Running head: THE ROLE OF INTERNATIONAL AID IN AFRICA

The Role of International Aid Politics in Africa, Is it Helping or Hurting progress in Africa on Development, or Both. Ahmed Ali Azeem Bari Faraz Faisal Fatima Syed Hiba Kamran Syed Sameer Rehman Usama Nasir Ziad Bashir Lahore School of Economics Section E June 4, 2013 Sir Faisal Yaqoob

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA Abstract

This paper aims to provide an overview of African economy in terms of the current and past issues they are facing with regard to foreign assistance from developed economies. It focuses on the development it had made in Africa through policies being adopted by government through the foreign aid. The thesis for our research paper would be effects of foreign aid on the development of Africa. Moreover, it will identify the reasons for the failures of low level of gross domestic product, increasing poverty along with high inflow of foreign aid and much more. In addition, it shall enable us to have an idea of effects of massive grants flowing into Africa and ending up going nowhere. At the same time, the thesis will also bring to surface some of the main issues in Domestic Policies that call for some serious attention and intervention from the government. Some specialists allege that aid has bloated bureaucracies, bring about bad governments, supplement the elite in relatively poor countries, or get wasted. By the end of this paper some recommendations are been suggested to uplift the downward trend of growth in African economies. The reasons for failure of foreign aid and the crisis African economy are facing through aid dependence are discussed. Also, we have highlighted the factors that influence aid usefulness followed by the relationship between foreign aid and development. Lastly, policies are being recommended for the effectiveness of foreign aid along with a general conclusion drawn after analyzing the situation.

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA

The role of International Aid Politics in Africa, Is it Helping or Hurting progress in Africa on Development, or Both Introduction Africa is the world second largest continent with second largest population after Asia. African nations are considered to have a very low level of income per captia and a recent statistics from the United Nation shows that 22 out of 24 nations has been marked as Low Human Development. Moreover due to high level of population growth and declining trend in income per captia there is huge influx of capital inflow in Africa in the form of foreign assistance around the global especially from the developed economies. There basic aim is to help the under developed African economies to overcome their problems and recent crisis. This paper aims to provide an explanation and relationship of foreign aid and development in Africa with help of case studies and their likely outcomes. Many nations of Africa have GDP per capita of less than $200 per year, with majority of population living on much less than that. Moreover, Africa's income share has been dropping consistently over the past century. Besides this, I will do an in depth analysis of the policies being adopted by the Africa in the past and recent years and critically examine their findings. This paper would further highlight both the drawbacks and positive aspects of foreign aid and discus the major reason and background besides every approach. The most alarming fact is though the level of foreign aid is increasing every year in the African economies but their destinies dont change much because they still lag behind in every economic as well as social aspect. From 60 years more than $1 trillion of development aid has been given from rich countries to Africa. But still real per-capita income of Africa today is lower than it used to be in the 1970s, and over 350 million people that

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accounts for more than 60% of the population is living on less than one dollar a day, a figure that has doubled in past two decades. As in comparison to the past two decades the real per captia has decreased rather than having a positive increase. The most important yet most obvious issue raised regarding aid is its links to uncontrolled corruption. The foreign aid flows into Africa destined to help poor African economy and its population end up going into the bank accounts of the bureaucrats in the form of donor funded NGOs and poor country governments. This suggests that African problems cannot only be resolved through foreign assistance but other aspects also need to be address. It has been estimated in the Wall Street Journal that western economies has nearly spent $50 billion yearly and $60 trillion has been provided in past 60 years in Africa in the form of aid but yet it is deprived of basic infrastructure, level of income and standard of living. Due to this, some states like Somalia have been collapsed. Who gives aid to Africa and why? In history aid is usually given as bilateral support from one country to the other. Donors at times also give aid indirectly as multilateral assistance, which combine resources together from more than one donor. Major multilateral institutions that provide the assistance include the International Monetary Fund and the World Bank and several United Nations agencies. Australia is one of the largest donors of aid to Africa. Australian Government gave a development assistance to Africa of around $1652 million (Smith 2010a), which was 40 percent more than the previous year. In addition to this the Australian government is determined to give further $346.9 million over the period of next four years (AudAID 2010a).Most countries of Africa i.e. Tanzania are counted as the poorest countries in the world. Many countries of Africa previously had fine education and health systems but unfortunately economic mismanagement and over-

