Is African Poverty Caused By Their Policies or By Our Stinginess?

We often hear people advocating more aid for poor African nations (Bono and now Blair). It seems compassionat but the assumption seems to be that the cause of their poverty can be cured or at least ameliorated by more foreign aid. Don Boudreau, economist at George Mason, points out what is commonly known—that we have given African nations almost a half trillion dollars in aide over the last forty years but these impoverished nations are no better off. Why then do people focus on us giving more aid as if we are stingy and at fault for the plight of poor nations?

Aid clearly does not alleviate, poverty. Its real effect seems to be to support repressive government. The alternative policy would be to put pressures on corrupt governments to mend their ways. But advocating change in nations’ repressive economic and political policies seems heartless, like blaming the victim. Is that is why we are so reticent in discussing the root causes of their poverty or is it simply misunderstanding of the principles of economic development?