sign in sign up
<<
Home , Neocolonialism

http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 ©INOSR PUBLICATIONS International Network Organization for Scientific Research ISSN: 2705-1676

Foreign as Mechanism for Perpetuation of Neo- and Dependency: An Interrogation of Issues and Way Forward for Developing Economies

Eneasato Benjamin Onyekachi

Department of Political Science Enugu State University of Science and Technology Nigeria Email: [email protected]

ABSTRACT Relying on extant and contemporary documented evidences, this paper qualitatively explored foreign aid as mechanism for perpetuation of neo-colonialism and dependency: an interrogation of issues and way forward for developing economies. Cognizant of the assumption that 'there is no alternative' to as practiced in the United States of America and Western ; an assumption perceived by this paper as an intendment to hoodwink developing countries to underdevelopment and dependency. This paper attempted to show that except there is a fundamental reorientation in the conceptualization of capitalism–free market and democracy–the underdevelopment problem would only be further complicated with foreign aid as it will further undermine the ability of developing economies to rise above the preponderances of capitalist emasculation and thus perpetuating the dependency syndrome. Some argue and aptly too that, the financial institutions of the post- II era are themselves instruments of neo-colonialism; fostering control or domination by a few powerful capitalist countries over weaker ones (especially former ) by the use of foreign aid to vent economic pressure, political suppression, and cultural dominance. Aid agencies comprised of bilateral and multilateral agencies that provide grant financing and technical assistance for public and civil society partners in developing countries. Seemingly, aid programmes tend to focus on the poorest populations and emphasize investment in social sectors such as health, nutrition, education, the environment, governance and human rights but in the case of Africa it has apparently served as tool for neo-colonialism and dependency; this and the way forward formed the crux of this paper. Keywords: Foreign Aid, Mechanism, Perpetuation of Neo-colonialism, Interrogation of Issues, Way Forward, Developing Economies.

INTRODUCTION A lot of questions and concerns call to How paradoxical the first became the last. mind. What actually is the problem with What are the internal and external forces Africa? Why has Africa refused to responsible for the current state of develop? Why have countries in other African development? What is the continents that shared similar colonial intersection between colonialism, foreign experiences with Africa risen above the aid, neo-colonialism, underdevelopment precipice of colonial entanglements in and dependency in Africa? The questions their development drive while African and issues are inexhaustible and indeed countries by the day remain immersed give cause for serious concern. and submerged in seemingly total In the search for possible answers, it dependence on foreign aids? Is Africa could be argued that there is an under some sort of curse, is it man made intersection between foreign aid, or self inflicted. Back then we were taught capitalism, neo-colonialism, and in school that Africa was the cradle of underdevelopment in a cyclical civilization. What has happened now? continuum. To understand this better, we

101 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 take recourse to , who is  Even though the former colonies believed to have coined the term "neo- were now formally independent, colonialism," which appeared in 1963 they were still rather dependent on preamble of the Organization of African the West for assistance in States Charter and was the title of his developing economic and political 1965 book Neo-Colonialism, the Last Stage structures. Thus, Western of (1965). As a political corporations still had a significant scientist, Nkrumah theoretically amount of control over the new developed and extended, to the post–War states. Newly independent states 20th century, the socio-economic and borrowed money and requested for political arguments presented by Lenin in and accepted aids from the West in the pamphlet Imperialism, the Highest order to fund their own Stage of Capitalism (1917), about 19th- development, resulting in a new century imperialism as the logical system of debt and dependency extension of geopolitical power to meet syndrome. the financial investment needs of the  Although ended of capitalism. formal colonialism, unequal In further illustration, [1] revealed as economic relationships between follows; after WWII, decolonization ended the developed West and newly formal colonialism, but economic independent states had set up a inequality has given rise to system referred to as . In the above context the neocolonialism. following points are to be noted: Worried by the above scenario, this paper  was motivated by set out to appraise the phenomenon of . European powers foreign aid as mechanism for sought to expand their markets perpetuation of neo-colonialism and and acquire raw materials dependency: an interrogation of issues overseas. and way forward for developing  Decolonization occurred in economies. Fundamentally, this paper response to proposes way forward from the foreign