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borrowing has resulted the country trap into severe debt. The war that took between Eritrea and Ethiopia 1998-2000 caused the lives of thousands, damage of infrastructure and the further danger to life from land mines. Famine has been a constant threat to Africa that leads to first word countries providing aid in times of crisis. From a more practical prospective, Africa is very rich as far as natural resources are concerned. There are vital economic opportunities in resource sector such as mining. And providing bilateral aid to particular African countries can be very advantageous for the donor country in terms of commercial interests. From a typically political point of view growing Official development assistance to parts of Africa can be Australias strategy for profound appointment because continuing a policy of benevolent neglect towards a quarter of the worlds countries is no longer enough to meet Australias long term national interests (Ungerer 2009). Reasons of failure of aid in Africa Overall, it has been generally viewed that foreign aid is short term rather than a long-term solution for the band-aid problems of Africa as this aid doesnt particularly aim to have a structural transformation to change into an independent developed economy. It could be only made effective if the donor countries plan some long term projects such as in telecommunications, highways and power plants. In the past and even in recent year many theorists such as Amin, Peter Bauer and Andre Frank argued that global economic structure is held responsible for under development in countries like Africa. Most recently Parh(2002) acknowledge the fact that Africa itself should be held responsible for its weak economy due to terrible dictatorships and practices such as corruption hence the problem is a mixture of both internal and external affairs whereas Calderisi gives a different point of view. According to him

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA African economy has inherited problems thus it cannot blame globalization and international trade. The root problem of all the issues are the same as donor countries are inefficient in

providing a proper guideline for government of Africa that how, where and in which sector it is best to allocate the aid. As the donor countries are much aware that there is high level of corruption, cultures issues and political problems but unable to guide them where there are going wrong. Thus strict foreign aid policies should be adopted and should focus on five serious countries, namely, Uganda, Ghana, Mozambique, Tanzania and Mali. Moreover, a Zambian economist wrote in her new book, Dead Aid: Why Aid is Not Working and How There is Another Way for Africa, and suggest that foreign aid is an unmitigated political, economic and humanitarian disaster. Furthermore, in New York Times it has been stated that foreign investments, trade and microfinance opportunities can help to provide a better hope for African economy. Kosack (2003) discovered that aid has positive effects on Human Development Indicator growth but only in democratic countries. He estimated that aid will definitely have an adverse effect on HDI growth in dictatorship (p6).Foreign aid is meant to promote development in lowincome states. However it is proved of doing the opposite in case of Africa. Aid is very volatile and its volatility grows with the degree of aid dependence (Bulir and Hamann, 2001). The extent of dependency on aid is growing from the past two decades in Africa. In the period 198089, there were total of 25 African countries in the list of aid-dependent countries. We can see the adverse effects of this dependence under an old saying we cannot bite the fingers that feed us, leaders of recipient countries are unable to converse when unwanted goods come out to their markets. It give the impression that aid is not destined to make sure that recipients become self-

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sufficient since if it is the case; influential states can no more show off about who is giving more than other. We can deduce from here that because aid is not a joystick through which donor can maneuver political outcomes or macroeconomics (Edgren, 2002) Sub-Saharan Africa is referred as a classic example of the vicious political effects of aid. Africa today is very much aid dependent because hardly a small number of its states can bear its routine functions or provide basic services without external funding. Table1 below clearly shows that Sub-Saharan Africas receipts of aid amounts $ 26 billion i.e. $ 35.8 per capita which is 5.3% of GNI. Table1. Official Aid receipts by region, 2004 Billion USD $ Sub-Saharan Africa South Asia East Asia Central Asia North Africa Caribbean 26.0 6.8 6.9 11.9 10.5 6.9 Percent of GNI 5.3 0.8 0.3 0.7 1.7 0.4 $ per person 35.8 4.7 3.7 25.1 35.0 12.6 Source: World Development Indicators Dambisa Moyo, in her article on African Aid mentioned that despite the fact that Africa is receiving enormous grants from other countries but the question is are they really helping Africa? She basically raised the point that in Africa, thus far history exhibits that aid has made the poor poorer, and has slowed down the growth. She added that the dangerous aid tradition has made African countries debt-laden, more defenseless in currency market, more inflation-

