Comments on: Yet Another Review of “Dead Aid” by Dambisa Moyo http://www.owen.org/blog/2250 Thoughts on development and beyond Tue, 07 Feb 2012 20:50:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: What is catalytic foreign aid? - Global Dashboard – Blog covering International affairs and global risks http://www.owen.org/blog/2250/comment-page-1#comment-13692 What is catalytic foreign aid? - Global Dashboard – Blog covering International affairs and global risks Thu, 13 Oct 2011 11:51:24 +0000 http://www.owen.org/?p=2250#comment-13692 [...] is kind of linked to an idea that floating out of Dambisa Moyo’s Dead Aid point (see good review here of book) that others have made in more sophisticated format in the past – that aid provides an [...] [...] is kind of linked to an idea that floating out of Dambisa Moyo’s Dead Aid point (see good review here of book) that others have made in more sophisticated format in the past – that aid provides an [...]

]]> By: Derrick Muwina http://www.owen.org/blog/2250/comment-page-1#comment-12387 Derrick Muwina Sun, 03 Jul 2011 03:54:15 +0000 http://www.owen.org/?p=2250#comment-12387 Owen, thank you for the review and you certainly raise critical issues Dr. Moyo left out in “Dead Aid.” I think that one of the problems with any discussion of economics is the ahistorical approach and lack of philosophical argumentation. First, Dead Aid lacks both in history and in philosophical sophistication for which a topic of this nature demands. What I find intriguing is that Niall Ferguson who wrote the preface seems to send out a cautionary note by stating, “The correlation is certainly suggestive, even if the causation may be debated” (pX). Dr. Moyo would have done well to show with hard evidence that aid is directly responsible for the things she claims by using statistical data and historical analysis. It seems this was not just an exercise in economics, but in philosophical argumentation as well. Second, Dr. Moyo does not engage her sources well. For example, the misrepresentation of Marx Weber’s thesis (page 31) is a good case in point. Third, I am concerned with the reluctance of some Africans to engage critically the book on grounds that it is a product of an African and therefore exposes Global North hegemonic practices. However, one can argue that free markets economics run amok is as much to blame for the failure of less industrialized countries and now the economic mess in North America/Western Europe as “Dead Aid.” Africans are mistaken to embrace the book just because the writer is African. Equally wrong is to dismiss non-Africans who are raising issues with Dr. Moyo’s presentations simply because they are non-African. Moreover, this is coming from an African, Zambian born who has had the privilege like Dr. Moyo to access American education at its highest levels. Owen, thank you for the review and you certainly raise critical issues Dr. Moyo left out in “Dead Aid.” I think that one of the problems with any discussion of economics is the ahistorical approach and lack of philosophical argumentation. First, Dead Aid lacks both in history and in philosophical sophistication for which a topic of this nature demands. What I find intriguing is that Niall Ferguson who wrote the preface seems to send out a cautionary note by stating, “The correlation is certainly suggestive, even if the causation may be debated” (pX). Dr. Moyo would have done well to show with hard evidence that aid is directly responsible for the things she claims by using statistical data and historical analysis. It seems this was not just an exercise in economics, but in philosophical argumentation as well. Second, Dr. Moyo does not engage her sources well. For example, the misrepresentation of Marx Weber’s thesis (page 31) is a good case in point. Third, I am concerned with the reluctance of some Africans to engage critically the book on grounds that it is a product of an African and therefore exposes Global North hegemonic practices. However, one can argue that free markets economics run amok is as much to blame for the failure of less industrialized countries and now the economic mess in North America/Western Europe as “Dead Aid.” Africans are mistaken to embrace the book just because the writer is African. Equally wrong is to dismiss non-Africans who are raising issues with Dr. Moyo’s presentations simply because they are non-African. Moreover, this is coming from an African, Zambian born who has had the privilege like Dr. Moyo to access American education at its highest levels.

]]> By: Fara Mupesa http://www.owen.org/blog/2250/comment-page-1#comment-11398 Fara Mupesa Mon, 07 Mar 2011 19:29:20 +0000 http://www.owen.org/?p=2250#comment-11398 As an African, I totally agree with Moyo, and am amazed that it has taken so long for someone to stand up and say out loud what is so obvious. Owen's review is typical of another problem we always see in Africa: An African, born and brought up in Africa, with deep ties with the continent, explains Africa's problems - and Owen, an American, comes out and claims that she is wrong. Is it really possible that Owen understands Africa's problems better than Moyo? Of course not. It is relevent, though, that Owen's job and livelihood depends on the Aid industry, and that is obviously more important to him than Africa's future <strong>Owen replies:</strong><em> I'm not sure if you've read my review of her book, Fara; but in it I say that there is a possible case to be made of the kind that Dambisa seems to want to advance, but that Dambisa Moyo doesn't make it. She provides neither cogent argument nor evidence for her point of view. Your comment strikes me much the same way (especially as you, like her, don't seem to be able to get simple facts straight - for example, I'm not an American, as a few seconds of research on this website would have revealed). So if you have arguments to advance for her point of view, I'll be glad to hear them. But just saying you agree with her because you want to agree with her is not a very useful contribution to the debate. Dambisa's most recent book, How the West Was Lost, gives us a good insight into the quality of her scholarship. I commend to you Alan Beattie's review of it <a href="http://www.ft.com/cms/s/2/a9c369c4-4065-11e0-9140-00144feabdc0.html" rel="nofollow">in the Financial Times</a>. Owen As an African, I totally agree with Moyo, and am amazed that it has taken so long for someone to stand up and say out loud what is so obvious.
Owen’s review is typical of another problem we always see in Africa: An African, born and brought up in Africa, with deep ties with the continent, explains Africa’s problems – and Owen, an American, comes out and claims that she is wrong.
Is it really possible that Owen understands Africa’s problems better than Moyo? Of course not. It is relevent, though, that Owen’s job and livelihood depends on the Aid industry, and that is obviously more important to him than Africa’s future

