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Sunday, February 4, 2018

European influence and development aid

European influence and development aid

European colonial powers remained active in many nations post-independence and, still today, France retains close diplomatic ties with many former colonies. The U.S., largely unburdened by the "former colonial power" stigma, has long been active in promoting conflict resolution, human rights, and providing development aid and emergency assistance.

While development aid rarely exceeds 1% of the donor countries' budgets, some African countries are or have in the past been dependent on aid money and credits from countries and international institutions such as the World Bank. While there has been a change in focus from large-scale projects such as dams and highways to more local initiatives such as rural electrification or public transport for individual cities, the topic remains controversial and some African voices have even called for an end to development aid altogether.

Another problem with the World Bank credits is that new (democratic) governments often have to pay back old credits that their (authoritarian, kleptocratic) predecessor have taken out and wasted or outright embezzled, thus forcing their political agenda to conform to the wishes of the World Bank in large part instead of their own people. The question whether some or all of those "onerous loans" should or could be forgiven is another contentious issue between the (mostly European and North American) creditor nations and the African debtors. Another source of money for many people as well as countries is so-called "remittances" — that is, money that emigrants from African countries send back to their friends and relatives in their former home countries.

While this has sometimes helped grow local economies and bring direly needed investment, the extreme dependence of some areas on this source of revenue has created a great deal of economic problems. As a traveller you will probably notice that Western Union and similar services are available almost ubiquitously, as they are frequently used for the purpose of receiving remittances

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