Dead Aid
Dambisa Moyo, a Zambian-born economist known for her incisive analysis of macroeconomics and global affairs, holds a PhD in economics from Oxford University and a master’s degree from Harvard University. In her provocative book Dead Aid: Why Aid Is Not Working and How There Is Another Way for Africa (2009), Moyo challenges the conventional wisdom surrounding development aid. She critically examines how the original goals of foreign aid—sustainable economic growth and poverty alleviation—have failed.
Instead, she argues, decades of aid have entrenched corruption and undermined governance across much of Africa. Moyo focuses on aid in the form of loans—particularly from institutions like the World Bank and the IMF—rather than direct grants, humanitarian or emergency aid, and charity-based aid. She critiques development organizations for measuring success by the volume of aid disbursed rather than by its real-world impact. Her core argument calls for a decisive shift away from the aid-dependent model toward an aid-free future.
One of the more nuanced ideas in Dead Aid is Moyo’s discussion of “positive” corruption. She contrasts Africa’s stagnation with the rapid growth of several Asian countries that, despite high levels of perceived corruption, successfully transitioned from commodity exports to industrial manufacturing economies. Moyo explains how foreign aid discourages investment in export sectors, reduces domestic savings rates, and ultimately hinders sustainable growth. As an alternative, she advocates for African countries to build credibility in global capital markets, develop domestic bond markets, and raise capital independently.
In the chapter “Let’s Trade,” Moyo promotes greater intra-African and international trade. She argues that regardless of Africa’s growing potential, the terms of trade with the West remain fundamentally unequal—and are likely to remain so. This imbalance is evident in the tariff regimes African exports continue to face in Western markets. If the West is serious about supporting African development, Moyo contends, the conversation should center on fair trade—not more aid. She also contrasts this with China’s approach in Africa, which she views as more transactional and outcome-driven. While not without controversy, China’s investments have brought infrastructure and jobs—at least in the short term—because they demand clear returns and results.
Dead Aid emphasizes the importance of accountable governance and legal transparency. Moyo argues for strong legal frameworks that would allow Africans to use land as collateral, enabling private sector growth and entrepreneurship. Accountability, she insists, is central to economic development: without it—and without channels to mobilize risk capital for small and medium-sized enterprises—sustained success is unlikely. In the chapter “Banking on the Unbankable,” she explores how microfinance and small-scale banking can empower low-income populations and generate enterprise. She also highlights remittances as a vital but often overlooked source of capital for many African economies.
The conclusion of Dead Aid is unapologetic and confrontational: it is time to stop pretending that the current aid-based development model will deliver sustainable economic growth for the world’s poorest countries. It will not. The book compels readers to reflect more deeply and pursue further inquiry on the future of development.
