same position as our farmers. No one in the low-wage world of Africa can be cost-efficient enough to keep pace with donated products. In 1997, 137,000 workers were employed in Nigeria's textile industry. By 2003, the figure had dropped to 57,000. The results are the same in all other areas where overwhelming helpfulness and fragile African markets collide.
SPIEGEL: Following World War II, Germany only managed to get back on its feet because the Americans poured money into the country through the Marshall Plan. Wouldn't that qualify as successful development aid?

Shikwati: In Germany's case, only the destroyed infrastructure had to be repaired. Despite the economic crisis of the Weimar Republic, Germany was a highly- industrialized country before the war. The damages created by the tsunami in Thailand can also be fixed with a little money and some reconstruction aid. Africa, however, must take the first steps into modernity on its own. There must be a change in mentality. We have to stop perceiving ourselves as beggars. These days, Africans only perceive themselves as victims. On the other hand, no one can really picture an African as a businessman. In order to change the current situation, it would be helpful if the aid organizations were to pull out.

SPIEGEL: If they did that, many jobs would be immediately lost ...



AFP
Congolese line up for a United Nations food delivery in 2002.
Shikwati: ... jobs that were created artificially in the first place and that distort reality. Jobs with foreign aid organizations are, of course, quite popular, and they can be very selective in choosing the best people. When an aid organization needs a driver, dozens apply for the job. And because it's unacceptable that the aid worker's chauffeur only speaks his own tribal language, an applicant is needed who also speaks English fluently -- and, ideally, one who is also well mannered. So you end up with some African biochemist driving an aid worker around, distributing European food, and forcing local farmers out of their jobs. That's just crazy!

SPIEGEL: The German government takes pride in precisely monitoring the recipients of its funds.

Shikwati: And what's the result? A disaster. The German government threw money right at Rwanda's president Paul Kagame. This is a man who has the deaths of a million people on his conscience -- people that his army killed in the neighboring country of Congo.

SPIEGEL: What are the Germans supposed to do?

Shikwati: If they really want to fight poverty, they should completely halt development aid and give Africa the opportunity to ensure its own survival. Currently, Africa is like a child that immediately cries for its babysitter when something goes wrong. Africa should stand on its own two feet.

Interview conducted by Thilo Thielke

Translated from the German by Patrick Kessler


--------------------
America's debt problem is a "sign of leadership failure"

We have "reckless fiscal policies"

America has a debt problem and a failure of leadership.

Americans deserve better

Barack Obama


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InvisibleIsaacHunt
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Re: "For God's Sake, Please Stop the Aid!" [Re: lonestar2004]
    #4399212 - 07/13/05 11:44 AM (11 years, 4 months ago)

"For God's Sake, Please Stop the Aid!"


I presume it's safe to say this asshole isn't one of the starving people depending on aid.


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Offlinelonestar2004
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Re: "For God's Sake, Please Stop the Aid!" [Re: IsaacHunt]
    #4399257 - 07/13/05 12:06 PM (11 years, 4 months ago)

Ron Paul - What Should America do for Africa?
House Web Site ^ | 7-11-2005 | Rep. Ron Paul (R-TX)

At the G8 summit in Scotland last week, we heard once again how the wealthy nations of the world have not done enough to raise Africa out of poverty. At the Live 8 music festival that preceded it, we heard angry demands for ?Justice, Not Charity? in Africa. Implicit in such demands is the collectivist fallacy that wealth is a zero sum game, and therefore western prosperity is possible only at the expense of African misery. As usual, Americans and other western nations are portrayed as villains who somehow conspire to keep Africa poor.

The White House attempted to quell criticism that America is not doing enough to save Africa by announcing that the U.S. would double its economic aid to the continent, from $4.3 billion to $8.6 billion, over the next few years. Neither Congress nor the American people were consulted prior to this pronouncement, I might add. I think the public might not share the administration?s generous mood, especially as we spend billions in Iraq and face single year deficits of $500 billion. Frankly, a federal government with nearly $8 trillion in debt has no business giving money to anybody.

British Prime Minister Tony Blair went a step further, promising that the G8 nations will provide $50 billion in economic aid to Africa by 2010, along with canceling hundreds of millions in debt owed to taxpayers of several western governments. But why should foreign leaders have any say over how American tax dollars are spent? Is our annual federal budget now subject to foreign scrutiny and approval? America is an incredibly charitable nation, as evidenced by the hundreds of millions of dollars donated by private citizens for tsunami relief last year. We don?t need lectures or guidance from the world when it comes to foreign aid.

