Most notably, African economies are now coming into their own.
The IMF predicts sub-Saharan Africa will grow by 5.4 percent this year — figures the West can only dream of.
“The old category of ‘developing country’ is now meaningless,” said Paul Collier, head of Oxford University’s Centre for the Study of African Economies.
“Emerging market economies do not need aid. This reduced need has coincided with OECD budget tightening,” Collier told AFP.
When donors recently froze aid amounting to 11 percent of Rwanda’s budget, the country simply raised $3.5 billion through the issuance of sovereign bonds.
Britain’s recent announcement of the end of direct aid to South Africa typified the trend.
To be sure, long-held doubts about aid effectiveness and corruption informed the decision with commentators noting wryly that the aid cut roughly corresponded to the $22 million President Jacob Zuma spent on “security” upgrades for his home.
“Why would you put it where there is corruption?” asked Winnie Byanyima, executive director of global aid organisation Oxfam. via – ModernGhana.com