movements in colonized territories aid doldrums. when European powers determined Statement of the Problem that the benefits of maintaining For some decades it has remained a colonies were not worth the costs. matter of global debate among scholars of  Neocolonialism is the practice of diverse leanings especially in developing using capitalism, , countries as to the motif behind foreign and cultural forces to control a aid. This debate is on the one side country in lieu of direct military or motivated by the concerns as to whether a political control. hitherto colonial grand inquisitor will  Neocolonialism is motivated by sincerely give out aid to a country it once economics. Countries and exploited and expropriated without some corporations seek to achieve ulterior motives to satisfy. These favorable economic policies concerns are more exacerbated by the fact overseas and do so by pinning that foreign aid doesn‘t seem to be loans and aid to particular actions showing any significant progress to on the part of African states. alleviating poverty in developing  The dependency principle refers to countries and Sub-Saharan Africa more the claim that post-colonial states particularly. Despite the rising volume of have no choice but to accept foreign aid made available to developing Western conditions for loans and countries, they still remain home to the aid because they desperately need largest portion on the world‘s ―bottom the money to support their own million‖ in extreme poverty. Since the domestic policies. 1950s traditional development economics has been dominated by the idea that large 102 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 donations is the solution to the savings nations into the World Capitalist System gap in developing countries but evidence explains the reason(s) for their shows that large influxes of foreign aid underdeveloped status. The World can end up doing more harm than good. Capitalist System, it is argued, conditions The failure of foreign aid to meaningfully the economies of these nations and makes translate to growth and development in them subservient to and 'dependent' on developing countries is blamable on both the system. Thus, an understanding of the internal and external forces. On the one less developed nations' position cannot side there are governance issues and be clear without taking the 'external corruption while on another side there are factor' into consideration. It is this factor the forces of capitalism, neo-colonialism that explains the economic, political and and globalization which subjugate and social structures of the less developed submerge developing economies to nations. Hence, the effect of colonialism dependency syndrome. It is against the and neo-colonialism on the above backdrop that this paper sought to Nations is given prominence. According appraise the phenomenon of foreign aid to [2], it is what brought about as mechanism for perpetuation of neo- underdevelopment. colonialism and dependency: an [3], using Baran's concept of economic interrogation of issues and way forward surplus, uses the concepts of 'metropolis– for developing economies. centre' and 'peripheral–satellite'. He Objectives of the Study shows how the 'chains of dependency' This paper sought to appraise the from the most advanced societies to the phenomenon of foreign aid as mechanism most rural parts of are for perpetuation of neo-colonialism and linked through the dependency: an interrogation of issues expropriation/appropriation of economic and way forward for developing surplus from the latter by the former. In economies. Consequently, the specifics this process, the social, political and are to; economic structures of developing 1. conceptually review the meaning countries were determined. This led to and origin of neo-colonialism and the polarization of the metropolis and the foreign aid; satellite nations in which case the 2. assess the intersection between expropriation of surplus to the metropolis foreign aid, corruption, neo- led to its development while the colonialism and African expropriated satellite nations became dependency syndrome; and underdeveloped. The situation arose 3. to suggest ways by which because the political elites–created developing economies can through the incorporation of the Third overcome the dependency World nations into the World Capitalist syndrome. System — were conditioned to suit the Theoretical Framework purposes of the metropolitan bourgeoisie. This paper is predicated on the Thus, their interests became linked framework of initiated together. For Frank, and others, therefore, by Paul Baran's (1957) The Political development cannot be achieved through Economy of Growth and which has been the political elites in the underdeveloped expounded in various ways. This nations. Foreign aid perceived from this exposition is more in terms of using model is like a revolving door that various terminologies rather than limiting recycles the perpetuation of neo- certain terms to academic spheres. colonialism and dependency without Basically, the theorists tend to identify actuating the much touted development the same reason for underdevelopment in in developing countries. the less developed nations. This is the Conceptual Review of Neo-Colonialism World Capitalist System. Within this The concept of neo-colonialism was perspective, it is posited that the developed to