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prone, and more unappealing to higher-worth investment. It's enlarged the threat of unrest and civil conflict. Aid undoubtedly is an utter economic, political and social disaster. According to her, even after 1990s firm debt-relief campaigns, The African countries still pay around $20 billion in repayments of their debt per annum, a harsh reminder that aid is not free. To keep things going, debt has to be repaid which is done at the expense of health care and education which are necessities. She also mentioned that in May 2004, Jeffrey Winters, a professor at Northwestern University professor argued in a trial before U.S. Senate Committee, that the World Bank had contributed in the corruption of $100 billion of its loan funds projected for development. In 2002, the African Union made an estimate that corruption was costing Africa $150 billion each year, as foreign donors were innocently assuming a straightforward fact that aid money was unintentionally fueling graft. With almost no strings attached, it has been all too troublefree for the funds to be used for any purpose. Moyo makes it clear in her article that the corruption issue is one big problem for Africa when it comes to foreign aids effectiveness. The government could not find a much easier and more transparent way of raising development finance because they got stuck in apparently so simple world of aid. This aid culture supports African government in a sense that they can simply pick up phone and ask donor countries for next transfer. It is no surprise that across Africa, more than 70% of the public finance comes from foreign aid. In Ethiopia, aid comprises of more than 90% of the government budget, and no wonder only 2% of the Ethiopias population has mobile phones.

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA Another moral hazard is to take no notice of the human resources set out directly by foreign donors in Africa. Emigrants help run many foreign aid projects. According to a UN survey, 40,000 international technical recruits are inhabitant in Africa. Development and democracy aid Development aid was more effective than democracy aid, at encouraging democratic evolution during the 1990s in African countries. The most successful result observed was through the work out of force by donors who more and more began to put together political conditionalitys to development aid. Factors that increased the efficiency of leverage were a

countrys extent of dependence on aid, donors coordination level, and the simultaneous survival of domestic dissatisfaction. Democracy and Development aid also display dissimilar results on main clauses of consolidation, including the escaping of democratic corrosion and the improvement of answerability. With respect to democratic corrosion, donors threatened to cut the aid in various occasions where media liberty has been reduced. Still, donors are conflicting in timing and the scale of their involvement, aiming for greater understanding why they decide to use leverage in only few countries. Development support can have some accidental and roundabout effects on party systems, mainly by increasing benefits for the incumbent.

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA Democracy Aid to Sub-Saharan African by DAC and Multilateral Donors

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1600

1400

1200

1000

800

600

Democracy Aid as share of total Aid (%)

400 Total, constant 2009 USD (millions) 200

0 1995 1997 1999 2001 2003 2005 2007 2009

Fig.1

African Economy crisis of aid dependence Apart from the failures of foreign aid, it is viewed that African economy are heavily dependent on the foreign aid as without it nearly half of the yearly budget issues cannot get resolved. For example, in 1992 foreign aid resulted to be 12.4% of gross national product (GNP) and 50% of total imports. (Ampaw, 2000). The development assistance and foreign aid has led to dependency in African society as they are becoming lazy, mindless and forming of various

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cultures across the society. Basically, the people of Africa have lost faith in them and actually the will to achieve their desirable goals. For instance an economy can only develop if they have the willingness, ability and knowledge with regard to it. But, African nation seems to be a mere puppet of Western economies to tailor their needs. Moreover, modernization school of thought suggests that historical background of Africa is not a result of current situation. Moreover, even if there is a logical implementation of national economic policies in Africa in accordance with structural adjustments program will not drive it out of debt rapidly. It is a long process and requires patience and stability. Even though such long term loans and aid will further worsen the condition. It has been observed that Official Development Assistance has been declined since the 1980s as the aid that aims to reduce poverty in Africa is now working on the global issues but donors still represent a positive trend in aid. Due to armed conflicts in the places like Congo, Sumalia, Angolo, Ruwanda, Burndi and Sudan the development is adversely affected. As the flood gates of foreign assistance will keep on increasing yearly it will not show a long term impact. The strategy of Machiavellian Prince can be adopted to address the unresolved complex problems of Africa. We cannot say that democracy is key for the progress neither we can predict where these countries would have been without dictatorship. For example China being the third largest world economy but still it experience Human Rights violations and high level of inequality. So there is a doubtful conclusion about dictators as one individual cannot drive billion people out of poverty, corruption, inequality and low gross domestic product. Hence, it requires a separation of

