Book review: Dead Aid by Dambisa Moyo

Why aid is not working and how there is another way for Africa

Dead aid, written by Dambisa Moyo, a Zambian born economist and author, is a controversial and thought-provoking book that criticizes the current approach to foreign aid and argues that is has done more harm than good for the development of African economies. The book challenges thereby the traditional aid model for Africa. Moyo states that the aid has failed to achieve development and economic growth, but instead created a culture of dependency and perpetuating poverty and corruption. In this book review, I will give an explanation of both parts of the book and close with my critical opinion on the book.

The book is divided into two parts. The first part is the world of aid, describing why aid is not working, how aid has developed, how aid is arranged and what effects aid has on Africa. Then part two, in here Moyo describes how a world without aid would look like and offers her alternative to the current aid model.

In the first part of the book, Moyo presents critique of the traditional aid model for Africa. She describes how the western-aid has contributed negatively on the development and the economic growth of Africa and how aid has become a crutch that keeps Africa in poverty, corruption and underdevelopment. In the first part she states that “aid is an unmitigated political, economic, and humanitarian disaster.” Moyo provides well explained arguments and examples, such like Zambia that remain one of the poorest countries in the world despite receiving billions of dollars in aid. The book argues that aid has created a cycle of corruption. With the governments and aid organizations being more concerned with maintaining the aid flows than addressing the root causes of the poverty issue. Moyo concludes in this part of the book that “the aid system is a failure because it incentivizes the wrong things”. Thereby, Moyo also challenges the belief that aid is necessary to address the challenges Africa faces. Referring to countries like China and India who achieved rapid economic growth without significant aid. Before starting this minor and reading this book, I barely ever thought about if aid was working or not, and if aid projects were actually doing the best possible for the country. Reading this critical opinion of Moyo made me realise that its weird not to have questioned the results of the provided aid. This part of the book explains how deeply western aid is connected with the development and growth of the country. I agree with Moyo on the fact that the developed western countries made the underdeveloped depended of aid. Not stimulating grow. And by looking at the data and the money spend, Africa is still were it always was or even worse.

Then moving on to the second part of the book. In the second part of the book Moyo focusses on how a world without aid would look like and presents her alternative approach to the current aid model. The alternative approach of Moyo puts the focus on the private sector investment and entrepreneurship. She argues that the private sector is better equipped to create economic growth, wealth, innovation and development rather than aid. Moyo gives examples of successful African businesses that have created jobs and contributed to the economic growth of a country. Such as Kenya’s Safaricom, which revolutionized the mobile banking in Kenya. She also highlights the role of the private sector in providing the basic need such as healthcare and education. And also the success stories of countries like Botswana and Ghana, which have embraced market-based reforms and attracted significant foreign investment. “What Africa needs is not more aid, but more trade and investment” she states. But, Moyo also acknowledges that private investment alone is not enough. According to Moyo, good governance is essential for creating an environment that is good for creating entrepreneurship and economic growth. I think the alternative approach of Moyo is giving a good new and creative insight on what could change and help developing countries. But, I think the situation is more complex than her plan. I believe her ideas are absolutely in the right direction, but that basic needs are not able to be addressed in the way of het alternative plan.

The book Dead Aid and thereby the view of Dambisa Moyo is thought-provoking. It provides the critique of the aid industry and its negative impact on African development. The book is well-researched and she explains her findings and opinion with well found examples. Her arguments are strong, and contribute to the ongoing debate around aid and development in Africa. From my point of view, the book is making people rethink the current aid model and critically review on this specific topic. I do believe that the solution from Moyo herself is oversimplified by not looking at all factors involved in the process, but that her ideas and opinions are valuable for the future. I think Dambisa Moyo awakened the alertness and the discussion on the way aid is being provided and that her book has valuable information for further research in creating a better development system.