This link has been bookmarked by 3 people . It was first bookmarked on 01 Mar 2007, by Anders Tunold Kråkenes.
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01 Mar 07
Anders Tunold Kråkenes
foreign aid is an ineffective instrument that distorts recipients' incentives for the worse. Aid is given with the assumption that its recipients lack the necessary resource base to generate tax revenue to meet their public expenditure needs. Yet in man-
Unfortunately for Africa, this internal capacity is lacking all around. We need to stop looking outside of the continent for solutions. Africa needs internal reform before it can benefit from the rest of the world - regardless of what China offers.
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no African country (including Africa's success story - Botswana) has met their quota
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The real cause of Africa's trade predicament is mismanagement of policies and institutions that form the relationship between government and exporters. For example, Africa's major exports are agricultural. Governments in Africa have for many years pursued policies that reduced farmers' incentives to produce both food crops and export crops. Bad government is to blame for the continent increasingly becoming a food importer.
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Africa's inability to trade itself out of poverty is not due to bad trading practices by the Western world.
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foreign aid is an ineffective instrument that distorts recipients' incentives for the worse. Aid is given with the assumption that its recipients lack the necessary resource base to generate tax revenue to meet their public expenditure needs. Yet in many African countries, the problem of insufficient tax revenue is caused by poor tax administration, bad policies, and institutions that undermine growth. Then, once taxes come in, there is poor prioritization of expenditures.
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09 Feb 07
dan maertensChina en Westen doen gewoon hetzelfde, Africa moet zelfredzaam zijn
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