Chapter 19: The evolving debate of the effect of foreign aid on corruption and institutions in Africa
The subject of foreign aid remains widely debated in academic and policy-making circles. There has been a recent stream of studies raising doubts about the mechanisms by which foreign aid is governed (Banuri, 2013; Ghosh, 2013; Krause, 2013; Marglin, 2013; Monni and Spaventa, 2013; Titumir and Kamal, 2013; Wamboye et al., 2013). Some accounts in the narrative present a picture of foreign aid being governed by neo-colonialism (Amin, 2014). This stance is shared, on the one hand, by Ndlovu-Gatsheni (2013) on the entrapment of Africa within colonial power webs and, on the other hand, by Kindiki (2011) on the need for the continent to strategically reduce its dependence on systems or regimes of international aid. This chorus has been joined by Obeng-Odoom (2013) who has articulated that foreign aid policies have to be holistic processes that clearly define the needs of poor countries. This articulation converges with the stance of Amin (2014) who has equally emphasized that models of development should not be restricted to what donors wish was good for poor economies. The above new and evolving stream substantially supports recently celebrated literatures on foreign aid, notably, The Bottom Billion (Collier, 2007), Dead Aid (Moyo, 2009) and the Somaliland hypothesis (Eubank, 2012). These literatures have a common denominator of suggesting a rethinking of foreign aid policies and mechanisms.
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