Globalisation, Aid and Economic Transformation: The African Experience

After decades of foreign aid developing countries remain atrophied economically. However, with the emergence of globalization-driven reforms, hope rekindled that foreign aid would be the long awaited panacea for regeneration of development. But as measures under globalization has only led to cosmetic changes in the modus operandi rather than in the substance of operationalization, human and economic development have continued to deteriorate. Consequently, the article questions aid effectiveness in Africa. The article concludes that the seeds of hope for foreign aid effectiveness lies principally in advancing the formation of a pluralistic system of economic decision-making at all levels; stakeholders support to the building of local institutional capacity for policy; accountability, and implementation; donor transparency on aid actions, intentions, and goals; making sure that aid programs allow for attaining heterogeneity of needs; and finally ascertaining that foreign aid programs and conditionalities are based on a nation’s development plan.