Dambisa Moyo, an African economist, has joined her voice to the other African economists [e.g. James Shikwati] calling for a full halt to Western aid. Her book is called Dead Aid and it asserts a direct cause-and-effect relationship between $1 trillion of aid and the rise in African poverty rates from 11% to 66%.
Though it's an easy enough signal to fake, I find it noteworthy that Moyo - in this interview at least - repeatedly pleads for some attention to "logic and evidence":
"I think the whole aid model is couched in pity. I don’t want to cast aspersions as to where that pity comes from. But I do think it’s based on pity because based on logic and evidence, it is very clear that aid does not work. And yet if you speak to some of the biggest supporters of aid, whether they are academics or policy makers or celebrities, their whole rationale for giving more aid to Africa is not couched in logic or evidence; it’s based largely on emotion and pity."
I was just trying to think of when was the last time I heard a Western politician - or even a mainstream Western economist in any public venue - draw an outright battle line between logic and pity. Oh, there are plenty of demagogues who claim the evidence is on their side, but they won't be so outright condemning of emotion - it's not a winning tactic. Even I avoid drawing a battle line so stark.
Moyo says she's gotten a better reception in Africa than in the West. Maybe you need to see your whole continent wrecked by emotion and pity before "logic and evidence" start to sound appealing.
Eliezer, it's clear that Africa is in trouble. How compelling an argument does Moyo's book offer for believing that Africa is in trouble because it needs less aid, rather than because it needs more?
In this particular context it seems a bit strange to describe Moyo as an African economist. She lives in London and so far as I can tell has lived in the West for most of her adult life. In particular, the two most obvious reasons one might have for trusting an African economist more on this issue -- that her self-interest is more closely aligned with what's best for Africa than with what's best for the West, and that she's constantly exposed to the economic realities of life in poor African countries -- are less applicable than they would be to someone who actually lives in Africa.
Oh, and ... $1 trillion. Sounds like a lot. That's over the last 50 years, though. $20bn/year. Still sounds like a lot. The population of Africa is a little less than a billion. $20/year per person. Hmm. It's not quite so obvious that that would be enough to have a major distorting effect. Total GDP of Africa is something like $2T/year, which would make foreign aid to Africa something like 1% of its GDP. Again, would we really expect much distortion from that? Or, for that matter: If it's possible for aid to help Africa, would we expect aid at that level to have done much good?
(These are all without-even-an-envelope calculations, and could be badly wrong.)