Wednesday, June 17, 2009

GOSS and US Govt Sign $203 Million New Grant Deal

A long time in the works, the GOSS and USAID signed an agreement on a new development grant (not a loan, a grant). The $203 million grant will focus on a few cherry picked programs; womens' education, health issues that deal with malaria and such, and some ambiguous governance and elections issues.

We're a proponent of development aid, as long as it fosters the fragile economic conditions of an environment like Southern Sudan's. Inundations of food aid, and other free commodities, removal of the most productive individuals from the labor pool for unproductive aid project "administration", etc., all retard local economies.

For example, the prolonged (and still underway) inundation of food aid has almost killed off South Sudan's indigenous agricultural production. Why would local farmers clear and farm land when others give food and food products for free? An unintended consequence of food aid being applied too long and too generously, certainly, but a stark reminder that not every "solution" is a solution.

We'll look for the link to the whole agreement and post it later.

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