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African History 7.4 The Role of International Aid 3 Views
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Description:
We wish we could say that international financial aid always came from altruistic motivations… but would you believe us? Didn’t think so.
Transcript
- 00:04
The rich helping the poor. [People giving steet beggers money]
- 00:06
Sounds simple and good.
- 00:08
Like homemade vanilla ice cream.
- 00:10
But when we’re talkin’ rich countries sending aid to developing economies in Africa,
- 00:15
the ice cream flavor gets complicated.
Full Transcript
- 00:17
Of course, things might be a little less complicated now than they were during the Cold War.
- 00:21
Back then, aid almost always came with a bundle of expectations for a government to support
- 00:26
the United States or the Soviet Union.
- 00:29
If an African state tried to go back on whatever promises they made to their super powered
- 00:33
benefactors, there’d be the devil to pay. [Man with devil horns knocking on Africa's door]
- 00:35
These days, things are little bit less ideological.
- 00:38
A lot of times, Western governments give aid in the form of debt forgiveness. [Government hands over 'certificate of debt forgiveness' to Africa]
- 00:42
This is when Western countries pay back African debts to Western central banks.
- 00:47
This helps African countries dial down their debt-to-GDP ratio, which makes all those neoliberalist
- 00:51
investors text happy emoticons to everyone they know. [Phone with smiley emotes appearing on the screen]
- 00:56
Other countries are a little pushier.
- 00:57
We’re lookin’ at you China and Iran.
- 00:59
When these countries send aid to Africa, there are definite strings attached.
- 01:04
Like the expectation that Iranian and Chinese companies be allowed to build factories there on favorable terms. [Big factories producing smoke]
- 01:10
Most people know that a bunch of foreign aid is pumped into Africa every year.
- 01:13
But it’s not quite as much as we might think.
- 01:15
Roughly 100 billion bucks come from the West…
- 01:18
About 150 billion from China…
- 01:20
And around 20 billion from other countries in the Middle East and Asia.
- 01:23
And yeah, all those billions sound like a lot, but it only makes up about 13% of Africa's
- 01:27
total GDP, which is actually 2 trillion dollars.
- 01:30
Of course, that’s an important 13%.
- 01:33
Imagine living with 13% less allowance.
- 01:36
That might mean nixing Friday night’s movie marathon at the local cinema… [Man with empty wallet walks away from the Theater]
- 01:39
Or even having to buy the iPhone 5 when all of your friends have the iPhone 97….that's
- 01:43
the generation they're on now, right?
- 01:45
Admittedly, this would not be cool.
- 01:47
But imagine if cutting 13% slashed stuff like basic health services and maintaining roads
- 01:51
and power grids.
- 01:53
Without that 13%, the developing nations of Africa might develop a lot slower. [Africa in a baby cot]
- 01:58
The United Nations also has skin in the aid game.
- 02:00
The UN founded the International Monetary Fund, an agency that provides low-interest
- 02:06
loans to developing governments.
- 02:08
However, the IMF can get a little pushy.
- 02:11
Much like the Lannisters, once you take the IMF's money, you're in its pocket.
- 02:15
The IMF has come under fire for strong-arming its borrowers into adopting neoliberal reforms.
- 02:21
And sometimes these reforms hurt a lot of people in the indebted country. ['Reform hammer' bashes governments into the ground]
- 02:24
In Tanzania, for example, the water supply of the Dar es Salaam region
- 02:29
was privatized and sold to a German company.
- 02:32
What did the Germans do with that precious substance that’s absolutely necessary for
- 02:36
life?
- 02:37
Well they jacked up the prices, that's what.
- 02:38
Which made the IMF eerily similar to the villain of a recent Bond movie… [Man with metal teeth]
- 02:42
So, yup, aid and loans from richer countries can definitely help developing African states
- 02:47
But a lot of Africans are mega-suspicious of the agendas of foreign countries and organizations.
- 02:53
Word to the wise: when an ice cream flavor gets this complicated, you never know what
- 02:56
might be lurking in the mix. [Cockroach crawling around in ice cream]
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