African poverty is rooted in government corruption, corruption that actually is fostered by western aid. We should ask ourselves a simple question: Why is private capital so scarce in Africa? The obvious answer is that many African nations are ruled by terrible men who pursue disastrous economic policies. As a result, American aid simply enriches dictators, distorts economies, and props up bad governments. We could send Africa $1 trillion, and the continent still would remain mired in poverty simply because so many of its nations reject property rights, free markets, and the rule of law.

As commentator Joseph Potts explains, western money enables dictators like Robert Mugabe of Zimbabwe to gain and hold power without the support of his nation?s people. African rulers learn to manipulate foreign governments and obtain an independent source of income, which makes them far richer and more powerful than any of their political rivals. Once comfortably in power, and much to the horror of the western governments that funded them, African dictators find their subjects quite helpless and dependent. Potts describes this process as giving African politicians the ?power to impoverish.? The bottom line is that despite decades of western aid, more Africans than ever are living in extreme poverty. Foreign aid simply doesn?t work.

Despite this reality, western political leaders who offer to increase aid are always praised for their compassionate and progressive policies. But what about the people who are suffering here at home, whether from hunger, illness, or poverty? Are their lives and well being less important? Where is the constitutional provision allowing American tax dollars to be sent overseas?

The president is promising money we don?t have to solve a problem we didn?t cause. Americans have the freedom to do everything in their power to alleviate African suffering, whether by donating money or working directly in impoverished nations. But government-to-government foreign aid doesn?t work, and it never has. We should stop kidding ourselves and ignore the emotionalist pleas of rock stars. Suffering in Africa cannot be helped by delusional, feel-good government policies.






I have no problem with private Africa aid, but distributing US tax revenues (my money) to africa is little better than theft.


--------------------
America's debt problem is a "sign of leadership failure"

We have "reckless fiscal policies"

America has a debt problem and a failure of leadership.

Americans deserve better

Barack Obama


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InvisibleSilversoul
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Re: "For God's Sake, Please Stop the Aid!" [Re: IsaacHunt]
    #4399291 - 07/13/05 12:23 PM (11 years, 4 months ago)

Quote:

IsaacHunt said:
"For God's Sake, Please Stop the Aid!"


I presume it's safe to say this asshole isn't one of the starving people depending on aid.



This is a complete misconception. Africa does not have a big manufacturing base. Their economy is almost entirely agricultural. When we send food aid over there, it just lowers the prices they can sell at, making them worse off. The best thing we could do for Africa is stop the aid, as well as ending our own farm subsidies.


--------------------


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OfflineSeussA
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Re: "For God's Sake, Please Stop the Aid!" [Re: lonestar2004]
    #4399293 - 07/13/05 12:24 PM (11 years, 4 months ago)

> is little better than theft.

You are a bit more generous than I... it is theft... nowhere in the constitution does the US government have the authority to take from the rich and give to the poor.


--------------------
Just another spore in the wind.


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Offlinephreedom420
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Re: "For God's Sake, Please Stop the Aid!" [Re: Seuss]
    #4399302 - 07/13/05 12:30 PM (11 years, 4 months ago)

Especially the "foreign" poor.


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Re: "For God's Sake, Please Stop the Aid!" [Re: phreedom420]
    #4399361 - 07/13/05 12:59 PM (11 years, 4 months ago)

Any poor.


Phred


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Re: "For God's Sake, Please Stop the Aid!" [Re: Phred]
    #4399523 - 07/13/05 01:53 PM (11 years, 4 months ago)

someone educated on the matter, should explain the 'farm subsidies' system and what it entails.

???


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InvisibleautomanM
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Re: "For God's Sake, Please Stop the Aid!" [Re: Grav]
    #4399956 - 07/13/05 03:49 PM (11 years, 4 months ago)

you are a farmer.
the government pays you NOT to grow corn (example) so that there is less on the market thus raising prices for corn so other farmers can make a living growing corn.

to use an example...
it would be like, 100 years ago, the government paying automobile manufacturers to NOT build cars so horse carriage builders could still have a market.

imo, if you can make money doing a job or performing a service, get a new job.


--------------------
No, no, you're not thinking, you're just being logical. ~ Niels Bohr


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InvisibleIsaacHunt
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Re: "For God's Sake, Please Stop the Aid!" [Re: Silversoul]
    #4399977 - 07/13/05 03:55 PM (11 years, 4 months ago)

This is a complete misconception

No it isn't. I guarantee you the guy who said "Stop the aid" has a full belly. Find me a starving african depending on aid to feed his son tomorrow saying "For gods sake stop the aid".


