Problems, Promises, and Paradoxes of Aid: Africa’s Experience

Questions regarding the effectiveness of aid are addressed here using specific case studies. The question of ownership is examined in the context of two debates: 1) to what extent should aid be designed by the recipient country itself? and 2) should aid focus on “need” or “performance”? That is, should donors direct aid to the poorest countries, regardless of their policies and governance, or should aid “reward” countries for doing the right thing? The future of aid is also addressed: should aid continue to be a part of the development agenda for countries in sub-Saharan Africa? If so, how much and what type of aid is needed, and how it can be made most effective?

The major criticism against aid is that it cripples the recipient country’s economic growth by turning it into a passive receiver; in addition, it has been noted that aid is mostly supply-driven, depending upon donors rather than the actual needs of recipients. For this reason, aid may not meet the goals for which it was intended.

To meet the needs of the communities they want to help, donors should work through consultation and a measure of recipient ownership. Donors need to understand context, to protect human rights, and to be guided by principles of social and environmental justice. Other suggested strategies for making aid more effective include peer review; self-assessment; the empowerment of women; encouraging accountability; investing in agriculture; helping smallholder subsistence farmers; introducing ethical and professional standards for civil service; and raising the competence of civil servants.