Economic Impact of Being a Beggar Nation

By Dele Sobowale

When former Singaporean Prime Minister Lee Kuan Yew first addressed his nation, he declared that “The world does not owe us a living. We cannot live by the begging bowl” (From Third World To First in a Generation, p 53). His statement reflected a vision of a self‑reliant country, despite its small size and lack of natural resources.

Singapore has never needed to rely on foreign aid, whereas several African countries, including Nigeria, often seek assistance and face criticism for doing so. Recent threats to cut aid to Nigeria follow a pattern of reductions in assistance to so‑called “beggar nations” during the Trump administration. The Trump administration’s policies toward Africa have been widely criticized as discriminatory.

Inferiority complex and slave mentality

“No one can make you feel inferior without your consent” – Eleanor Roosevelt, 1884‑1962.

When African leaders visit advanced countries, they frequently seek what the author describes as “instructions coded as advice.” The visits are portrayed as favors granted to the African head of state, with headlines focusing on the opportunity to dine in the White House or with the King of England. The author contrasts this with Singapore’s former Prime Minister, who rarely traveled abroad and was received as an equal partner.

The author argues that such visits often result in Memoranda of Understanding (MOUs), loans, or grants that are not truly altruistic. MOUs are statements of intent that are not binding, while loans can impose additional costs on the borrowing country. The author cites a recent loan agreement between Nigeria and Britain for port modernization as an example.

The author describes how a debtor country may be limited in its choice of contractors when the lender also determines the preferred contractor, potentially disadvantaging the borrower. The author shares an anecdote from experience in the United States, involving a plumbing installation company that secured U.S. government financing for African and Caribbean projects. The author notes that the total cost to the country often exceeds 150 % of the original contract due to maintenance and spare‑parts sub‑contracts.

Several aid projects, including those the U.S. is now threatening to freeze, are said to have underlying national interests. The author cites the distribution of COVID‑19 vaccines, noting that the vaccines were manufactured by U.S. companies and that the author believes the vaccines were offered “free” as a form of experimentation.

Way forward

“Advice is seldom welcome; and those who need it the most always want it the least” – Earl of Chesterfield, 1694‑1773, VANGUARD BOOK OF QUOTATIONS, VBQ p 5.

The author argues that Nigeria will remain a “beggar nation” as long as governments and private individuals maintain ostentatious lifestyles. The author contrasts this with wealthy Americans who invest their fortunes rather than spend lavishly. The author notes that waste occurs at the lowest level, citing the Yoruba people’s fashion choices as an example.

The author suggests that Nigeria should voluntarily exit some aid programmes. The author cites Rotary International’s $3 billion contribution to eradicate polio and notes that Nigeria was among the last three nations to be polio‑free because some states refused a free offer. The author argues that Nigeria should be able to handle the current Ebola outbreak without waiting for aid.

The author concludes that donors will eventually cut off supplies, repeating the cycle, and questions how long this will continue.

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