Friday, March 05, 2010

Dambisa Moyo is asked about Haiti, banking and the future

The controversial economist Dambisa Moyo was interviewed recently by the New Statesman. Moyo the author of "Dead Aid" the book that claims that international aid has done more to harm Africa than help it.

In the interview, Moyo is asked about Haiti, the recent banking crisis, and her predictions for the future. Moyo also talks about her own future, previewing her upcoming book and plans to get back into finance. Sophie Elmhirst posed the questions to Moyo.

Your vision for Africa's future is a controversial one. Do you really believe that aid is dead?
If aid were a private-sector business or a political system, it would definitely have gone by now. But here we have a system that has been going on and on and not delivering.

So what's your solution?
There is no evidence anywhere on earth that aid has delivered long-term growth. The countries that have moved hundreds and millions of people out of poverty in our lifetime - China, India, South Africa, Botswana - have not relied on aid to the extent that some African countries do. Can we have a discussion about that?

How do you answer those who say aid is essential to development?
Behind closed doors, pretty much every international aid minister says that there is a fundamental problem with the system. Many African leaders are on record saying that it doesn't work, including Paul Kagame [of Rwanda] and Raila Odinga [of Kenya].

What about in a case like Haiti?
People need jobs. There is no magic trick. You need investment and job creation. Haiti can't come out of this disaster dependent on aid -
it's not viable.

Don't developing countries need the help of rich ones to mitigate the effects of climate change?
The people at the forefront of this agenda are not going to be the aid agencies. In the past, the big development issues were led by western governments and the emerging markets were silent. But now, we've got a situation where they are taking much more of a lead.

Has the financial crisis exposed the western economic system as unworkable?
Quite the contrary. Unfettered capitalism does not work, but over the past 300 years capitalism has created jobs and reduced poverty. To turn around and say that it is defunct is really a stretch. The banks didn't do anything illegal. It's completely simplistic to say that they are bad.

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