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Taking Africa beyond aid

Developing financial markets in African countries is not always easy, but it is a key factor in economic development

Ulrich Volz and Peter Wolff

guardian.co.uk, Sunday 23 August 2009 13.00 BST

 

Dambisa Moyo's book Dead Aid has received wide media coverage and spurred a new debate on the effectiveness and possible detrimental effects of development aid. Moyo's main message is simple: aid transfers are an obstruction to development rather than a lubricator, because they set the wrong incentives, foster corruption and subsidise and perpetuate underdevelopment. What is notable about the book is not the arguments presented, all of which have been made before in decades of academic debate on economic development by scholars such as the late Peter Thomas Bauer (to whom the book is dedicated) and William Easterly of New York University. Rather, what is adding some excitement to the discussion is the person who is making the argument. A debate that had been previously dominated by ageing rock stars and economics professors has seen a young energetic Zambian woman with degrees from Oxford and Harvard and a successful career in investment banking taking the lead....

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