Franklin Cudjoe, Director of Imani, a Ghana reality-based thinktank — that is, a thinktank that rejects the belief that force can be a magic potion — had a wonderful essay in yesterday’s Wall Street Journal. (It’s here, but a paid subscription is required.)
Here’s Franklin’s closing paragraph:
African leaders must be pushed to reduce economic intervention, free financial markets, remove bureaucratic obstacles to setting up businesses, establish property rights and enforce contract law. These are the forces that release entrepreneurial energy. But the ruling cliques will do none of these unless forced to do so as a condition of aid. The [Jeffrey] Sachs aid model has financed tyranny and corruption for 40 years, leaving Africans destitute. The world trade meeting in Hong Kong will hear cries for "Trade Justice" for Africa, representing more protectionism and more state-run, aid-fueled schemes. What we really need is economic freedom and the rule of law at home: We are perfectly capable of improving our own lot if only allowed to do so.
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I would agree with all that up until the point he says we must force the decision upon African leaders by making it a pre-condition of aid.
We would essentially be trying to take over the economic management of foreign nations by force, and propping up corrupt leaders to do it. The IMF has had some good ideas in its time but imposing them on countries has not been terribly successful. Would a better solution not be to phase out trade barriers while simultaneously cutting aid.
Some nations would react with appropriate economic policies while others would continue down a road of misadventure for a while. It is better this way as it would not cause an explosion in the price of agriculural goods or a sudden – continent wide – rush into the narrow market for basic manufactures. Without aid money to prop up corrupt leaders, all devloping nations would eventually develop property rights and the rule of law in their own time.
You might read the whole article w/o subscription at this adress:
http://imanighana.org/page.php?instructions=page&page_id=553&nav_id=152