Foreign Aid and the Paradox of Development
Borne out of the author’s pessimism about the impact of foreign aid in the transformation of the Nigerian economy, Atim contends that even the theories that are supposed to provide a guide for the development of Third World countries have rather placed them in a dilemma. The author therefore submits by stating, in chapter one, […]
Borne out of the author’s pessimism about the impact of foreign aid in the transformation of the Nigerian economy, Atim contends that even the theories that are supposed to provide a guide for the development of Third World countries have rather placed them in a dilemma. The author therefore submits by stating, in chapter one, that “the greatest motivating factor for the consideration of the work is grounded in the theory that knowledge is inexhaustible and always in a state of motion and change” (P. 5)
The main thrust of chapter two is the critique of the capitalist and socialist philosophy of foreign aid in the deep-seated crisis of development. From the point of view of the Pearson Commission on Foreign Aid and Development, it suggested that “developing countries should have access to foreign aid in order for them to acquire a 6% growth rate of their GNP” (P. 9). It is not denying the fact that developing countries have access to foreign aid, what the author seems to be concerned about is the conviction that this foreign aid has and still will continue to worsen the economic woes of economies of Third World societies.
After a careful examination, Atim contend that the moribund state of economies of developing countries is as a result of the colonial legacy, the nature and character of the ruling class, the obnoxious monetary policies of industrialized societies, and the influence of industrialized societies in the world market. The book therefore states clearly that foreign aid is a rebirth of colonialism and as such has the potential of dislocating the economies of developing societies as evident under SAP with its attendant deleterious impact on the political economy of these countries.
In chapter 3 and 4, Tyodzua Atim explores the contending theories of development. He contends that African states are facing the challenges of development. The common feature of which include “disease, malnutrition and short life span”. The theoretical perspectives of development in chapter 3 and 4 therefore attempt giving explanations as to why some group of countries are developed while others are not, and how this problem can be solved. Taking a historical analysis, the UDT or dependency paradigm has argued that Third World societies are underdeveloped because of their relationship with the west. This school of thought debunks the occidental or Western views of African underdevelopment which characterized them as possessing attributes inimical to development, such as laziness, absence of the spirit of entrepreneurship, lack of capital and the survival of archaic institutions. The chapters argue that the West suggest more aid and closer ties of African states to them as the panacea for this problem of underdevelopment. However, Walter Rodney, a dependency scholar believes that “the idea of underdevelopment is a comparative one whose component expresses a particular relationship of exploitation i.e. the exploitation of one country by another” (P. 39). Atim in his subjectivism is seen to be arguing alongside the dependency theorist. He contends that “the current state of underdevelopment of Africa is as a result of the relationship that benefits one partner to the disadvantage of the other” (P. 73). The author has failed to acknowledge the position of the West on the problem of development in Africa. However, beautifully, the book acknowledges the inability or unwillingness on the part of the people to tackle their problems as a result of crisis in the implementation of theory-directives.
In chapter 5, the argument of the book is centred on the rationality of foreign aid to Third World countries from the occidental and oriental dichotomy. Here, Atim contends that foreign aid to African states and elsewhere in the developing world is necessitated by the desire of the power broker (socialist and capitalist blocs) to assert their hegemony in terms of political alignment, the scramble for colonies and the economic interest of the power blocs. This according to the author is designed to yield both short and long term benefits. The book explains further that “foreign aid can come in form of hard loans, soft loans or grants” (P. 78). The hard loan, which the author considers as attracting low or high interest rates, is what is considered as yet another rationality behind foreign aid. From this analysis, the author contends that foreign aid to African states and elsewhere in the developing world is not necessarily motivated by the desire to develop the economies of developing nations, but to achieve both political and economic interests of the donor countries.
One strong and unpardonable contradiction of the chapter is that what seems to be the conclusion stated by the author on P. 83 and 84 is not in consonance or does not reflect the content of the chapter. The conclusion is most suitable for chapter 4.
Atim’s contention in the sixth chapter is that there was a systematic development in Nigeria prior to imperialist interregnum. This systematic development was evident within the framework of socio-cultural and geographical affinity. The book explains the extent to which the country is incorporated into the world capitalist system. “The incorporation of Nigeria into the world capitalist system took three main dimensions” (P. 87). These dimensions are conceptualized by the chapter as the period of the free trade, the period of direct colonialism and the present forms of neo-colonialism. Atim believes that colonialism is responsible for the economic crisis that characterized Nigerian economy, quickly pointing to the emergence of local merchants, dependency i.e. financial, technological and trade dependence, as the resultant effects.
