Eli5 Why is there still a famine in Africa despite the fact that they have been receiving foreign aid for decades?
In: 5
Ukraine produces a phenomenal amount of food that’s sent to these countries. Considering what’s going on there, they have their hands full and can’t produce at their usual levels.
Edit: the world’s largest grain exporter is attacking the world’s 5th largest grain exporter. Russia is now experiencing embargoes, limiting their sale, while Ukraine is being assaulted by Russia, reducing their output. This is having an effect on supply and prices.
Adding explanation since someone was having trouble understanding the whole picture.
Unremittent aid kills the entrepreneurial engine by enabling big government and undercutting prices.
>With aid’s help, corruption fosters corruption, nations quickly descend into a vicious cycle of aid. Foreign aid props up corrupt governments – providing them with freely usable cash. These corrupt governments interfere with the rule of law, the establishment of transparent civil institutions and the protection of civil liberties, making both domestic and foreign investment in poor countries unattractive. Greater opacity and fewer investments reduce economic growth, which leads to fewer job opportunities and increasing poverty levels. In response to growing poverty, donors give more aid, which continues the downward spiral of poverty.
>
>This is the vicious cycle of aid. The cycle that chokes off desperately needed investment, instils a culture of dependency, and facilitates rampant and systematic corruption, all with deleterious consequences for growth. The cycle that, in fact, perpetuates underdevelopment, and guarantees economic failure in the poorest aid-dependent countries.
—Dambisa Moyo, Dead Aid
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Welfare makes people dependent and eliminates competition. The local farmers have no reason to grow food they can’t sell for a reasonable price (livable wage) since they are competing with “free” food from the foreign aid. All sorts of industry and manufacturing is harmed as the foreign aid reduces local production of food and all the other local business that would support farming, tools, vehicles, etc. needed. Can’tcompete with “free”.
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Unremittent aid kills the entrepreneurial engine by enabling big government and undercutting prices.
>With aid’s help, corruption fosters corruption, nations quickly descend into a vicious cycle of aid. Foreign aid props up corrupt governments – providing them with freely usable cash. These corrupt governments interfere with the rule of law, the establishment of transparent civil institutions and the protection of civil liberties, making both domestic and foreign investment in poor countries unattractive. Greater opacity and fewer investments reduce economic growth, which leads to fewer job opportunities and increasing poverty levels. In response to growing poverty, donors give more aid, which continues the downward spiral of poverty.
>
>This is the vicious cycle of aid. The cycle that chokes off desperately needed investment, instils a culture of dependency, and facilitates rampant and systematic corruption, all with deleterious consequences for growth. The cycle that, in fact, perpetuates underdevelopment, and guarantees economic failure in the poorest aid-dependent countries.
—Dambisa Moyo, Dead Aid
Ukraine produces a phenomenal amount of food that’s sent to these countries. Considering what’s going on there, they have their hands full and can’t produce at their usual levels.
Edit: the world’s largest grain exporter is attacking the world’s 5th largest grain exporter. Russia is now experiencing embargoes, limiting their sale, while Ukraine is being assaulted by Russia, reducing their output. This is having an effect on supply and prices.
Adding explanation since someone was having trouble understanding the whole picture.
Unremittent aid kills the entrepreneurial engine by enabling big government and undercutting prices.
>With aid’s help, corruption fosters corruption, nations quickly descend into a vicious cycle of aid. Foreign aid props up corrupt governments – providing them with freely usable cash. These corrupt governments interfere with the rule of law, the establishment of transparent civil institutions and the protection of civil liberties, making both domestic and foreign investment in poor countries unattractive. Greater opacity and fewer investments reduce economic growth, which leads to fewer job opportunities and increasing poverty levels. In response to growing poverty, donors give more aid, which continues the downward spiral of poverty.
>
>This is the vicious cycle of aid. The cycle that chokes off desperately needed investment, instils a culture of dependency, and facilitates rampant and systematic corruption, all with deleterious consequences for growth. The cycle that, in fact, perpetuates underdevelopment, and guarantees economic failure in the poorest aid-dependent countries.
—Dambisa Moyo, Dead Aid
It’s because the foreign aid is actually very little money. The famine issue can only be addressed by the government. Let’s say you are sleeping hungry every night. A stranger gives you 100 USD. That’s guaranteed to solve your hunger issues for a week or two. However, it cannot solve your problem permanently. You will steel need another 100 USD in a week or so.
If you got a job then you wouldn’t need the 100 USD every two weeks.
The famine issue then, can only be solved by the government of that nation. There’s no amount of foreign aid can solve it.
The foreign aid helps because we have some stupid governments in Africa. We have very corrupt leaders who use
I’m Kenyan.
Welfare makes people dependent and eliminates competition. The local farmers have no reason to grow food they can’t sell for a reasonable price (livable wage) since they are competing with “free” food from the foreign aid. All sorts of industry and manufacturing is harmed as the foreign aid reduces local production of food and all the other local business that would support farming, tools, vehicles, etc. needed. Can’tcompete with “free”.
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