describe the phenomenon incorporation of the less developed where the attainment of political 103 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 independence by African States was not activities… owned by people outside its accompanied with economic jurisdiction, which are directed at independence. Thus, it is being applied to external needs, and which are run in the describe a situation where the acquisition interests of external economic powers [7]. of juridical independence has not [8] argues that neo-colonialism is not succeeded in eliminating colonial simply economic control and exploitation, exploitation and vestiges. In one of his but a comprehensive phenomenon, whose earliest books, written in 1945, but objective is to fashion subordinate published in 1962, [3] identified three peripheral capitalist societies in the third doctrines of colonialism as the doctrine of world‖. By the above definitions, it is exploitation, the doctrine of trusteeship undoubtedly crystal clear that capitalism or partnership, and the doctrine of and neo-colonialism are birds of the same assimilation. But with neo-colonialism, feather flocking together to perpetuate the essence of these doctrines was underdevelopment in Africa and the rest retained in a subtle, but even more of the developing countries. effective form. In another book, [4] set the Neocolonialism as could be seen is stage for a more profound and incisive economic domination, subordination and meaning of neocolonialism. exploitation of weak economies by the Nkrumah attributed the creation of pawn developed nations using the forces of or client states‖, who are independent in capitalism. How then did neocolonialism name‖, to the covert subtleties and evolve? maneuvers of neo-colonial forces. Also, in Evolution of Neo-Colonialism his 1965 publication, this drew the anger In his short, but scholarly work on neo- of the State Department in the United colonialism, [9] identified four stages in States, and which many believed led to African transition to a neo-colonial status. his fall in 1966; Nkrumah was more During these stages which, according to profound and penetrating in his him, spanned a period of five centuries, description and exposition of neo-colonial Africa was subjected to both open intrigues and maneuvers in Africa. He exploitation and subsequently, described neo-colonialism ―as the last underdevelopment of her economies. stage of imperialism‖, according to Iweriebor‘s classifications are, perhaps a Nkrumah: ―The essence of neo- summary of Walter Rodney‘s How Europe colonialism is that the state which is underdeveloped Africa, or Basil subject to it is in theory independent and Davidson‘s book, with the title: The Black has the outward trappings of sovereignty. Man’s Burden – Africa and the Curse of In reality its and thus the Nation-state. its political policy is directed from These stages are discussed below: outside‖ [5]. 1) The Period of Slave Trade: The From the writings of other scholars such first epoch of slave trade spanned as , Samir Amir, and Julius from the 15th Century to the early Nyerere the evils and intrigues of neo- 19th century, when slave trade was colonialism were revealed. In the early abolished, to pursue what was 1960s, in the aftermath of African called ‗legitimate trade‘. During independence, Frantz Fanon in the this period Africans were parceled ―Wretched of the Earth‖ warned of the and shipped to Europe and North dangers posed to true African America to provide cheap labour. independence, the un-liberated condition The ―surplus value‖ produced as a of African States, whose economies were result of this massive exploitation still dominated by the former colonizers contributed significantly to the [6]. , also bemoaned the industrialization of Western absence of such things as a national Europe while resulting in the economy in African States, and described underdevelopment of Africa. the neo-colonial status of African States, 2) The Period of Mercantile Trade as reflected in the ―various economic or Imperialism: The period 104 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 spanned from the early to late 19th described them as a ―class which century constitutes the second era thrived under colonialism‖, and of exploitation. This epoch benefiting still ―under post inaugurated in Africa the independence, neo-colonial operations of British Companies period‖. like the British South African 4) The Neo-Colonial Stage: The root Company, British East African of neo-colonialism in Africa is two Company and the United African dimensional; internal and external. Company as well as companies of The ideologically backward, and other colonial powers, like , reformist nationalist leadership Portugal and Spain [10]. But that succeeded the colonial because Western imperialism powers, and pursued economic considered the exercise of and political interests against the sovereignty by Africa as common interests of the people, exemplified in several treaties of constitutes the internal dimension. friendship, signed with African The external dimension is traditional rulers objectionable, represented by Western ―neo- they pressurized their home imperialism‖ represented by countries to colonize Africa. This Western Capitalist States which was the antecedent to the scramble offer various tempting financial, for, and the eventual partition of educational, and