The flood of foreign aid creates economic problems by driving down the price of locally produced grain & produce, forcing farmers who might otherwise be self sufficient into poverty. It also leads to the governments of the recipient countries to become less reform oriented as they lose the incentive to do so.Ideally, the U.S. and E.U. would drop remaining agricultural and textile subsidies and quotas, opening domestic markets to African exports. Don't hold your breath.
Ironically, it may even cause hunger, as has happened in some villages where the men have locked up the surplus grain & forbidden its consumption by their wives & children in order to receive aid. These men have an excellent understanding of the workings of aid agencies & are happy to exploit them. The women & children of Niger are paying the price.
For now, the West should emphasize small, market-oriented loans and funding to individuals, not governments. Unless litigation-happy "progressives" make development aid verboten under the "living Constitution." Think of it as "double secret probation."
1 comment:
> Ideally, the U.S. and E.U. would drop remaining agricultural and textile subsidies and quotas, opening domestic markets to African exports. Don't hold your breath.
Oh, God, no!! Then we'd be making money exploiting the poor Africans by using their cheap labor for our own benefit... Can't have anything like that happening. Might lead to them developing a market or something.
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