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA needs and wants to make aid influence effective and lead the economy on the road of development. Factors that influence aid usefulness in Africa

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It has been argued in IMF seminar in 1995 that even though the destiny of Africa lies in their hand but still they need international foreign assistance to overcome the macro-economic imbalances. The encouragement and desire from the donor countries can positively integrate the economy as it beacons the hope of ownership and control. Furthermore, World Bank six guiding principles could also been taken in account such as client orientation, cost benefit analysis, result analysis, partnership agreements and allocation of financial resources. Moreover, the donor countries should also consider certain things to make aid more effective such as an overview of public expenditure and investments, fiscal and monetary programs and most importantly there must be counter check for transparency. Even after the ten years of implementation of policies being suggested by IMF it doesnt show a positive result. But, it further makes the situation complex as whether foreign aid should be increased or decreased in Africa. Thus, policies mentioned above requires long run time frame to be useful to present an increasing trend on real growth due to aid. However, if there is efficient and effective governance, competent bureaucracies and honesty rather than corruption then problems might get resolved in Africa. To make a develop African economy a strict and an honest ruler is required as it has been observed in the past that many African leaders were selfish in nature and accumulate the state wealth for the sake of their own luxurious life styles and comfort. Therefore, they require foreign aid from wealthy nations. Hence there must be proper check and accountability. As there so many international organizations such as United Nations, World Trade Organizations and IMF who support Africa

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through foreign aid they could be more effective if they all make a collaborative decisions on how to allocate the aid in Africa such which region and department requires greater attention. Besides this, foreign aid is not the only concern for underdevelopment but there are low of savings and investment as well along with high level of population growth. Moreover, countries like Bostwana with 1.9 million population and 1.2% annual growth rate has moved towards the strong healthy economy even though it is in worse condition then African economies thus a reliable dictatorship is needed with an eager to resolve the issues. Huge number of African economy could easily develop if they work at fullest to provide quality results. Moreover, Africa is enriched with resources it just needs to exploit them and make effective allocation of resources. Thus, a well-organized and equipped labor force can bring a remarkable change. African citizens require a driving force to wake them from awful effects of foreign aid in their economy. Relationship between foreign aid and development in Africa Now, the most important question is whether foreign assistance is of any help for Africa. Even, if it does then how it is measured either in terms of GDP growth rates, poverty level or basic standard of living. But, unfortunately it is difficult to answer this question as Rostow (1990) sees the foreign assistance the the external intrusion by more advanced societies for the sake of development. Apart from this, Hayter (1971) gives different point of view according to him foreign aid is a form of imperialism which cannot result a success of an economy. Foreign support in form of aid can only be helpful if it is provided in sound and healthy environment. A paper by Burnside and Dollar( 1997) used a sample of 56 countries and four time frames which shows when aid is coincided with good policies it resulted a positive impact on growth rates.

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But every individual has different approach as some argued that there is no significant correlation among policies and development as some poor countries are unable to meet the criteria. However, Sachs (2005) thinks that rising level of aid has the possibility to end the poverty by 2025. But it is in reality difficult to draw down the conclusion that aid is always useful for recipients as many countries like Africa are still facing huge amount of foreign aid but still lie below the poverty line. So therefore, it is important to consider the cultural values for the development of a nation as Africa is divided among various cross cultural societies. According to Rostow if Africa wants to progress then it requires modernizing their society by giving up their traditional cultural values and bring forth the euro centric ideology. As a comparison between Ghana and South Korea in 1960s both the countries where developing but in the span of thirty years South Korea has experienced rapid growth due to the strong cultural values but Ghana progress is a still a question despite the foreign assistance. Policies recommendations for African Economy To lead African economy towards development it needs well organized civil services but they are mostly run by bureaucrats so it should be corruption free. In Cameroon, it takes 426 days for a potential investor to get a business license which involves 15 steps which is clearly a discouragement. In this case policy of South Korea should be adopted where it requires 17 days (10 steps) to get such a license. Moreover, due to fertile African land it should grow food in their respective countries rather than taking food aid to create employment opportunities for local farmers. Furthermore, there is a problem of Dutch Disease it leads home prices to increase due to huge inflow of foreign aid which adversely affect the home country exports by forcing home prices to be high and thus making their goods relatively expensive and hence