advisory aids to Africa in Berlin in 1885; which set the new African States‖ [12]. the stage for the third epoch. Evolution and Nature of Foreign Aid 3) The Era of Colonial Domination: Aid simplistically in this context is a form This was the era direct political of assistance, usually financial, given to domination, economic developing countries and meant to help exploitation, and cultural these countries accomplish their imperialism. When it suited the development objectives. Greater Europeans, this colonial percentage of such aids may come from subjugation of Africa by superior former colonial metropolis to strengthen firepower was justified on the bilateral ties between the former colonies altruistic ground of ―civilizing and their colonial powers. In Africa, mission‖. In other instances, it was foreign aid comes in diverse forms: based on the myth of racial support for projects or investment, superiority. The tenor of this era budget support, technical assistance of was the forceful conversion of various projects, debt relief etc. It may be African land and resources, as well given in forms of grants which may not as African rulers as colonial have to be paid, loans payable at lower agents, under ordinances issued in interest rate over a longer period, the name of the Crown. But the contributions or aid from UN institutions, more enduring consequences of IMF, or regional banks. For the colonial era were the instance, the USA gives its aid to establishment of the structure, and countries to support: State capacity institutions to foster African building to strengthen security and in economic and ideological conflict management and resolution. Or dependence on the West. This was else, build up business partnership by achieved through the development supporting the generation of demand of of export crops tied to external US goods [13]. vagaries, commerce ―base‖ tied to In terms of its nature, [14] classified Western outlets and ―investment‖ foreign aid into key thematic areas: in extractive industries. Investment in people (social welfare Colonialism also created a provision), environmental protection and bourgeois class which [11] called climate change, support to non-state ―African bourgeoisie,‖ and organizations involved in human 105 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 development, and migration countries going aboard the way of issues, (EC) No1905. It may also include electoral reforms, multiparty system and aid to local population in health sectors, any other political act advocating education, and housing and so forth as it democratic atmosphere. These aids were is currently the case of European Union to also given to nations coming out of long the people of Burundi. They support civil period of conflicts to strengthen peace society organizations to promote the building in the country, supporting atmosphere of good governance and electoral processes or to empower new protection of human rights, protection of political formation and civil society natural resources, state building in post- organizations. Other factors that attracted conflict cases; it is also given to support aids were prevailing security threats, not national budget. It can include only because they destabilize the nation‘s humanitarian aid meant to offer quick ongoing development projects, they also relief intervention to alleviate suffering derail donors‘ interest in developing inflicted by man-made disasters and countries. Countries can be easily conflicts [15] supported to deal with criminal activities Most significantly, in developing such as human trafficking, cross boarder countries especially Africa, foreign aid organized crimes, environmental threats, has received bitter criticisms. From the mainstreaming of gender which are 1970‘s, the dependency theorists viewed normally connected to poverty [20]. With aid as a form of exploitation and self- all these factors and conditionality for enrichment: Only the elites become foreign aid, there has not been any beneficiaries of nationally designed significant difference between where projects. On the side of the donors, developing countries were before and neoliberals see in Aid an extortion of where they are today. To this extent resources, a long earned asset being therefore, we shall proceed to appraise dashed to impoverished nations incapable the intersection between foreign aid, of making a best use of it to effectively corruption, neocolonialism and come out of poverty. In the 1980‘s, dependency syndrome. conditions upon receiving aid were Foreign Aid, Neo-Colonialism and introduced, which in most cases were Africa’s Dependency Syndrome: an related to institutional reforms and good Interrogation and Way Forward economic policies. The Washington To properly put the subject matter of this consensus introduced the Structural section in perspective, an analysis of the Adjustment Programs (SAP) loans to deal economic growth in Asia over the past with inefficiency of the state. This decades, which has received little foreign Conditionality was later viewed as rather aid in comparison to Africa, is a good hampering with sovereignty and dignity starting point. World Bank Reports (2018) of countries because of their coercive show that out of the over 700 million nature. [18] saw foreign aid as not only people who were pulled out of poverty inefficient to reducing poverty, but as between 