WOMEN’S UNIVERSITY IN AFRICA
Addressing Gender Disparity and Fostering Equity in University Education
PGD Honours in Social Work
NAME OF STUDENT : Sikhangele Moyo
STUDENT NUMBER : W171033
COURSE AND COURSE CODE : Socio Economic Development
ASSIGNMENT QUESTION : Analyse the impact of Foreign Aid on Socio-economic
development of Africa
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NAME OF LECTURER : Dr Chinoputsa
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LECTURER’S SIGNATURE: ............................................
The impact of foreign aid on Africa's socio-economic development is a complex and
multifaceted issue. On one hand, foreign aid has been significant in supporting economic
growth, reducing poverty, and improving living standards in many African countries.
However, it has been criticized for creating dependency syndrome, undermining local
institutions and perpetuating corruption in African countries. Unfortunately, as of 20 January
2025, the United States Government imposed a funding pause on USAID, affecting
humanitarian programs and projects run by nonprofit organization. This essay will thoroughly
analyze both the negative and positive impact of Foreign aid to African countries, providing
current examples.
Socio-economic development is a multidimensional process that aims to improve the quality
of life of individuals and communities by increasing their access to resources, services, and
opportunities, while also promoting social justice, equity, and human rights (United Nations
Development Programme, 2020). According to Radelet (2006), foreign aid refers to the
provision of resources, whether monetary or in-kind, from one country to another, with the
intention of promoting economic development, alleviating poverty, or addressing
humanitarian needs. According to Mkandawire (2015), Africa is a third world continent
facing complex development challenges, including poverty, inequality and poor access to
health care, despite the challenges, Africa is a rapidly growing economic region, with many
countries experiencing significant economic growth, urbanization, and industrialization.
One of the major positive impact imposed by foreign aid is humanitarian assistance through
World Food Programme which has led to the attainment of SDG 2by alleviating food
insecurity and preventing malnutrition in African Countries (Moyo, 2009). For example
Zimbabwe’s DSD’s FDMS program is funded by foreign aid, this food aid programme is a
rapid response to the damage caused by the ElNino induced drought which left a vast number
of Zimbabweans vulnerable to hunger and malnutrition.
Foreign aid has demonstrably contributed to socioeconomic progress is in the realm of health.
Initiatives focused on improving health care infrastructure, disease prevention and treatment,
particularly in combating HIV/AIDS, malaria, and tuberculosis, have shown considerable
success (Bloom et al., 2015). These programs, often funded by bilateral and multilateral
donors for example, PEPFAR and NAC, have improved life expectancy and reduced
mortality rates, contributing to enhanced human capital and the achievement of SDG 3.
However, the effectiveness of these health interventions is often contingent upon strong
governance and robust healthcare systems within recipient countries, a factor that
significantly influences the overall outcome (Easterly, 2006). As a result of USAID
withdrawing its fund on African countries, the dependency created by such aid has partially
hindered the development of sustainable, locally-funded healthcare systems.
Furthermore, foreign aid has positively impacted the education sector through infrastructure
development, school fees payments, stationery provision, teacher training, and curriculum
reform. The positive impact of Foreign aid has led to the achievement of SDG 4’s goals and
targets and promoting empowerment which is one of the pillars of Human development.
However, the quality of education remains a major challenge, and sustainability is often
hindered by issues like corruption, inadequate teacher training, and a lack of contextual
relevance in curriculum design and it adopting a remedial method of Social Work (Birdsall &
Subramanian, 2012). In analysis, there is need for African countries to be empowered in
order for them to be self-sufficient.
In addition, Foreign aid is credited for funding WASH projects which are necessary for
public health. For example, projects funded by European Union, UNICEF, PLAN
International and other Non-Governmental Organizations, have improved access to clean
water in remote areas of Africa, reducing waterborne diseases(WHO,2023). These WASH
programs have led to Social development as they enhance overall health and target women
empowerment.
Moreover, Foreign aid's influence on economic growth is perhaps the most contested aspect.
While aid can stimulate short-term economic activity through infrastructure projects, some
scholars argue that aid can distort markets, create dependency, and even fuel conflict (Collier,
2007). The "aid curse" hypothesis suggests that an overreliance on foreign aid can
undermine domestic resource mobilization, weaken governance, and stifle economic
diversification (Svensson, 2000). On the other hand, others argue that carefully targeted aid,
combined with strong governance and institutional reforms, can play a positive role in
fostering economic growth (Burnside & Dollar, 2000).
