In the context of high degrees of corruption and uncertainty, fewer entrepreneurs [domestic & foreign] will risk their money in business ventures where corrupt officials can lay claim to its proceeds, so investment reduces, and economic growth stagnates.
Aid increases corruption. The problem is that aid is not benign, it is malignant. No longer part of the potential solution, it’s part of the problem – in fact aid is the problem.
Very sobering thoughts from Dr. Moyo’s book: Dead Aid: Why aid is not working and how there is another way for Africa