![]() ![]() The other is that foreign aid is not a problem by itself, but misallocation of resources, corruption, and bad governance limit Africa’s ability to use aid. One is that Africa’s aid-dependent economic model provides “free” money which prevents countries from taking advantage of opportunities provided by the global economy. There are two sides to the debate on foreign aid to developing countries, in particular in sub-Saharan Africa. ![]() ![]() ![]() This is problematic since no country in the world has achieved substantial development based on reliance on aid. Some forecasts suggest it could rise to 90% by 2030.Īfrica is the only continent in the world where official aid inflow outstrips private capital inflow by a large margin. Over 75% of the world’s poor live in Africa today. The fact that foreign aid as currently practised has failed to achieve its poverty reduction targets in Africa is clear from the data. However, several studies have shown that foreign aid has failed to deliver sustainable economic growth and poverty reduction. Many African countries still rely heavily on foreign aid. Tigist Mekonnen Melesse does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. Post-PhD Visiting Research Fellow at the Center for Effective Global Action, University of California, Berkeley ![]()
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