Sunday, June 03, 2007

Trade Versus Aid in Africa, Who Wins?

"Trade Versus Aid in Africa, Who Wins?

Posted by beninmwangi on June 4th, 2007

It seemed like the time was right for me to pen this post about trade -vs- aid. This is a discussion that has a tremendous amount of relevance in Sub Saharan Africa. But it is also relevant in other parts of the world where developing economies are predominate.

Now of course the concept of nations climbing out of the low income status by trade is not a new one. In fact the concept has been around for nearly four centuries and was made popular by Adam Smith. He posited that national national wealth creation comes by way of nations playing to their natural and practical strengths therby producing the items that other nations demand.

So then “what’s the big deal?” some may ask. In other words if it has already been established so long ago that sustaining an economy through production, as opposed to aid, is desirable then we probably shouldn’t be needing this conversation. But we do need it."

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