Saturday, August 14, 2010

40% of the African Continent's Savings Are Held Abroad

Dear Readers,

I didn't really like this article, "Why foreign aid and Africa don't mix
By Robert Calderisi"
partially because of its vast over-simplication of the aid industry and its write off of the African continent. It is not all doom and gloom.

The most interesting paragraph was this:

"The Blair Commission Report on Africa in 2005 reported that 70,000 trained professionals leave Africa every year, and until they -- and the 40 percent of the continent's savings that are held abroad -- start coming home, we need to use aid more restrictively."

I'm a big fan of Africans investing Africa. Also, in some African countries, there is plenty of money to use for their own national development. It's a question of what those elites do with their money and privilege.

Or this set of paragraphs:

"Uganda has recently discovered oil and gas deposits but has gone on a spending spree, reportedly ordering fighter planes worth $300 million from Russia, according to a recent report in the New York Times. Does a government that shows such wanton disregard for common sense or even good taste really have the moral basis for insisting on more help with AIDS?"

Now, there are two problems with this thought. One, is it the responsibility of a state/country to take care of its people? I'd say yes, but not everyone would. Two, the US spends 15 times more money on defense than education. Who are we to talk about spending wisely?

Would love to hear your thoughts!

1 comment:

  1. Hi Alena,
    I just came across your blog -- it's nice to see you're doing well since you left the corner of Raymond and University. This post reminds me of some research I did a million years ago comparing how four OPEC countries spent their oil money. There's probably no easier way to assess a government's priorities than seeing what they do when handed a big pile of easy money.
    Keep up the good work
    Scott Hvizdos