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Date: Wed, 22 Jan 2003 17:04:21 +0000
From: Charlotte Utting <[log in to unmask]>
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Subject: [WASAN] FW: Econ-atrocity: US Aid to Africa
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From: Stephen Bezruchka <[log in to unmask]>
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Date: Wed, 22 Jan 2003 08:07:23 -0800 (PST)
To: "International Health" <[log in to unmask]>
Subject: Econ-atrocity: US Aid to Africa
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Beyond good intentions: Is U.S. newly-found interest in Africa real?
by Léonce Ndikumana, Assistant Professor, University of Massachusetts,
Amherst
American interest in Africa has been traditionally peripheral,
opportunistic at best. In the past, aid to African countries supported
client regimes that the United States and its allies needed to prevent the
expansion of communism on the continent, as in the case of former Zaire
under the late Mobutu Sese Seko. In these circumstances, the objective of
economic aid was not economic development of African countries, but instead
aid often contributed to propping up dictatorships that catered to the
interests of the West.
In the last decade, the U.S. has proclaimed newly-found interest in African
economic development and has promised to commit more resources to the
continent. The U.S. "discovery" of the continent was highlighted by the
1998 historic expedition by then president Bill Clinton, whose mission
included a short stop at the Kigali airport where he apologized for the
failure of the United States and the international community to stop the
1994 genocide in Rwanda. Following in the footsteps of his predecessor,
President Bush is scheduled to make his first visit to the continent in
mid-January 2003. Recently, the Bush Administration has expressed its
commitment to African economic development as part of U.S. national
interests: "A growing African economy and regional stability enhance the
economic prosperity and national security of the United States and the
spread of democratic values". The Bush Administration seems to understand
that with the increased threat of global terrorism, the U.S. cannot afford
to ignore an entire continent.
The intentions of helping Africa are certainly evident; but only in
principle. In practice, sub-Saharan Africa (SSA) remains a marginal
partner in U.S. international cooperation. From 1962 to 1996, SSA received
a total of US$24billion in economic assistance from the United
States. This is less than economic assistance to Israel alone during the
same period ($24.7bn) and only slightly more than aid to Egypt ($22bn). In
2000, the U.S. disbursed $1.5bn in economic assistance to SSA, compared to
$0.95bn to Israel, $0.7bn to Egypt, and $1.9bn to Latin America. Each
sub-Saharan African inhabitant received only $2.30 of U.S. aid compared to
$152 per capita for Israel, $11 for Egypt and $3.80 for Latin
America. Evidently, there is a gap between the official rhetoric with
regard to interest in Africa and actual aid flows.
Even before the declaration of war against global terrorism by the Bush
Administration in 2001, the U.S. exhibited strong preference for the "guns"
of military aid over the"butter" of development aid. In 2000, the U.S.
allocated as much as $29bn to military expenditures and less than half that
amount to economic assistance to all countries combined. This implies that
on average, each four-member household in the U.S. contributed about $4000
to military expenditures but only $320 to economic assistance that year the
average American household contributed 12 times more in "war effort" than
in "aid effort". It follows that policymakers have imposed on the American
population their greater preference for guns over butter.
To advance its interests in the fight against global terrorism, the U.S.
will need to adjust its allocation of resources in favor of development
assistance. There is strong empirical evidence in support of the view that
aid promotes economic growth. The evidence also suggests that too little
aid is wasted aid, in the sense that it perpetuates aid dependence . U.S.
interests would be better served by contributing resources to combat
poverty, illiteracy, infant mortality, HIV/AIDS, and environmental
degradation in Africa and other developing regions. A "helping hand"
builds coalitions against terrorism. In contrast, a "fighting hand"
perpetuates alienation vis-à-vis American strategic interests and may
eventually facilitate the expansion of global terrorism.
Sources, references, and further readings
Alesina, Alberto and David Dollar (2000) "Who gives foreign aid to whom and
why?" Journal of Economic Growth 5(1), 33-64.
AllAfrica.com, "White House prepares for multi-nation presidential tour to
Africa," http://allafrica.com/stories/200212200096.thml
Boyce, James K. (2000) "Beyond good intentions: External assistance and
peace building," in Shepard Forman and Stewart Patrick (eds.) Good
intentions: Pledges of aid for postconflict recovery, pp.
367-82. Boulder, CO: Lynne Rienner.
Burnside, Creg and David Dollar (2000) "Aid, policies, and growth,"
American Economic Review, 90(4), 847-868.
Hansen, Henrik and Finn Tarp (2001) "Aid and growth regressions," Journal
of Development Economics, 64, 547-570.
Lumsdain, D.H. (1993) Moral Vision in International Politics. Princeton:
Princeton University Press.
Maizels, A. and M. Nissanke (1984) "Motivations for aid to developing
countries," World Development, 879-900.
Ndikumana, Léonce and James K. Boyce (1998) "Congo's odious debt:
External borrowing and capital flight in Zaire," Development and
Change 29 (2): 195-217.
SIPRI (2002) The SIPRI military expenditure database. http://www.sipri.se
UNCTAD (2000) Capital Flows and Growth in Africa. Geneva: United Nations.
USAID (2002). "FY 2003 Congressional Budget
Justification," (http://www.usaid.gov/country/afr/index.html)
USAID (2002). "U.S. Overseas loans and grants online (Greenbook)
2000," (http://qesdb.cdie.org/gbk/index.html)
World Bank (2002) World Development Indicators 2002.
(c) 2002 Center for Popular Economics
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