By Tim Schraeder from the Leadership Summit 2009
AID vs TRADE
> There have been well-meaning but misguided advocates for aid.
> They believed they could bring about change by giving out hand-out’s.
> Even when you to make your case for your vision, people will always stand in the way.
> There is no country in the world that has developed through handouts… why is Africa different?
> We use trade as an engine for growth because it’s part of economic doctrine.
> Trade creates transformational impact for communities.
> Trade is the only succcessful way to bring economies out of poverty.
> Africa today only contributes 2% of the world’s trade goods.
> We often only see the problem, not the opportunities.
> We need to look at Africans as partners, trade opportunity, etc.
> We need to give marketshare, not pity.
> We need to change the conversation.
1. Aid is really not aid.
> Between 1970-2000 Africa has received $400 Billon in aid from Africa
> Their GDP decreased as aid increased.
> Aid is not effective.
> Aid is not really aid.
> It’s poorly structured.
> The country prioritizes what it will spend its money on.
> It’s insincere.
> It’s conditional – we tell them what to do with it.
2. Aid undermines accountability.
> Aid creates chronic dependence.
> So many countries seek donors for their budgets.
> It undermines integrity and dignity of recipient countries.
> We need to get people thinking about the impact of their compassion.
> How do the people receive our compassion while maintaining their dignity?
> We need to look at Africa as a people of consumers, great products, etc.
> Real partnerships can make sustained community transformation.
> The greatest help won’t come from the outside, it will come as you empower people on the inside.
The best way to help Africa is with trade, not aid.
Reconstruct the narrative in your mind that kindness is best expressed through a hand out.
The greatest kindness you can give is to help people help themselves.