2001 and 2017, about 627 means to foster dependency. million of them were in . That leaves In the 1990‘s the wind of economic neo- us with about 73 million throughout the liberalism postulated that the world rest of the world. In other words, 89.6% should go the way of Democracy and any were from China, giving us a clear state ought to embark on political reforms indication that foreign aid isn‘t the making institutions as democratic as answer. Like [21], one would have thought possible where good governance, respect that foreign aid was the way forward of human rights and the likes were when it comes to eliminating extreme favorable conditions that could make poverty but since the 2000s the ―big development and stability possible. The push‖ theory has been subject to heated political orientation of the country could debate highlighting the negative determine how much aid it could receive consequences of aid which seem to have [19]. Aid could therefore be given to 106 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 left developing countries in a worse place significant increase in corruption in than before [22]. developing countries [25]. With focus on Sub-Saharan Africa; we hear The scenario is that the proceeds from about all these efforts but when we take a foreign aid are not used effectively to look at the statistics of foreign aid solve social problems beneficial to the budgets to , Angola or Nigeria, the population or used to promote growth level of progress suddenly appears to be and to help the poor but is instead used very low in comparison to the huge sums for instance on military equipment, white received. The continent as a whole elephant projects, dishonest receives roughly $50 billion of procurements, etc. It is also used by international assistance annually. Yet, leaders who are short of time with instead of drastically improving the living policies and want to achieve them conditions of the 600 million people who quickly, i.e.: increasing the size of the live below the poverty line, this aid makes government with civil servants (who don‘t the rich richer, the poor poorer and necessarily contribute anything more to hinders economic growth in the region, the system or development) just to cut not to mention catalyzing the vicious down the unemployment rate. cycle of corruption [23]. [26] in their study regarding the outcome Some of the aids available to developing of foreign aid identified that another countries come under Official consequence of foreign aid is that it is a (ODA) which is the neocolonialist tool for the perpetuation of official financing that is distributed dependency syndrome. Some developing among developing countries with the aim countries have become used to receiving of promoting economic development and such large sums of money in foreign welfare in these countries. The money assistance that they do not promote local that floods into Africa comes not only interest because they have ―free‖ money from individual government-to- at their disposal instead. This prevents government aid programmes but also any form of improvement in terms of international development agencies such human development and per capita as the World Bank and the IMF, which act income. More so, beyond the above as a channeling intermediary between the concern, the political and strategic donor governments and receiving interests of the donors dictate the aid governments [24]. Unfortunately more giving process more than concerns of than anything else, foreign aid is good governance in the recipient apparently synonymous with promotion nations. Western capitalism at its best is of corruption and dependency. According self centred, exploitative, profit or to Transparency International (2016) aid interest oriented depending on what the strengthens corruption in countries where interest of the donor state may be. it is already widespread. Unfortunately, Colonial history also plays a huge role in this is the case for many countries in Sub- the foreign aid process thereby Saharan Africa. Evidently, the largest reproducing and sustaining recipients of foreign aid are in Sub- neocolonialism. France tends to give a lot Saharan Africa, which happens to be to its former colonies perhaps as a where the world‘s lowest ranked countries consequence of guilt of the past. Australia in many areas of governance are, and Nordic countries have a tendency to especially in terms of corruption. This discriminate, or unlike France and the UK shows that foreign aid simply reinforces they ―can‖ choose to give only to the less the amount of resources available to corrupt countries because they have no already corrupt specific elite groups of colonial legacies thus freeing them from people, thus tipping or keeping the political pressures [5]. balance of power into the hands of the In the submission of [12] in most cases, executive branch of government. There is foreign aid in form of economic bailout therefore a clear correlation between has been seen as a form of economic increased foreign aid and statistically exploitation; entanglement and defective 107 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 as it tends to rather deteriorate existing the savings rate. Many scholars are at economy as in the IMF-related fiscal target convergence on some factors making always compel the recipient countries to Foreign Aid not to work in developing