Aid
More aid for Africa 'will not cut poverty'
IPN Opinion article
"Aid underpins structures and practices that often turn out to be a Klondike for kleptocrats. That is why we should treat with great concern the current push for massive increases in aid," the International Policy Network says.
World trade talks collapse
IPN Opinion article
World trade talks, taking place in Canc˙n, Mexico, have broken down due to apparently irreconcilable differences between rich and poor countries.
James Shikwati of Kenya\'s Inter-Region Economic Network told the EUobserver that despite an apparent power shift towards poorer countries, with the emergence of the so-called Group of 21, the status quo gives little reason to rejoice.
\"It\'s hard to celebrate when things have stayed the same,\" he said, \"market access is not improved, harmful subsidies remain in place, and tariffs on processed goods such as chocolate or packaged coffee have not been reduced or removed. Farmers in the developing world will continue to struggle against these trade barriers\".
Country gears for WTO talks
IPN Opinion article
Meanwhile, the Inter Region Economic Network Executive Director, James Shikwati, attributes Africa\'s inability to negotiate at the WTO talks to its heavy reliance on donor aid to fund the various governments basic development programmes.
He said agricultural subsides in the developed countries have denied Africa an opportunity to prosper, while ensuring that it remains dependant on donors.
\"The developed countries have favoured sending donor money to poor countries as a way subsidising their markets,\" he said. He was speaking during the Media launch on freedom to trade campaign held at a Nairobi hotel.
He said African countries need to adopt both long and short-term policies to help boost their negotiating abilities.
He also urged Kenya and other African countries to enhance inter linkages by opening up trade within their respective borders.
African NGO Calls on G-8 Leaders to Rethink Strategy on Africa’s Poverty and Disease Predicament
IPN Press release
Rethink Aid Strategy to Poor Countries
IPN Opinion article
Government to government aid has damaged existing institutions of productivity making poor countries poorer. Aid encourages governments to seek foreign assistance through beggary, extortion or threats, instead of creating needed change at home. Bauer observed, 'Unlike manna from heaven which descends o≠n the whole population, these subsidies go to the government'.4 Government to government aid facilitates statism, which is hostile to the needs of the individual. It normally supports government directed projects and feeds a system of corruption. In other words aid has tended to erode the proper role of governments in poor societies, hence scuttling o≠ngoing development and scuttling any reforms that may be already underway.
Is aid the opiate of the third world?
IPN Opinion article
If Africa is to develop and compete in the present world driven by market economics, then it ought to invest in entrepreneurship. It is entrepreneurs who seek out profitable opportunities, organise productive units, and compete fiercely, keeping innovation high and making the country wealthy as well as enriching themselves.
This cannot happen when foreign aid puts governments into business instead of doing so for the private sector.
Kenyan leader must target corruption
IPN Opinion article
While the Financial Times is correct to note the need for serious systemic reform in Kenya, restarting the flow of aid should not be the priority for the new president (\"Kenya\'s chance for a new beginning\", December 30).
Rather, Mwai Kibaki must target corruption at every level, from the highest government official to the low-level bureaucrats who routinely accept bribes for the most commonplace of tasks, such as paying utility bills or proving ownership.
However, he will also need to protect formal property rights, promote the rule of law and encourage free markets.
The developing world needs trade, not aid, to help the poor
IPN Opinion article
Guilt and goodwill have blinded many to the damage that aid can do. Trade, not aid, is the solution for the poor. At this week\'s informal WTO ministerial meeting in Sydney, trade ministers should make good on their promise at Doha to create a world trading system that benefits all participants. That means reducing tariff and non-tariff barriers on all goods, as well as reducing agricultural subsidies.
