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Is Foreign Aid Panacea for African Problems? The Case of Namibia

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  • Ravinder Rena

    (University of the Western Cape, Republic of South Africa)

Abstract

Namibia has experienced impressive growth since 21 years of independence. Current GDP growth rates, estimated at 4-5%, are fuelled mainly by the increasing competitiveness of the mining sector. Mining sector accounts for half of the national foreign exchange earnings. Low scores on capital investment and education, however, is a considerable barrier to greater economic diversification and may contribute to the poor innovation score. As a result, Namibia remains somewhat dependent on foreign aid, despite relatively high average incomes. This paper will discuss the impact of foreign aid on the Namibian economy by systematically analyzing its influence on developing countries using Namibian economy as focus reference. Fifty years since the first official development assistance (ODA) programs were instituted, the question of the effectiveness of foreign aid remains an unresolved issue. The purpose of the study is to investigate whether foreign aid is effective in helping Namibia to achieve development goals.

Suggested Citation

  • Ravinder Rena, 2013. "Is Foreign Aid Panacea for African Problems? The Case of Namibia," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 11(3 (Fall)), pages 223-241.
    • Handle: RePEc:mgt:youmgt:v:11:y:2013:i:3:p:223-241
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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/11_223-241.pdf
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    References listed on IDEAS

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    Cited by:

    1. Nelson C. Nkalu & Richardson K. Edeme & Winnie O. Arazu, 2019. "Foreign Aids and Sustainable Growth in Africa: Evidence from Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 5(2), pages 84-88.

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    More about this item

    Keywords

    foreign aid; African economy; Namibian economy; economic development; capital investment;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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