adopt measures with seemingly harmful nations especially in Africa: [15] state that effects at a long run. In the course of the it decreases returns as it is mostly heavily aid or loan processing, conditionality influenced by external conditions and such as government‘s withdrawal in social also, its relevance in the overall economic services delivery and subsidy hinders growth depends upon the nature and government services‘ expansion and so performance of political institutions in therefore productivity. Workers are only place. Foreign Aid is normally contracted contracted on part-time basis without for specific reasons: promoting economic being on payroll. As the aid does not growth and poverty reduction, to promote come all at once, there is always lacuna in short-term political interests. Ali, [6] its efficacy. Delays in implementation of Foreign Aid remains unfavorable and projects are due to aid‘s volatility and ineffective as it remains volatile: The unpredictability. It fails to have a positive mode of disbursement is too lengthy and impact as it can not be used for a long cumbersome and hence [3] affirms that term investment. [21] assert that a the unpredictability of aid flows does not lengthy bureaucratic process where there bolster good governance in any way; it is corruption and mismanagement makes hinders coherent government foreign aid quite unfruitful. expenditure, or the development of sound A number of theories and extant literature institutions‘ accountability in recipient identifies numerous sources of failure of countries. In as in many other foreign aid but most of them revolve African countries, the history of Foreign around the fact that, foreign aids are Aid showed a relative fiscal stability at short term interventions lacking lasting the expense of employment during the sustainable impact. Some of these blame era of Programmes. the world economic structure where Less [23] showed how, despite the long Developed Countries are put in perpetual relationship with the IMF, the country dependency. A mixture of internal and remained solely dependent on cocoa and external factors makes aid not be geared gold export. It‘s recourse to IMF loans towards people‘s welfare but a long term where mostly in times of fiscal deficit, gain for donors. African political economy high exchange rate and inflation, is a product of western imposed models increased debt and borrowing making the and ideologies. My candid view remains, government unable to stabilize the African nations‘ development may still economy. depend of the willingness of the world Elsewhere, though Foreign Aid could powers to give space to nascent increase access to social amenities and economies on their own, or simply services, such as a relative rise in school depends on the willingness of developing enrollment for the basic education and countries to set priorities and agenda health, this could not follow the increase aimed at standing on their own to design of facilities and quality of services in their own fate. those facilities. In some studies made, Unfortunately so, Foreign Aid has always [11] saw that it can only stabilize been the last resort of most African deteriorating poverty but not improve the nations as its acquisition has not situation, simply because it can take a demonstrated much laudable and longer time before the impact can be felt. commendable outcome and here goes the Experiences however differ in many saying that, between two evils, the lesser nations as Aid is meant to solve diverse is preferred. As [11] noticed, Foreign Aid problems but in most cases, its volatility can only be beneficial if it can positively and unpredictability makes it difficult for affect the investment, makes it possible countries to factor it into long term for countries to import capital goods or spending plans and include it in budgets technology and does not directly affect and therefore, its efficiency is 108 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 questionable. In their study, [23] showed receiving Foreign Aid so that they may how donors may prefer to release their put in place measures that could make it funds to solve problems other than the possible for them to pay back [15]. This sectoral priorities set by the governments Conditionality was seen as substitute of where these funds are highly managed by collateral assets as donors ensure that their own experts and or by independent there is a clear and sound economic NGO‘s which are merely implementers of policy which will enable aid yield fruits. already designed projects. Funds meant Other analysts saw them as safeguard to to help governments achieve its mandate moral hazards. This could be more to combat poverty and related challenges frustrating when donor countries send may be directed by foreign policies of their own experts to monitor the usage hidden economic or political agenda and usefulness of the aid to persuade and whereas, they must be subjected to encourage the implementers to adhere to adhere to conditions hard to meet, meant pre-established agreement. Though this to enable its best utilization. Good signals can be a way of ensuring being paid back, of good governance, liberty and freedom it has been also a way of imposing of the citizens, security and human economic policy on developing countries rights, constitutionally laid down as many describe it as an imperialist