Furthermore, in chapter 7 Atim contends that the contemporary economic reform programmes in Nigeria are a reflection of the character of the state that is not people-oriented, undemocratic and corruption ridden. He therefore provides a road-map that is optical, conventional and orthodoxical in the philosophy of reforms. Taking the words of Tieyong Akpan, he posits that “reforms were necessary because they sought to adjust and correct mistakes and defects of a particular system” (P. 171). After a thorough examination of reform programmes that characterize Nigerian economy from 1960 to date, Atim surprisingly concludes that the reforms are characterized by the extra-territorial influence of capitalist institutions, corruption, anti-people, maddeningly unsystematic and inconsistent, insincere and discriminatory in nature. What the author seems to be saying is that the reform programmes in Nigeria since independence to date have been ill-conceived. Even the economic reform programmes of privatization, deregulation, capitalization of the Banking sector and NEEDS have been dismissed on grounds of “further enriching monopolism, widening the gap between the rich and the poor and increasing inflation and primitive accumulation” (P. 209). It is the belief of the author that this situation portends a threat to democratic sustainability in Nigeria. Atim therefore enjoins “Nigerians to brace up for the hard times ahead by rising up from slumber and by challenging agents of exploitation, dictatorship and fascism”. He believes that by so doing, Nigerians will be consoled by the sound beats of Condorcet who said:
“The time will come when the sun will shine only upon a world of freemen, who recognize no master except their reason; when tyrants and slaves, priests and their stupid or hypocritical tools will no longer exist except in history or on the stage (P. 214).
However, Atim has not told us what course of action(s) that will serve as a counter hegemonic force for the dethronement of the state dictatorship.
Chapter 8, which is the last, is dedicated to explaining the class character of Nigeria’s Fourth Republic. This scenario, as argued by the chapter, is exemplified in the indigenization policy which offers the few the opportunity against the vast majority. This reminds one of the concept of Karl Marx on the purpose of state when he said, “The state is the executive committee of the few who rule in their selfish interest to the detriment of the vast majority”. On this note, the author seems to argue that the reform policies including the Yar’Adua-Jonathan 7-Point Agenda have some jamboree arrangement beneath them, carefully orchestrated to deepen the socio-economic and political woes of Nigerians. The problems of revenue allocation, resource control are aspects of this machination. Borrowing from the words of Ake (1993), the author posits “there is no public realm, there is only a contested terrain where interest groups and communities go to fight for appropriation” (P. 301). Considering the event of the protracted illness and subsequent death of Yar’Adua, Atim contends that there is politics of tribalism, corruption, ideological somersault, partisan and primitive accumulation of capital. Despite the pessimistic view of Atim on the impacts of reforms in Nigeria, it must be noted that reforms are, indeed necessary and have contributed positively in redefining and re-directing Nigerian political economy.
“Foreign Aid and the Paradox of Development” is therefore a highly commendable book that provides the missing links in our understanding of the politics of foreign aid and its impact on the economies of the developing world.
One fundamental distinguishing attribute of the book is that the author has demystified the idea of Aid as an instrument of development in developing nations. He contends that “even though the Pearson Commission concerning Aid suggested that developing countries should have access to foreign aid in order for them to acquire a 6% growth rate of their GNP” (P. 9), experience has shown that though the developing world has full access to foreign aid, this has not transformed into their economic development, but rather stagnated their economies.
Another distinctive quality of the book is its clarity of expression and concise use of English coupled with editorial coordination.
However, there are minor incidents of exaggeration here and there. The first paragraph of the first chapter states that “The socio-economic and political structures in Third World countries are bedeviled, characteristically by mass ignorance, disease, malnutrition…..Those factors have remained fundamental aspects and excruciating factors of life in the entire developing world” (P.1). But it can be denied that the condition described here is not typical of all developing nations.
Furthermore, the author is rather too pessimistic about foreign aid. He has failed to see anything good in foreign aid in the development of the economies of Third World societies.
Also, there is the case of contradiction where the conclusion drawn by the author for chapter 5 (P. 83 and 84) does not reflect the content of the chapter, but appears much more suitable to chapter 4.
Despite of these shortcomings, it cannot be denied that the book has enhanced our understanding of the politics of foreign aid to the developing world under the guise of development.