THIS IS AN EXTRACT FROM A PAPER ON AID WRITTEN AND AUTHORED BY HUMPHREY POLEPOLE
“…aid can be redeemed. …‘the central question in aid discourse is not ‘Does aid work?’, but rather ‘How can aid to poor countries be made more effective?’” (Maxwell 2007)
The History of Aid
The history of post-war aid dates back in the 1940s and can be described into seven categories: starting at the Bretton Woods Conference, the Marshal Plan in the 1950s, years of industrialization and infrastructural setup and development in the 1960s, Aid responding to poverty 1970s, Aid supporting stabilization and structural adjustment in the 1980s, Aid as a condition to introducing democracy, multiparty and good governance in the 1990s (Moyo 2009), and last in the contemporary discussions Aid as a solution to Africa’s complex problems including emerging new discussions such as partnerships for Africa’s development and growth.
It is common today to hear the term “partnership” in the development discussions, even the so called donors are shying away from calling themselves donors and rather development partners. This new notion or rather portfolio has been echoed at difference forums… In the EU presidency statement delivered at the United Nations Economic and Social Council pinpoints… “Only working together in constructive partnerships can we provide health services and help empower those most in need, particularly in times of economic and social crises” (EU Presidency 2009).
Aid in Africa 1980s with the Structural Adjustment programmes (SAPs)
Between 1974 and 1988 [in Tanzania] real wages fell by 83 %, and the state was unable to provide even the minimum of social services. Achievements in the health and education sector were reversed. In response to this, more people became self employed, and many organized themselves in welfare organizations that could be based on religious, regional, ethnic or professional affiliation.
In response to this crisis African governments had to look for help, there were nowhere else to look for help than to the famous Bretton Woods Institutions the World Bank (WB) and the International Monetary Fund (IMF). The help in terms of conditional aid was granted to many African governments, this help had very clear conditions just to mention;-
- Governments had to cut government spending and particularly expenditure on services that are crucial to the poor, the vulnerable and the aged (education, health, housing, water, etc.);
- Removal of import controls and removal of low prices for even essential goods and allowing the free market to determine prices;
- Devaluation of currencies
- Tighten the control of money supply and credit to burn away inflation and raise interest rates to encourage savings
- Privatizing government enterprises which by then there were no readily available local investors to take over.
As mentioned earlier, the government [mainly run by socialist ideas then…] had come to realize that with the conditions of structural adjustment, the non-governmental sector would have to play a vital role in the delivery of services and a variety of organizations soon entered the space left open by the withdrawal of the state. This was not a systematic hand over; [to some sectors] it was a hand over to charities due to economic desperation, the inability to run the state by providing basic social services to the people. Contrary to what the SAPs had anticipated most African countries had immense economic regressions.
IF INTERESTED IN READING THE FULL PAPER enquire via e-mail hpolepole@hpolepole.net