way governing system allowing participation of keeping a hand on the management of and democratic institutions to operate; affairs of other nations for their own gain are those dependent variables if (EC) No1905 (2006). Despite this bitter trespassed can result into freezing, criticism; Foreign Aid, if well utilized, can withholding or withdrawal of aid. One improve domestic economic policies by may now ask if we still need foreign aid inducing consistent flow of income over and in case we do not, what can be the time [9]. alternative of our so called dependant Future Direction economies suffocated under both Put succinctly, the problem of endogenous and exogenous forces of underdevelopment in Africa has persisted foreign aid. because the paradigm within which In the light of the ongoing argument, development is being sought has not foreign aid has been viewed from changed despite the seeming different angles by both recipients and overwhelming failure. Indeed, as [12] donors of foreign aid. In the 1970s it was surmised, the modern world capitalist criticized to be a form of domination and system, which began in the sixteenth exploitation as it always fall in the hands century and still persists today, is of unprepared grounds, in the hands of structured by six vectors which are leaders with no real vision, weak mutually independent. These vectors – an institutions and corrupt officials. Within interstate system, world production, the 1980‘s with the rise of neo-liberalism, world labour, world human welfare, social Foreign Aid was seen as harmful to local cohesion of states (nationalism), and economies and the structures of knowledge – perpetuate came with unbearable conditionality hard inequality with the US leading the to be met. All through the 1990‘s, these dominant hegemonic structure over the conditionality whose greater part was to Third World nations. obstruct any social oriented policy Of significant interest, however, is the formation in developing countries, also empirical evidence showing that the sought to impose democratic regimes structure of the modern world system will with the full trappings of a capitalist only continue to perpetuate dependency economy. and therefore the underdevelopment After this era, the world economic crises process. The attempt to create made poorest countries to be highly entrepreneurs in Africa is not a new indebted and the London Club had to phenomenon. The colonialists started it. persuade creditors to be conscious on aid The independent states continued it, yet and impose conditionality to countries the result is glaring enough – failure! Such 109 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 failure, again, at the risk of over- before financial assistance because emphasis, is inevitable in a capitalist without strong government institutions, system, which thrives on inequality. In that are transparent and accountable the this structural arrangement, those who financial assistance will not fulfill its own or control the means of production desired goal [9]. are better able to accumulate capital [23]. Recommendations for Policy Foreign aid therefore cannot fill this void. Based on the issues addressed in this If foreign aid therefore isn‘t working then paper the following recommendations are it needs to be reconstructed; if global apt; actors can‘t help then they must at least 1. Rather than foreign aids in the not make things worse. New policies and form of money, the donor incentives can be put together to show countries and agencies need to progress rather than failure. Aid needs to focus more on foreign direct be converted into trade and direct investment, technical assistance investment in critical sectors. and technology transfer in the Pen ultimately, capabilities of the citizens critical sectors of the economy. of developing countries need to be 2. There is need for coordination on boosted so that they become creators of the real need areas for foreign aid wealth and creators of enterprise; so that and measures put in place for the they can live from their own activities. effective management of such aids Thorough and complete policy and decent to avert mismanagement. economic management matter more than 3. More attention needs to be focused foreign aid for developing countries. on institutionalization of Stable and strong institutions avoid aid governance to promote rule of law, from becoming a curse. There should be transparency, accountability and more assistance in improving governance popular participation. CONCLUSION Foreign aid in developing countries has dependency; there is need for a more come a long way but is yet to realize the credible alternative for developing required objectives. This indeed calls for countries not to be dependent on foreign a paradigm shift. Putting recipients in aid. perpetual state of dependency, foreign This paper identified ways to go; rigorous aid has not proved any basis to be relied domestic revenue collection strategies, on as conditionality attached to aid makes tax reforms, laying down stronger it inefficient to eradicate poverty, and institutional reforms, fighting corruption stabilize deteriorating economy. This and all conditions leading to revenue and paper, has shown that no matter the form public funds evasion. Not refute foreign of foreign aid, its relevance to poverty aid as such, its usefulness will occur reduction