Africa and the challenge of self-financing
The Sub-Saharan Africa is now the most region poor in the world with a GDP per capita 17 times lower than that of Developed country; and their level of lives. Moreover the solutions linked to developmental problems are known to all.
Whether in the field of agriculture, health, Education and communication and transport infrastructure, the needs are enormous. However, the implementation of investment projects Public availability requires substantial financial resources. Or find these financial resources in a poor country? The obvious answer to this question seems to be sources external funding.
Whether from loan agreements with developed countries bilateral or multilateral loans managed by international institutions such as the World Bank or the IMF, the main question remains self-financing
Development. Now the weight of external financing remains high Sub-Saharan Africa. This is the case of WAEMU countries where the rate of financing of public investment on own resources not exceed 50%. Own resources financing rate is rose from 35% in 2000 to 50% in 2005.
Furthermore, foreign aid is not bad in itself, but must create a situation of independence among beneficiaries are African states. In addition, it should lead to self-financing of long-term development projects .. As showed Zambian economist Dambisa Moyo’s, the effectiveness of aid development is very low and it leads to further strengthen a situation of dependence, corruption and failure markets.
In addition, theories of political economy show us that people are encouraged to be more involved in monitoring implementation of development projects through the parliament and civil society organizations if the financial resources from their taxes and thus their efforts. Therefore, funding from external resources tends to strengthen more bad governance.
Poor management of aid external causes failure of development projects does not guarantee the repayment of loans. We finally witness a rescheduling or cancellation.
In general, development aid incentives are not always economic. In addition, poor governance encouraged by the free image that external assistance door does not provide the desired results. Thus only fraction of the amount of external aid reaches populations. Most of it is intended to benefit administrative services in the transfer of resources mobilized.
The phenomenon of “leaking bucket” and typing assistance Development: much of the initial resources are “lost “In the process of making them available. It is also possible to consider the argument of efficiency economic bilateral loans from countries with a large capacity financing, such as China and now a need for countries funding.
However, it appears increasingly that aid Outdoor is strongly conditioned by the economic situation in the donor country. Thus the financial crisis of 2008 has prompted developed countries to further control their budget deficits and develop capable security funds to finance budget deficits crisis. Accordingly, the loan agreements involve smaller amounts.
Overall, it appears that the financing of development aid Outdoor can only be a transient phase to self-financing. The trend towards self-financing is observed glimmer of hope in this direction. Therefore, it is desirable that part of the external support is allocated to the establishment gradual development of a self-financing system.