Are increases in foreign aid helping, or hurting, the people of Africa? Well in an new study conducted by the International Policy Network, it appears foreign aid has been very counterproductive to African economic development. From Sweden, here’s study author Fredrik Erixon: “Africa received over $400 billion in aid between 1970 and 2000. Yet, our study shows that as aid has risen in Africa, growth has fallen. In part this is because aid supplants private sector investment and undermines savings: Although bad governance is not the only explanation for Africa’s woes, the vast majority of countries in Africa are badly governed and bad policy is the most important factor to explain their continuing poverty.”

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