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InvisibleKrishna
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Re: "For God's Sake, Please Stop the Aid!" [Re: automan]
    #4399980 - 07/13/05 03:55 PM (11 years, 4 months ago)

another good article on the subject - http://www.globalissues.org/TradeRelated/Poverty/FoodDumping/USAid.asp

:grin: for once, lonestar, i think we share a common viewpoint!


as to:

Quote:


> is little better than theft.

You are a bit more generous than I... it is theft... nowhere in the constitution does the US government have the authority to take from the rich and give to the poor.





but what about in cases where the wealth has been made through illegal means? for example, if i rob you, you have the legal right to receive the goods and/or material compensation back from me, right? so multiply it 1,000 fold - take a large class of people made very rich through [direct] support/funding of corrupt regimes that were very 'business' friendly - the case could be made that they have made their wealth by stealing (both labour power and direct resources) from the 3rd world... so why shouldn't they have the right to reparations along the same lines as an individual theft case?


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Re: "For God's Sake, Please Stop the Aid!" [Re: Silversoul]
    #4399987 - 07/13/05 03:58 PM (11 years, 4 months ago)

Quote:

Paradigm said:
Quote:

IsaacHunt said:
"For God's Sake, Please Stop the Aid!"


I presume it's safe to say this asshole isn't one of the starving people depending on aid.



This is a complete misconception. Africa does not have a big manufacturing base. Their economy is almost entirely agricultural. When we send food aid over there, it just lowers the prices they can sell at, making them worse off. The best thing we could do for Africa is stop the aid, as well as ending our own farm subsidies.




Absolutely correct. The little aid that isn't hoarded by corrupt leaders does little to help the common folk there. Not only for the reasons you stated above, but it also creates a dependence on aid which is VERY unhealthy for the country.


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Re: "For God's Sake, Please Stop the Aid!" [Re: Redstorm]
    #4400021 - 07/13/05 04:08 PM (11 years, 4 months ago)

The little aid that isn't hoarded by corrupt leaders does little to help the common folk there

Did you see Live 8? Bob Geldof introduced a girl who was a few hours away from death in 1985. Aid saved her life.


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Re: "For God's Sake, Please Stop the Aid!" [Re: IsaacHunt]
    #4400024 - 07/13/05 04:10 PM (11 years, 4 months ago)

That's one person.

Heping the country be able to stand on its own feet is much more important than 1 person.


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Invisibleniteowl
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Re: "For God's Sake, Please Stop the Aid!" [Re: IsaacHunt]
    #4400370 - 07/13/05 05:42 PM (11 years, 4 months ago)

Quote:

IsaacHunt said:
The little aid that isn't hoarded by corrupt leaders does little to help the common folk there

Did you see Live 8? Bob Geldof introduced a girl who was a few hours away from death in 1985. Aid saved her life.





Have you ever heard the saying..

Give a man a fish, he eats for a day.
Teach a man to fish, he eats for a life time.


This is what is going on in Africa.

Our aid.....isnt helping Africa.

The "good christian" in us wants to "feed the children"......but we are going about it in the wrong way.

Our government is reluctant to admit any wrong doing (look at the Drug War failure), so I doubt that anything will change.


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Re: "For God's Sake, Please Stop the Aid!" [Re: IsaacHunt]
    #4400733 - 07/13/05 06:58 PM (11 years, 4 months ago)

Quote:

IsaacHunt said:
This is a complete misconception

No it isn't. I guarantee you the guy who said "Stop the aid" has a full belly. Find me a starving african depending on aid to feed his son tomorrow saying "For gods sake stop the aid".



You obviously haven't the slightest idea what you're talking about. Sending food to corrupt third-world leaders does not ease their poverty. It strengthens it. Africa does not suffer from a lack of food. It suffers from a lack of income. Considering the fact that it is mostly an agricultural economy, our foreign aid and food subsidies do nothing but make the situation worse.


--------------------


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OfflineGrav
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Re: "For God's Sake, Please Stop the Aid!" [Re: automan]
    #4401710 - 07/13/05 11:44 PM (11 years, 4 months ago)

so in other words, the whole agricultural world market is going to have to be modified in order for Africa to support itself?


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Re: "For God's Sake, Please Stop the Aid!" [Re: Phred]
    #4401783 - 07/14/05 12:21 AM (11 years, 4 months ago)

Value added ball and chain

If someone turned that into a country music song, it would be the most intelligent country music song ever.


--------------------


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Re: "For God's Sake, Please Stop the Aid!" [Re: Grav]
    #4401839 - 07/14/05 12:52 AM (11 years, 4 months ago)

The whole US agricultural system needs to be modified for the sake of all agricultural countries in the world.

Subsidies need to go.


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