In addition, governance and institutional environment shape the effectiveness of foreign aid.
Aid’s effectiveness is drastically reduced in countries affected by corruption, weak
institutions, and a lack of accountability (Knack, 2004). Aid channeled through corrupt
channels often fails to reach its intended beneficiaries, exacerbating inequality and
undermining trust in government. Conversely, aid can be used to strengthen institutions and
promote good governance, but this requires a strategic approach that focuses on capacity
building, institutional reform, and promoting transparency and accountability. In analysis, for
African countries to execute Socio-economic development there have to adhere to SDG 16.
However, Foreign aid has negatively impacted African Countries by eroding democratic
accountability by providing governments with substantial unearned revenues (Mkandawire,
2010). This reliance on external funding may reduce the necessity for governments to be
accountable to their citizens, as they are less dependent on domestic taxation. Consequently,
this dynamic can weaken the social contract between the state and its populace, leading to
diminished governance quality. In analysis, foreign aid leads governments to avoid
implementing policies that promote economic growth and democratic engagement.
Influxes of Foreign aid can inadvertently disrupt local economies especially in agriculture
linked markets (Mkandawire, 2010). For instance, during humanitarian assistance, local
farmers may struggle to compete with free food aid, further on leading to decreased
agricultural production in farms, business closures and job losses. In analysis, despite foreign
aid’s benevolent intentions, its interventions cause detrimental economic consequences by
displacing local businesses and creating long-term reliance on aid.
It is argued that the availability of aid funds can sometimes perpetuate corruption and
inefficient governance. In health and education sectors, reports on allocation of funds have
been made whereby resources intended for the public were taken by corrupt leaders. Aid has
been misappropriated, leading to increased debt without corresponding development
outcomes, for example Zimbabwe owes African Monetary Fund (African Development Bank,
2020). Therefore, there is a need for African countries to implement stronger mechanisms for
transparency and accountability in aid distribution.
Despite these challenges, many experts believe that foreign aid can still play a critical role in
supporting Africa's socio-economic development, if done effectively. This requires a shift
from traditional aid models to more innovative and collaborative approaches that prioritize
African ownership, leadership, and capacity building.
In summary, the influence of foreign aid on Africa's socioeconomic development is varied.
Although aid has led to beneficial outcomes in specific areas, particularly in health and
education, its effectiveness has been hindered by significant issues such as aid dependency,
corruption, and unsuitable conditions. Future aid strategies need to tackle these problems by
emphasizing good governance, reinforcing local institutions, encouraging sustainable
development practices, and ensuring that aid is aligned with local needs and capabilities.
REFERENCES
African Development Bank. 2020. African Development Bank Group Annual Report 2020.
Brautigam, D. 2011. The Dragon’s Gift: The Real Story of China in Africa. Oxford
University Press.
Collier, P. 2007. The Bottom Billion: Why the Poorest Countries Are Failing and What Can
Be Done About It. Oxford University Press.
Easterly, W. 2006. The white man's burden: Why the West's efforts to aid the rest have done
so much ill and so little good. Penguin Press.
Hanushek, E. A., & Woessmann, L. 2015. Knowledge capital: Education and the economics
of growth. MIT press.
Mkandawire, T. 2010. Aid, Accountability, and Institutions in Africa. Development and
Change, 41(3), 357-372.
Moyo, D. 2009. Dead Aid: Why Aid Is Not Working and How There Is a Better Way for
Africa. Farrar, Straus and Giroux.
Radelet, S. 2006. "Foreign Aid and Economic Development." In Banerjee. A, Benabou. R, &
Mookherjee.D (Eds.), Understanding Poverty (pp. 331-354). Oxford University Press.
Sachs, J. 2005. The End of Poverty: Economic Possibilities for Our Time. Penguin Books.
Stiglitz, J. E. 2002. Globalization and its discontents. W. W. Norton & Company.
Svensson, J. 2005. Eight misconceptions about aid, corruption and governance. Journal of
Economic Perspectives, 19(3), 183-200.
