Thursday, January 16, 2014

Issue 251 Helping Africa part 1 January 16, 2014


The first step in helping the people of the African continent is changing how we give them aid. The current model is meant to help, but is also breeds dependency. As such some minor tweaks to the aid based system will help in removing this problem.

Step 1: Stop giving money to the African governments. The reason that you should not give money to these governments is not just due to corruption, but because they all take a cut of the aid to give out the aid in the first place. Yes, that is correct; the aid we give is not all being used to help the people of Africa, but to line the pockets of government officials. Unfortunately, this problem does not reside in Africa alone, but here in countries like the United States where government takes a cut of the money as well. So who do we give the money too?

Step 2: The money must be given directly to the African people for this to work. People in Africa know exactly what they need to survive and to thrive. As such, giving the money directly in some fashion would be the most efficient method to ensure that all the aid actually gets to those in need. However, giving that money as pure cash is not always the best method. So using the money to pay for the schooling of an African child, the health care, or as a cash prize for completing there education would be the best method. Limiting the number of times they would get aid is also crucial so that dependency does not develop. In fact there is a charity which is at the website "givedirect.org" that gives people one time donations of $1000 and a cell phone to keep track of how they are doing. They cited that just giving these people an education may not be enough and that they may need some sort of money to start their business or improve there lives. One of the people they helped bought a motorcycle and uses it as a taxi, while another used the money to buy welding equipment as he was taught how to weld but lacked the means to buy the equipment himself. Others use the money to buy tin roofs as opposed to the thatched roofs that can have animals living in them (this has cut down on diseases). So direct charity and done in a responsible way is essential to success.

Step 3: Do not donate clothing to the people of Africa. Yes, I sound like a tyrant here, but there is a very important reason. When you donate cloths to the African people they get them for free and you think you just helped someone. Problem is that you have actually killed off a business which creates jobs and gets people out of poverty. That business you killed off is Africa's clothing businesses. By giving cloths, you are actually impoverishing these businesses and perpetuating unemployment. If you stopped giving cloths, and instead used the money to buy cloths from the clothing businesses in Africa, then and only then would that be actually helping the African people. This is because, by buying direct, you allow that business to grow and prosper which means they hire more people to make the cloths and man the store fronts. Get it. By buying goods from the African people to help them, you will eventually not need to provide future aid because the economy in Africa will be so improved that they will be able to care for their own poor by themselves.

Step 4: Like with clothing, food is also a problem. When we ship food over, we take away businesses from the local farmers (not to mention get it stolen by pirates like those in Somalia). As such, these farmers loose revenue and stop farming. So like with step 3, buy the local food to feed the poor. This enriches the local farmers and allows them to expand there businesses which in turn creates more jobs.

Step 5: What should not change is the doctors without boarders help to these people and the education programs that directly aid in job training. These will prove essential to the future of the African economy with respect to entrepreneurs taking advantage of theirs and other people’s skills to create new businesses. Of course, I would like the $1000 cash prize and cell phone to be given upon completion of the education course as per the "givedirect.org" model. Some may be wondering what’s up with the cell phone? Well, in Africa, as infrastructure is almost non-existent, cell phones can be used to transfer money to individuals rather than traditional cash. This enables people to protect themselves from thieves as they don't have to carry cash and the phone acts as a tool for communication for both personal and business calls. In short, the cell phone and the ever expanding cell phone and internet infrastructure have become integral to the future of Africa's prosperity.

Conclusion: These steps are designed to change how we give aid to the African people. I firmly believe that the current aid system is not designed to help Africa, but to make the countries there a neo-colony for exploitation of goods and services. Lobbying groups like the farm lobby make big money off shipping food from the U.S. to Africa via the Federal Government, with some of Africa's governments taking that food and giving it only to loyal supporters. As such, the current methods must end. These changes on how we give charity are key to helping Africa become independent and wealthy and thus are sorely needed. Stay tuned for part 2 tomorrow which examines what I think should happen to Africa at the governmental level for it to achieve prosperity.

No comments:

Post a Comment