The conference "Raising Living Standards in Africa: A Role for the G8" began this afternoon in Edinburgh.  The former president of Mozambique, Joaquim Chissano, opened the event.  Mozambique is considered among the 'success stories' of the effectiveness of aid in recent days.  Absolute poverty is being reduced, a peaceful transfer of political power was accomplished, and the growth rate is high.  Peter McPherson, former head of USAID under Reagan, and a principal advisor on the economic reconstruction of Iraq (among his many roles), set the agenda -- charity isn't enough; development must be enterprise-driven, and in the case of Africa, it is African leaders themselves who are leading the way, and their leadership is absolutely critical. 

The Economist: Helping Africa Help Itself, The $25 Billion Question, Doing Business in Africa

In light of the G8 summit, The Economist published several articles related to foreign aid to Africa in this week's edition. One, Helping Africa Help Itself, advocates foreign aid on the basis that it constitutes a relatively small amount of rich countries's GDP, and that a few foreign aid projects, particularly in disease eradication, have had large impacts on the lives of the poor. Another,The $25 Billion Question, includes shocking statistics of the misuse of foreign aid, due to the inability of donors to properly align the incentives of government bureaucrats to ensure that they use the aid as intended by the donors. A third, Doing Business in Africa, describes the healthiness of the business climate in Africa, and the success of large, African firms.