Published online by Cambridge University Press: 10 December 2019
Attracting financial capital is essential for economic growth in developing countries, but tragically can often foster nondemocratic politics. Consider, for example, the impact of foreign aid. Since 2008 Ethiopia has been one of the largest recipients of US aid in Africa, averaging around $80 million per year. While the aid is intended to foster economic development, practitioners are growing increasingly wary of its political ramifications. Before the Ethiopian national election in 2010, foreign donors were charged with “subsidizing a regime that is rapidly becoming one of the most repressive and dictatorial on the continent.” Western aid officials “seem reluctant to admit that there are two Prime Minister Meles Zenawis. One is a clubbable, charming African who gives moving speeches at Davos and other elite forums about fighting poverty and terrorism. The other is a dictator whose totalitarianism dates backs to Cold War days.”
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