Economic Success vs. Economic Failure in Botswana and Zambia
Susanna E. Samson
Economic Success vs. Economic Failure
University of Arkansas at Little Rock
Economic Success vs. Economic Failure
Introduction
Foreign aid is a controversial subject that has been debated by many scholars and politicians. The main area of discussion begins with the simple question; is aid hurting or helping countries in need? In the 1960s, the United States and other donors began concerted efforts to provide foreign aid to help the newly independent nations of Africa develop their economies (Bovard, 1986). Currently Africa is the largest recipient of foreign aid and “evidence of ineffective aid is spread all throughout” (Andrews, 2009). The two countries in Africa that are focused on, Botswana and Zambia have both been recipients of foreign aid; however their financial success is on opposite ends of the spectrum. Currently, Botswana stands out because of their economic success, while Zambia has suffered economically and relies on foreign aid. This paper discusses these two countries which are similar in many aspects while having two major differences, their financial position and success rate. Foreign aid is defined as, “economic, technical, or military aid given by one nation to another for purposes of relief and rehabilitation, for economic stabilization, or for mutual defense.” (Dictionary) Consequently, there are three types of foreign aid; financial aid (grants and loans), food aid, and technical assistants. This information is essential to distinguish in regards to foreign aid in order to remain as accurate as possible when discussing it. Dambisa Moyo is originally from Zambia and she feels that foreign aid literally has caused the majority of Africa more hurt than help. She stated that “between 1970-1998, when aid flows to Africa were at their peak, poverty in Africa rose from 11% to a staggering 66%” (Moyo, 2009). There are many different factors that can play a part in such astounding numbers, however “more than 1 trillion in
Economic Success vs. Economic Failure
University of Arkansas at Little Rock
Economic Success vs. Economic Failure
Introduction
Foreign aid is a controversial subject that has been debated by many scholars and politicians. The main area of discussion begins with the simple question; is aid hurting or helping countries in need? In the 1960s, the United States and other donors began concerted efforts to provide foreign aid to help the newly independent nations of Africa develop their economies (Bovard, 1986). Currently Africa is the largest recipient of foreign aid and “evidence of ineffective aid is spread all throughout” (Andrews, 2009). The two countries in Africa that are focused on, Botswana and Zambia have both been recipients of foreign aid; however their financial success is on opposite ends of the spectrum. Currently, Botswana stands out because of their economic success, while Zambia has suffered economically and relies on foreign aid. This paper discusses these two countries which are similar in many aspects while having two major differences, their financial position and success rate. Foreign aid is defined as, “economic, technical, or military aid given by one nation to another for purposes of relief and rehabilitation, for economic stabilization, or for mutual defense.” (Dictionary) Consequently, there are three types of foreign aid; financial aid (grants and loans), food aid, and technical assistants. This information is essential to distinguish in regards to foreign aid in order to remain as accurate as possible when discussing it. Dambisa Moyo is originally from Zambia and she feels that foreign aid literally has caused the majority of Africa more hurt than help. She stated that “between 1970-1998, when aid flows to Africa were at their peak, poverty in Africa rose from 11% to a staggering 66%” (Moyo, 2009). There are many different factors that can play a part in such astounding numbers, however “more than 1 trillion in
Bibliography: Acemoglu, D. (2001, July 11). An African Success Story: Botswana. Retrieved 2011, from Colby University: http://www.colby.edu/economics/faculty/jmlong/ec479/AJR.pdf Andrews, N Beaulier, S. (2004). Explaining Botswana 's Success: The Critical Role of Post-Colonial Policy. Research Fellow , 11-27. Bovard, J. (1986, January 31). The Countinuing Failure of Foreign Aid. Retrieved May 1, 2011, from CATO Institutes: http://www.cato.org/pubs/pas/pa065.html Bureau of African Affairs Dictionary. (n.d.). Retrieved May 10, 2011, from http://dictionary.reference.com/browse/foreign+aid Grotpeter, J Guest, R. (2005, March 22). Botswana Vs. Zambia - Success Vs. Failure. Retrieved May 7, 2011, from The Globalist: http://www.theglobalist.com/StoryId.aspx?StoryId=4403 Gulhati, R Moyo, D. (2009). Dead Aid. United States: Farra, Straus, and Giroux. Samatar, F. O. (1997). Industrial Strategy and the African State: The Botswana Experience. Canadian Journal of African Studies , 31 (2), 268-299. Simwanza, J. (2010). Public Sector Reforms in Africa: A Comparison of Zambia and Botswana. International Research Society for Public Management , 1-21. Situmbeko, L. (2004, April). World Development Movement. Zambia Condemed to Debt . U.S. Department of State. (2011, April 18). Retrieved May 3, 2011, from Bureau of African Affairs: http://www.state.gov/r/pa/ei/bgn/1830.htm