Implications of a major increase in aid to Africa: The case of Zambia

Abstract

This article uses evidence from Zambia to assess the implications of increased aid. It finds that earlier surges in aid, amid attempts to promote structural adjustment, did little to promote growth or macroeconomic stabilisation. This occurred, in part, because donors insisted on too many changes at once and provided insufficient funds. Economic fundamentals changed little, and too little attention was given to poverty which rose as a result of structural adjustment. The Zambian government also suffered from insufficient political will and technical/ managerial skills; poor databases and accounting systems; low analytical capacity; weak institutions; and a lack of policy clarity. To maximise the impact of increased aid, it is now crucial that donor initiatives be made compatible with Zambian (and other African) development aspirations; that processes be kept as simple as possible; that goals be achievable; and that donors invest not only in African capacity building, but in their own human capital, capacities and institutions to improve their ability to underst d their proper place in the architecture of aid. © Institute of Development Studies.