Foreign Aid - Does it Do More Harm than good?

Last week I had the opportunity to attend a debate on the merits and pitfalls of foreign aid. The topic of debate was based on a new book by Dambisa Moyo entitled Dead Aid in which the African-born economist argues that "evidence overwhelmingly demonstrates that aid to Africa has made the poor poorer, and the growth slower." Moyo, along with fellow economist Hernando de Soto were quick to point out the poor track record that aid has had, supporting dictators and tyrants, and destroying the entrepreneurial spirit of Africans who could, if we let them, bring themselves out of poverty.

Challenging Moyo and De Soto were author and economist Paul Collier and activist Stephen Lewis. In his opening remarks Lewis stated "What Dambisa's book fails to acknowledge is the huge impact aid has had on the humanitarian imperative. Millions of people living with AIDS alive today, who without aid for antiretral viral drugs would be dead; millions of children immunized against fatal diseases; over 30 million additional African children in school since the year 2000; modest reduction in extreme poverty from 58% to 51% between 1999 and 2997; 12 million orphans with the prospect of food; malaria death rates cut in half in countries like Rwanda and Ethiopia over the course of just two years because of insecticide treated bed nets. I could go on and on ad infinitum. THIS is aid. Aid that gets to the grass roots. Aid that transforms hope in communities. It is no small matter. It is no band aid."

The debate was a fascinating one, with compelling arguments from both sides. However, as someone who has seen the impact of donor dollars being distributed by reputable organizations on the ground in Africa and in other parts of the world, the discussion itself worries me. It is true that aid money has been abused and that it has fallen into the hands of corrupt leaders BUT it has also transformed the lives of millions of people around the world. What we must be careful of is HOW aid money is used, because when used properly it has the potential to make a lasting difference for people, families, communities and entire countries. We can't stop giving, we just have to be aware of where we are giving.

If your interested in viewing the debate all 2.5 hours are available online.