Foreign aid has always been seen as the best platform to transform Africa from a third world, developing continent ranking to a global power player that is independent, self-sufficient, and thriving. To boost this untrue assumption foreign governments especially the U.S. government have invested lots of money in foreign aid to Africa with the hope that these investments will help transform the economic capability of these African countries, as well as reap benefits for the governments providing the aid, but unfortunately, corruption, ineffective leadership and bad governance, political insecurity, lack of trained and qualified managers, lack of an administrative structure of development, and legislative oversight on economic policy development and implementation has resulted in mounting debt burdens by Africa that leading to poor investment of time and resources in paying off interests on these debts as opposed to investments in economic development.
Debt relief has seldom been utilized as a valid alternative in helping transform Africa’s economic situation, but, new studies are showing the benefits of debt relief in boosting the economic development outcome of African governments especially after the recent meeting of the G7 countries resulting in an agreement based on the foundation of the Millennium Goal Initiative for Africa to cancel completely the debt burden on some African countries, make recommendations for partial cancellation for others, and cancel the debt burden of some based on some pre-conditions.
Lack of sufficient economic growth and development, as well as social independence in Africa has been a big problem and a point of concern challenging economists and policy planners in developed countries like the U.S. where foreign aid commitments, a significant portion of their GDPs have been used as a tool to assess the effectiveness of their investments in third world countries growth and development, as well as measure the efficiency of their national policy initiatives regarding foreign aid. The question then is, should policy planners in the U.S. decide on foreign aid as a more beneficial tool to economic development in Africa or offer debt relief as a better option in enhancing our economic benefits towards economic development investment in Africa?
The Millennium Development Initiative, a proposal agreement between the developing countries and the developed countries initiated a set of bold goals that is recommended for implementation for Africa to lift it from a third world ranking to a global leader. These goals are to eradicate extreme hunger and poverty; achieve universal primary education; promote gender equality and empower women; reduce child mortality; improve maternal health; combat HIV/AIDS, Malaria, and other diseases; ensure environmental sustainability; and develop a global partnership for development.
To meet these noble goals, the U.S. has a major part to play to ensure they get the optimal return on their aid or relief by requiring and recommending responsible and effective leadership from Africa, efficient and qualified managers, empowerment and active participation of citizens in the decision process, efficient and productive projects and programs for development, as well as the development, implementation, and enforcement of proper rules and regulations to ensure transparent and accountable system of governance as a tool to evaluate the effectiveness and cost benefit advantage of their foreign aid or relief.
Foreign aid after debt relief is necessary to sustain the growth and development of Africa but policy administrators must put conditions that are flexible and fair, not harsh and impossible to ensure that governments’ investments yield positive.
African governments have a huge part to play to be responsible, accountable, effective, efficient, and economical with their resources and talent.
U.S. government must work with African governments hand in hand in knowledge transfer, technology advancement, poverty reduction, health service administration, democratic government development, investment in human potential and capital, independent resources development, and trade.
In order to initiate foreign aid in the future, corruption and good governance, accountability and transparency, promotion of Peace and Security at the highest level through preventive measures, identifying best practices, freezing foreign accounts of corrupt governments, confiscation of fraudulent assets, and repatriation must be enforced by the donors and recipients. Also, some foreign aid should come in the form of grants not loans to boost investment and return in value.
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