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uncompetitive for export in international market. Aid has similar effects. Large amount of aid in dollar cause the domestic currency to build up against foreign currencies. This surely is disastrous for employment sector because jobs get affected in the poor country where people's source of revenue depends largely on being more competitive in the international market. Thus, employment is not generated due to high level of competition in the international market. To overcome this problem of aid-led inflation African economy should issue bonds to create surplus from the money injected in economy through foreign aid. Lets talk about example of Uganda her, in 2005 Uganda was required to issue these bonds to clean up surplus liquidity to the air of $700 million. The payments of interests on this were alone shocking $110 million, to be paid yearly. Africa is unstable due to civil wars since 1996 thus an effective military and law and order should prevail in the economy. Moreover, Africa should move towards free market economy to earn high amounts of profit and low prices due to variety of products and exports to foreign market. In a related streak has been the approach to food-aid, which traditionally has not done much to support African farmers. Under the support of the U.S. Food for Peace program, every year millions and millions of dollars are spent on American-grown food which is shipped to different parts of the world. One doubt how a structure of filling foreign marketplace with American food, which drive local farmers out of the business, in fact helps in betterment of Africa. An even better policy would be to utilize aid money to purchase food from local farmers, and then allocate or distribute that food to the needy local citizens.

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The dishonor linked with countries depending on aid should also not be ignored. Its the unusual financier that risks money in such a country which is unable to stand on its own feet and handle its own affairs in a controlled manner. Africa can be said to as the most unsound continent of the world, overwhelmed by civil trouble and war. 11 countries have been entangled in civil wars since 1996. According to the SIPRI (Stockholm International Peace Research Institute), Africa in the 1990s had more wars than the rest of the world combined. Although, Zambia, has not had the ill-fated practice of an utter civil war, Civil clashes are most of the times encouraged by the perception that by grabbing the seat of power, the victor gets almost unregulated right of entry to the package of aid that comes with it. There have been major three political mayhems across the Africa i.e. in Mauritania, Guinea and Guinea Bissau (each one of which runs on foreign aid). Madagascar's government was removing from power in a revolution recently. The constant political instability across the continent serve up as an aide memoire that aid which is called for efforts to forcefully feed democracy to economies suffering from uncontrollable poverty and rigid economic prospects remain insecurely helpless and defenseless. Long-term political accomplishment can only be achieved once a firm and solid economic course has been established. Besides this, a book written by Calderisi named as The Trouble with Africa: Why Aid Isnt Working, is a useful tool to critically assess the Africa in past and present days. The book provides an insight that the current civil war on the religious basis should be controlled as it is due to poverty, lack of education and health services. Moreover at the end of book ten recommendations are being provided for the effectiveness of foreign aid in Africa. Basically he

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suggests throughout his book that new ideas, leaders, approaches, access to latest technologies are need rather than inflow of aid. In his opinion foreign aid further slows down the process of political changes in Africa. Thus rather than foreign aid there is dire need of domestic structural transformation to gather the nation in one unit and to end inequality, war on terrorism and slavery. Conclusion In my opinion, the foreign aid in Africa has generally hurt the economy rather than helping them to achieve their goals. The foreign assistance has made the African nation dependent and mindless. Due to heavy reliance of African economy on foreign trade has resulted in African economy being much more dependent on this help by donor countries. It seems that now its getting difficult for African economy to prosper on their own without the inflow of heavy financial reserves from countries from around the world. Hence, it can be well concluded that African economies do need foreign aid but in a controlled way through a structure of proper measures and effective policies along with clearness and counter check from the donor countries. They have lost the hope for better future with ever increasing poverty level, downward trend in real GDP per captia, lesser Purchasing Power Parity, low standard of living, black marketing, health issues, weak courts and law and order. Despite the fact that population is increasing every year but the large labor force is unemployed and unable to reap the fruitful result for the economy and has failed to produce efficient labor force and this is further causing the problem of unemployment Africa. Hence, it is safe to conclude that African economies need foreign aid but through proper channel of effective policies, transparency and counter check from the donor countries. A strong democratic government with efficient policies is required to exploit the natural resources, to eradicate basic social, cultural, ethical, development and religious issues.

