Comments on: Yet Another Review of “Dead Aid” by Dambisa Moyo

By: jey

jey — Sun, 21 Feb 2010 20:11:08 +0000

I don’t think that the comparison with the US health care is valid because most of the money is spent on treatment of diseases, not on prevention, although in recent times there has been an emphasis on prevention. Therefore, to assess the effectiveness of health care spending, one has to look at the effectiveness of medical treatment. Moyo’s argument is still valid because she argues that aid (the solution) has not been effective in alleviating poverty and generating economic growth (the problems). She made a strong case of how aid (excluding humanitarian and emergency aid) has fuelled corruption in Africa and reduced the accountability (in terms of providing basic services such as education, health, infrastructure, etc) of African leaders to their citizenry. When aid attempts to fill the gaps in education, health, it makes it easier for African leaders to evade their responsibilities.

Owen replies: Jey – I did not find anywhere in the book the “strong case” that you found that aid has fuelled corruption or that it has reduced the accountability of African leaders. She offered neither a theoretical argument nor empirical evidence for these assertions. I didn’t understand why you found the health care analogy unsatisfactory, either.

By: Why

Why — Sun, 30 Aug 2009 15:07:41 +0000

I , a simple lay man asks the question. ''Why then, after years and years of aid, is Africa basically or moreorless the same, POOR??? Owen replies: That is a reasonable question, and not one that is easy to answer in a small space. But it is despite the aid Africa has received, not because of it. (We spend $2 trillion a year on health care, yet people still get sick despite, not because of, all that health care.)

By: more on Moyo and aid « Opalo’s weblog

more on Moyo and aid « Opalo’s weblog — Fri, 10 Jul 2009 05:41:38 +0000

[...] africa | Tags: africa, Aid, Dead Aid, Ndabisa Moyo, poverty A reader gave this link to a certain critique of Moyo’s “Dead Aid.” The criticism offered by this gentleman, although weighty [...]

By: Ephems of BLB » Blog Archive » Attitudes to poverty in Africa: 1991 to 2009 (updated)

Fri, 05 Jun 2009 17:05:03 +0000

[...] such aid in five years’ time. The book and Ms Moyo’s campaign have incurred damaging criticisms from informed development economists who have demonstrated on the basis of numerous studies, ignored in Dead Aid, that development aid [...]

By: Dead Aid Fan

Dead Aid Fan — Thu, 04 Jun 2009 11:02:27 +0000

I think the book actually does a great job of raising the profile of this debate (previously raised by Easterley and Bauer) through the simple fact of it being written by an African.
The book’s not perfect but it’s clearly not the debate that the aid community wants to have. They’re happy with the “doubling dollar aid” mantra. Evidence-based aid will be a critical part of the future.

Your review (here & pdf) reveals many biases and whilst it may seem sanctimonious of me, you cannot debate from an entrenched position:

Ad Hominem:

“Moyo has the front to accuse people working in the aid industry of promoting their own interests, and then – as an investment banker at Goldman Sachs – to advocate instead that the poorest countries should be encouraged to borrow more in private capital markets.”

Entrenched position:

“There are reasonable people who think…” i.e. she’s unreasonable

You argue badly about corruption, slating Moyo and then saying “now it may well be true that some aid is lost to corruption…” – therein hangs a tale.

Your overarching healthcare argument is a non-sequiteur. Period. Money does not reverse ageing and death. You jumped on the word ‘cursory’ without seeing the words “Even the most cursory”. This doesn’t mean she only looked at it this way.

The simple fact is that her argument is a threat to the hegemony of the business-class travelling, landcruiser driving, ex-pat aid-skimming cultural uber-colonialists who believe they are saving Africa. This is not a criticism of their sincerity (although bounded rationality/integrity clearly applies).

Other critics state that why not have both – aid and private sector growth, without recognising the crowding out both physically & psychologically. Aid is a subsidy for bad government!

The mosquito net story is the one to read and think about. If true it is a complete and succinct metaphor for the failure of aid.

By: Jenny Stefanotti

Jenny Stefanotti — Thu, 04 Jun 2009 07:55:52 +0000

Well put Owen. Esp. like the point you make that you’d have to show aid does more harm than good AND can’t be improved before concluding it should be stopped. Moyo is raising important issues, unfortunately that’s about it. Perhaps down the line we will at least give her credit for re-igniting the debate.

By: From Poverty to Power by Duncan Green » Blog Archive » Dambisa Moyo goes stellar - why? Some reviews by fellow Africans and others, including me

Tue, 02 Jun 2009 09:34:31 +0000

[...] and the state-citizen social contract), but overall, it has been taken to task by Kevin Watkins and Owen Barder among others for highly selective use of the evidence (even by NGO standards…) and dodgy [...]

By: Owen abroad » Is Dambisa Moyo shifting her position?

Owen abroad » Is Dambisa Moyo shifting her position? — Mon, 01 Jun 2009 14:35:32 +0000

[...] is my review of Dead Aid. Here are some other reviews. Written by Owen in: [...]

By: Owen abroad » President Kagame on aid

Owen abroad » President Kagame on aid — Fri, 15 May 2009 03:04:54 +0000

[...] My review of Dead Aid is here. A list of more reviews is here. [...]

By: Dave Lucas

Dave Lucas — Wed, 29 Apr 2009 16:56:55 +0000

Here’s my interview with Ms. Moyo and one of her critics, a young African student attending college in Canada.

By: Owen

Owen — Sun, 05 Apr 2009 14:06:03 +0000

Hi Terence

Here are some papers:

Positive correlation between aid and revenue:
Bourguignon, François, Alan Gelb and Bruno Versailles (2005). “Policy, aid and performance in Africa: The G11 and other country groups.” Working Paper, World Bank, Washington, DC.

Survey paper – evidence not clear but mainly a negative relationship between aid and revenues:
McGillivray, Mark and Oliver Morrissey (2001) “A Review of Evidence on the Fiscal Effects of Aid”, Research Paper No. 01/13 (Nottingham: Center for Research in Economic Development and International Trade).

Paper finds that grants have negative impact on revenue, loans have a positive impact on revenue:
Gupta, S., B. Clements, A. Pivovarsky, and E.R. Tiongson (2003). “Foreign Aid and Revenue Response: Does the Composition of Aid Matter?” IMF Working Paper WP/03/176. International Monetary Fund, Washington, D.C.

Kind regards
Owen

By: terence

terence — Sat, 04 Apr 2009 18:49:51 +0000

Thanks Owen, that’s an excellent review. I had one question: at the top of page 6 you write that tax revenues appear to be superficially positively correlated with ODA, do you have a reference for this?

I’m slowly working my way through the various debates on ODA and am keen to see the numbers on this one.

Thanks again.

Terence

By: cooper

cooper — Tue, 31 Mar 2009 18:54:09 +0000

I tend to agree. On the surface the book and the concept of it had possibilities but she did not deliver.