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J. Oginga's avatar

A few weeks ago, I wrote a piece about how the end of USAID could be a blessing in disguise to African countries. African states can shift from attracting foreign aid to focusing on attracting FDI and more remittances to their economies by improving property rights, cross-border trade, contract enforcement. and electricity access. Dependency on foreign aid has gone on for a while and I think the external force that have cut if off should open the eyes of African policymakers to look from within to find long-term solutions to the development of the continent. I think part of the solution lies within a functioning state that provides a conducive environment to do business.

https://open.substack.com/pub/oginga/p/no-more-begging-bowls-why-the-end?r=4cgqch&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

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Seattle Ecomodernist Society's avatar

Regardless of motives the termination of USAID, if it holds, is overall a major benefit for African countries. Regarding the tiny portion of spending that helps a medical or food shortage, most African countries have sufficient public budget to cover, and private aid agencies have sufficient budget for any cases that are not feasible for the government. 90% of USAID budget is spent inside the US and other wealthy countries. The vast majority is spent on destabilizing governments. Ukraine and Ethiopia are recent top recipients of funds used to finance political schism leading to separatist wars. The spending on infrastructure is a pittance, much infrastructure from Chinese and Indian firms is cheaper, and US funds are prohibited on key items such as energy. The core economic adjustment needed in most of Africa is processing materials prior to export - along with the security/national union, energy, transport, and education changes needed for this processing. 'Aspiring Leaders', who prioritize strategic long term thinking amongst the wack a mole din, are evident, for example Indonesia and Ethiopia. Cutting USAID is an advantage for the Aspiring Leaders.

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