Owen replies:

I’m not sure if you’ve read my review of her book, Fara; but in it I say that there is a possible case to be made of the kind that Dambisa seems to want to advance, but that Dambisa Moyo doesn’t make it. She provides neither cogent argument nor evidence for her point of view. Your comment strikes me much the same way (especially as you, like her, don’t seem to be able to get simple facts straight – for example, I’m not an American, as a few seconds of research on this website would have revealed). So if you have arguments to advance for her point of view, I’ll be glad to hear them. But just saying you agree with her because you want to agree with her is not a very useful contribution to the debate.

Dambisa’s most recent book, How the West Was Lost, gives us a good insight into the quality of her scholarship. I commend to you Alan Beattie’s review of it in the Financial Times.

Owen

]]> By: Sigrid http://www.owen.org/blog/2250/comment-page-1#comment-7129 Sigrid Sun, 01 Aug 2010 21:46:07 +0000 http://www.owen.org/?p=2250#comment-7129 Couldn't have said it any better than you did. Couldn’t have said it any better than you did.

]]> By: jey http://www.owen.org/blog/2250/comment-page-1#comment-5561 jey Sun, 21 Feb 2010 20:11:08 +0000 http://www.owen.org/?p=2250#comment-5561 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. <em>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.</em> 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 http://www.owen.org/blog/2250/comment-page-1#comment-3713 Why Sun, 30 Aug 2009 15:07:41 +0000 http://www.owen.org/?p=2250#comment-3713 I , a simple lay man asks the question. ''Why then, after years and years of aid, is Africa basically or moreorless the same, POOR??? <em>Owen replies</em>: That is a reasonable question, and not one that is easy to answer in a small space. But it is <em>despite</em> the aid Africa has received, not <em>because</em> of it. (We spend $2 trillion a year on health care, yet people still get sick despite, not because of, all that health care.) 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 http://www.owen.org/blog/2250/comment-page-1#comment-3288 more on Moyo and aid « Opalo’s weblog Fri, 10 Jul 2009 05:41:38 +0000 http://www.owen.org/?p=2250#comment-3288 [...] 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 [...] [...] 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) http://www.owen.org/blog/2250/comment-page-1#comment-3159 Ephems of BLB » Blog Archive » Attitudes to poverty in Africa: 1991 to 2009 (updated) Fri, 05 Jun 2009 17:05:03 +0000 http://www.owen.org/?p=2250#comment-3159 [...] 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 [...] [...] 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 http://www.owen.org/blog/2250/comment-page-1#comment-3154 Dead Aid Fan Thu, 04 Jun 2009 11:02:27 +0000 http://www.owen.org/?p=2250#comment-3154 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 – <i>as an investment banker at Goldman Sachs</i> – 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. 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 http://www.owen.org/blog/2250/comment-page-1#comment-3153 Jenny Stefanotti Thu, 04 Jun 2009 07:55:52 +0000 http://www.owen.org/?p=2250#comment-3153 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. 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 http://www.owen.org/blog/2250/comment-page-1#comment-3141 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 http://www.owen.org/?p=2250#comment-3141 [...] 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 [...] [...] 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? http://www.owen.org/blog/2250/comment-page-1#comment-3138 Owen abroad » Is Dambisa Moyo shifting her position? Mon, 01 Jun 2009 14:35:32 +0000 http://www.owen.org/?p=2250#comment-3138 [...] is my review of Dead Aid. Here are some other reviews. Written by Owen in: [...] [...] is my review of Dead Aid. Here are some other reviews. Written by Owen in: [...]

]]> By: Owen abroad » President Kagame on aid http://www.owen.org/blog/2250/comment-page-1#comment-3017 Owen abroad » President Kagame on aid Fri, 15 May 2009 03:04:54 +0000 http://www.owen.org/?p=2250#comment-3017 [...] My review of Dead Aid is here. A list of more reviews is here. [...] [...] My review of Dead Aid is here. A list of more reviews is here. [...]

]]> By: Dave Lucas http://www.owen.org/blog/2250/comment-page-1#comment-2899 Dave Lucas Wed, 29 Apr 2009 16:56:55 +0000 http://www.owen.org/?p=2250#comment-2899 Here’s <a href="http://dave-lucas.blogspot.com/2009/04/interview-dambisa-moyo.html" rel="nofollow">my interview with Ms. Moyo</a> and one of her critics, a young African student attending college in Canada. Here’s my interview with Ms. Moyo and one of her critics, a young African student attending college in Canada.

]]> By: Owen http://www.owen.org/blog/2250/comment-page-1#comment-2831 Owen Sun, 05 Apr 2009 14:06:03 +0000 http://www.owen.org/?p=2250#comment-2831 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 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 http://www.owen.org/blog/2250/comment-page-1#comment-2828 terence Sat, 04 Apr 2009 18:49:51 +0000 http://www.owen.org/?p=2250#comment-2828 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 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 http://www.owen.org/blog/2250/comment-page-1#comment-2815 cooper Tue, 31 Mar 2009 18:54:09 +0000 http://www.owen.org/?p=2250#comment-2815 I tend to agree. On the surface the book and the concept of it had possibilities but she did not deliver. I tend to agree. On the surface the book and the concept of it had possibilities but she did not deliver.

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