remains questionable. Being when contracted to be used in the short-term programmes addressing government‘s short and long term public already identified superficial issues, they investment (infrastructure) and human fail to offer a more lasting solution to capital (health and education) which is vital societal economic dilemma. In most likely to create enabling environment for cases, the hard to meet conditionality industries, foreign investors. To yield such as the ban on employment, removal results the foreign aid, once directly of subsidy etc worsen the situation, of the injected in the productive investment living standard of the poor citizens. The projects, making it possible for the gain concern in this context was that since the of the weight of local currency… efficacy of foreign aid has not been Conditionality attached to it should be proved substantially and rather than waved so as to maximize its usefulness. It improve the development status of can also be used in institutional developing countries it has continued to consolidation and building to create worsen the situation and submerging fertile grounds enabling transparency and developing economies in a state of confidence from donor community. 110 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 Relying merely on financial aid cannot importance in raising the likelihood of meet the full range of enterprise success of citizen-owned enterprises, and development problems. Non-financial assisting in raising enterprises out of assistance in the form of managerial and their infancy. technological assistance may be of great REFERENCES 1. Ali A. G., Mwalwanda, C, and but that depends, Journal of Suliman, Y. (1999). Official International Development Vol 18. Development Assistance to Africa: 12. Hassan, U.M. (2000). Role of an Overview. Journal of African Foreign Aid: A Critical Analysis. Economies, 8: 504-527. Political Economy of 2. Baran, P., (1957), The Political .Ferozensons. Lahore. Economy of Growth, New York: 13. Hopkins, T. and Wallerstein, I., Monthly Review Press. (1996), ‗The World System: Is 3. Bawumia, B. (2015). The IMF There a Crisis?‘, in Hopkins, T. Bailout: Will the Anchor Hold. and Wallerstein, I., eds., The Age Central University College, Accra. of Transition: Trajectory of the 4. Burnsid, A.C, and Dollar, D. (1997). World System, 1945-2025, London Aid, Policies and Growth. World and New Jersey: Zed Books. Bank Policy Research Working 14. Ikeda, S. S., (1996), ‗World Paper No. 569252. Production‘, in Hopkins, T. and 5. Buxton, J.K,and Ampah, S.K. Wallerstein, I., eds., The Age of (2015). The IMF & MCC Transition: Trajectory of the World requirements to Ghana: Economic System, 1945-2025, London and Report.GN Research, Groupe New Jersey: Zed Books. Nduom, Accra. 15. Iweriebor, F. (1997). ‗The Concept 6. Carlos, F. and Nicholas, V. (2000). , of development in historical ‗Botswana‘s Financial Assistance perspective: The Third World Policy and the Indigenization of Experience‘, in Uche C. Isiugo- Industrial Employment‘, Centre Abanihe, Austin N. Isamah and for Economic Research on Africa, Jimi O. Adesina, eds., Currents School of Business, Montclair State and Perspectives in Sociology, University, Upper Montclair, News Lagos: Malhouse Press. Jersey (pdf version 2001). 16. Jane, H. and Toye, J. (2000). Aid 7. Clarke, D. (1998). The United and power: The World Bank and Nations at a Critical Crossroads: policy-based lending. By Paul Time for the South to Act, Geneva: Mosley, Jane Harrigan and John South Commission. Toye 1: 317. 8. Ebbington A (2005) Donor NGO 17. Lyons, J. (2014). Foreign aid is relations and representations of hurting, not helping Sub-Saharan Livelihood in non-governmental Africa, Le Journal International aid Chains. World Development 6: Archive, 13(2), 14 937-50. 18. McGillivray M, Torresands K, 9. Fanon, F. (1968). The Wretched of Fieldings S (2001) Does Aid Work the Earth. London: Macmillan For the Poor. Economic Discussion Publishers Ltd. Papers No.114. School of Business 10. Frank E. (1972), ‗Rethinking Studies. University of Otago Press: Bretton Woods from an African Dunedin Perspective‘, CODESRIA Bulletin, 3 19. Morrison, O. (2001). Does Aid (4), 71-80. Increase Growth? Progress in 11. Gillary M, Hermes N, Lensink R Development Studies 1: 37-40. (2006) Controversies Over The 20. Nkrumah, K. (1965). Neo- Foreign Aid: It works, It does not, Colonialism, the Last Stage of

111 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 http://www.inosr.net/inosr-arts-and-humanities/ Eneasato INOSR ARTS AND HUMANITIES 6(1):101-112, 2020 Imperialism. Accra: Longman Publishers Ltd. 21. Nyerere, J. K., (1978), ‗Are Universal Social Standards Possible?‘, South Letter, Vols. 2 & 3, (31), 14-17. 22. Pedro, A. (2009). The Myth of Development: Non-Viable Economies of the 21st Century, London and New York: Zed Books. 23. Rodrik D (1996). Understanding Policy Reform. Journal of Economic Literature 34: 9-41. 24. Sachs, S. (2000), Deindustrialization, Adjustment, the World Bank and the IMF in Africa‘, World Development, 4 (1), 83-95. 25. Transparency International (2016). How Unpredictable Aid Influences Services Delivery: Literature and Data Review: Overseas Development Institute. 33. 26. World Bank Reports (2018). Does Foreign Aid really Work? World Bank Report. New York: World Bank Publication.

112 INOSR ARTS AND HUMANITIES 6(1):101-112, 2020