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| Source: 1africacnchild |
Since
the 1980s Africa has received billions of dollars in development related aids
and consequently pays up to $20 billion annually in debt service. Sub-Sahara
Africa alone pays about four times as much money as the countries in the region
spend on education and health care annually. The result is that more than 50%
of countries with most international debts are in Africa.
The
effects of civil unrests are hitting Africa hard. Up to 4 million people are at
risk of hunger and starvation and more than a million people die annually from
malaria, yet, huge amounts of government revenue are to be spent on debt repayment.
Africa is in a socio-economic emergency no doubt. In light of this position, it
is apparent that Africa needs immediate help and development aids seems
imminent. This will however effectively put
Africa deeper in debt pit, a condition the continent cannot afford to find
itself.
Is
developmental aid a dead end?
Development
aids have not effectively elevated Africa. Most African countries are still
listed as poor despite a history of massive aid. The state of key sectors such
as the economy, health and education in comparison with the inflow of aids are
not harmonising. The IMF in its 2005 report on Africa, Aid in Africa, revealed that the influx of foreign aid into the
African economy has not been met with tangible development, which is quite
obvious, and that the billions of dollars in aid has not transformed into developments
in the receiving countries with a 5.5% average growth.
Economically
wise, developmental aid is actually a viable alternative but in Africa, it
seems to be a dead end. For an example, the Marshall Plan was a defining step
for Western Europe towards development after World War II; the European
Recovery Program was aimed at rejuvenating Europe’s war-turned economy and to
prevent the spread of communism.It was a major success primarily because ofthe well-structured
development and recovery plans of recipient states and the desire of Europe to
reposition its economic superiority. Africa on the contrary has received around
4 times an equivalent of the Marshall Plan since the 1980s, and a lasting
legacy has yet to ensue,it is a disturbing fact since numerous factors hinder
the translation of the billions of dollars into equitable development, factors
such as endemic corruption, funds mismanagement and economic centralisation.
Corruption
and funds mismanagement are a major reason aid has not lift Africa, corruption
alone costs Africa over $150 billion annually. Funds intended for development
are grossly mismanaged, this is not surprising since nearly every African
government since 1985 has been indicted in at least a corruption scandal,
corruption is a bane to any development agenda, and it cripples progression and
nurtures uncertainties. Before the millennium, numerous African economies were
much economically centralised especially as a legacy of the military swerve, presently,
some aspects of Africa’s economy and business policiesare still structured
around state ownership of means of production, an economic positioning that
negates modern demands.
A
rose flower from the nursery needs fertile not harried soil to thrive,
likewise, development aid needs a diverse economy rich in entrepreneurial
initiatives to capacitate its economic intensions. In reality, governments cannot assure
effective production in all sectors of the state since the basic functions of
security and welfare are more comprehensive in the current world compared to
previous centuries, nowadays governments worry more on national security, diplomacy
and administration of justice, and business should not be inclusive.
Beyond
the end
Africa
is an ingeniously blessed continent. With dispersed abundant natural resources,
millions of investment opportunities and over a billion populations, Africa
logically should be the new frontier. African governments need to look inward.
Agriculture is a sector analysts have echoed to be the oil well of Africa, a
sector estimated to yield billions of dollars annually if well tapped but lies almost
unproductive,only of recent that a few African governments has attempt
innovative measures, agriculture aggregately suffer in Africa.
African
governments should promote innate and indigenous business initiatives. With millions
of Africa youthsunemployed and a convincing percentage of them embracing
entrepreneurial innovations,governments can promote economic development
through provisionsof incentives for entrepreneurs and by making capital
available for small-scale businesses. Promotion of entrepreneurial ingenuities
is a pathway to development for Africa if embraced. In substitution for
development aids, Foreign Direct Investment (FDI) and an Open Market System could
prove an alternative. Just as China, other established economies and lenders
should invest massively in Africa’s key sectors; governments acrossthe
continent should also enact investment friendly policies to attract private
investors.
In
appreciation of these propositions, progressions will ensure and Africa would
in no time go beyond the end.
Anoba Ibrahim
writes at anobasenior@rocketmail.com
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