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA Moreover, African economies have made progress in education and health but there are so

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minute to discuss. Apart from this, a freedom of expression and liberty should be granted to end the trend of slavery from under develop nations like Africa. For instance, the international organizations should plan certain short term policies in the form of aid to help Africa achieve macroeconomic objectives in the long run. Lastly, I have discussed certain policy recommendations in my paper and if they are implemented then there is hope of success.

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA References

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Academia edu.(2009), Foreign aid and development in Africa: What the literature says and what the reality is, http://ualberta.academia.edu/NathanAndrews/Papers/127276/Foreign_aid_and_developm ent_in_Africa_What_the_literature_says_and_what_the_reality_is Aercafrica. (2009), Foreign Aid, Accountability and Service Delivery in Africa, http://www.aercafrica.org/documents/isd_workingpapers/SamuelWangweForeignAidAcc ountabilityServiceDelivery.pdf Clement Lecture Series. (2005), Can Foreign Aid save Africa, http://www.csbsju.edu/Documents/Clemens%20Lecture/Clemens2005.pdf Council on Foreign Relations. (2012), Islam and Politics, http://www.cfr.org/region/143/africa.html International Organization. (2001), Foreign Aid and Statehood in Africa, http://qed.econ.queensu.ca/pub/faculty/lloyd-ellis/econ835/readings/statehood.pdf JEL Classifications. (2007), The Effect of Foreign Aid on Economic Growth in Developing Countries, http://www.aabri.com/OC09manuscripts/OC09003.pdf New York University of Law. (2007), Foreign Aid to Africa: A Hollow Hope, http://www.law.nyu.edu/ecm_dlv/groups/public/@nyu_law_website__journals__journal_ Religion Online. (2000), Foreign Aid: Does It Harm or Help, http://www.religion-online.org/showarticle.asp?title=2035 The Wall Street Journal (2009). Why Foreign Aid Is Hurting Africa. http://online.wsj.com/article/SB123758895999200083.html

THE ROLE OF INTERNATIONAL AID POLITICS IN AFRICA UCD School of Economics. (2010), The Effects of Foreign Aid in Sub Saharan Africa, http://www.edgepage.net/jamb2010/papers/The%20Effects%20of%20Foreign%20Aid.pdf United Nations University. (2011), Foreign aid and democracy in Africa, http://unu.edu/articles/development-governance/foreign-aid-and-democracy-in-africa World Views Guide. (1997), Emergency Relief Aid Meeting whose needs, http://worldviews.igc.org/awpguide/foodaid.html

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Moyo, D. (2009, March 21). Why Foreign Aid Is Hurting Africa. Retrieved April 8, 2012 from http://online.wsj.com/article/SB123758895999200083.html Resnick, D. (2011, March 3). Foreign aid and democracy in Africa, Foreign aid and democracy in Africa Retrieved April 8, 2012 from http://unu.edu/articles/development-governance/foreign-aid-and-democracy-in-africa Arthur A. Goldsmith (2001). Arthur A. GoldsmithForeign Aid and Statehood in Africa. London: IO Foundation. p123-148. Dr. William Easterly (2005). Can foreign Aid save Africa. New York: Saint Johns University.22. World Bank, Can Africa Claim the 21st Centuary? Washington D.C., 2000. Sachs, Jeffrey D. The End of Poverty: Economic Possibilities for our Time, New York: The Penguin Press, 2005. Simone Dietrich and Joseph Wright. (February 2012). WP/020 Foreign Aid and Democratic Development in Africa. WIDER Working Paper. 2012/20 (1), p34-37. Samuel Wangwe (2007). Foreign Aid, Accountablity and Service Delivery Africa. Tanzania: Tanz Press. p17-18.

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Azam, Jean-Paul and Serphin Fauda. The Economic Impact of Aid on Recepients, Framework. Paper for AERC Project on Aid Dependence, Nairobi, 1998.

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