Foreign direct investment or foreign aid for Africa?

Question

I'm doing a research paper on which way is best to stimulate the African economy: foreign direct investment or foreign aid? I can't find much about it except for a few general UN documents. So if you know any good sources, please tell me their website htmls because i need to cite sources.

Thanks!

Answer 1

I expect that past results can be some guide.  Billions have been poured into Africa in direct aid.  All it did was make dictators and their cronies millionaires.  Certainly has not done much to further the lot of the average African in the whole.

Answer 2

The Bible is my source. Give a man a fish and he has food for a day. Teach him how to fish and he has food for a lifetime. Foreign investment will lead to sustainable economic growth. Direct aid is akin to flushing money down the toilet. This is a no brainer except for those on the left who depend on a permanent lower class to stay in power.

p.s. Forget about referring to general UN documents to gain any insight. That organization is so corrupt and so morally bankrupt as to believe the opposite of anything they say. They also have a huge investment is seeing a permanent underclass. Even if it means supporting dictators.

Answer 3

Foregn Direct Investments its the best to stimulate the African Economy because it can create job for unemployed and tht can strengthen the economy  and make it compitable to other countries economies than foreign aid which is good but it can not strenghthen the economy of Africa and only limited of people benefit from it here is the link i hope it make sense :http://www.sarpn.org.za/documents/d00008...

Answer 4

I do not have a good source but this is what my economy teacher said on the subject.

If people give Africa food (like what the US has been doing), then no one else can make money selling food (why would you buy the food a local farmer is selling if another government will give you food for free) .  If no can make money selling food then no one will come to the country and start selling the food.  Now you are stuck.  You can't stop giving the country food or they will starve and you can't get others to come and sell food because they can't make money.

It is no coincidence that the countries the US have not been helping (i.e. Russia, China, India) have growing economies and Africa that the US had been sending free food to is not doing well.  There are other things that are factoring in but that is a big part of it.

So big picture view is that if there is a short term emergency, bring aid in because a quick fix is necessary but if it is a struggling 3rd world country investment is better.

Answer 5

R. Man's comments above area absolutely correct and well known. Foreign direct aid kills the domestic industry.

Another problem with Africa is government and public corruption. Their governments insist that all foreign aid be distributed through them. So 90% of it goes into their pockets and then toSwiss bank accounts and the people still starve.

Changing the government does not help, because the next one will also be corrupt. Politics is regarded as a way to become rich, like any other businesss and people take       dishonesty for granted. It is away of life. The mistake the West makes is that it assumes what works for them, will also work in Africa. I have lived there, it is another world. But political correctness pevents saying it..