Does Foreign Aid Help or Hurt Long Term?

"China has 1.3 billion people, only 300 million of whom live like us, if you will, with Western living standards. There are a billion Chinese who are living in substandard conditions. Do you know anybody who feels sorry for China? Nobody." - Dambisa
Moyo

From the NTY story The Anti-Bono. The Interviewee, Dambisa Moyo, is a native of Zambia with advanced degrees in public policy and economics from Harvard and Oxford, who recently published the book, "Dead Aid", criticizing Africa's dependence on Western aid.

What do you think has held back Africans?

"I believe it’s largely aid. You get the corruption — historically, leaders have stolen the money without penalty — and you get the dependency, which kills entrepreneurship. You also disenfranchise African citizens, because the government is beholden to foreign donors and not accountable to its people."

If people want to help out, what do you think they should do with their money if not make donations?

"Microfinance. Give people jobs."

What is microfinance? These are mini-loans (<$1000) in poor countries for people who want to start a simple business. The loan might buy a few chickens to sell eggs or goats to sell milk. Or a computer to start on online business. Repayments rates have been very good.

Bottom Line

How can you microfinance with just $25?

"Go to the Internet and type in Kiva.org, where you can make a loan to an African entrepreneur. "