The EU is giving aid to Uganda for the construction of a bypass around Kampala. This project would be a perfectly sound economic investment. Surely it would make more sense for the EU to buy Ugandan bonds where there is a reasonable chance of reaping a profit than simply giving aid.
In fact, buying bonds in Uganda and many other African countries makes a lot more sense than buying government and corporate bonds in the EU. In the EU, the economy is stagnant and it has no possibility of growth because quantitative easing and ultra low interest rates are a very bad idea.
EU governments and corporations should be allowed to use QE money to invest in Africa where investments make sense.
The EU is giving aid to Uganda for the construction of a bypass around Kampala. This project would be a perfectly sound economic investment. Surely it would make more sense for the EU to buy Ugandan bonds where there is a reasonable chance of reaping a profit than simply giving aid.
In fact, buying bonds in Uganda and many other African countries makes a lot more sense than buying government and corporate bonds in the EU. In the EU, the economy is stagnant and it has no possibility of growth because quantitative easing and ultra low interest rates are a very bad idea.
EU governments and corporations should be allowed to use QE money to invest in Africa where investments make sense.
It's certainly a waste of money, but if it keeps a few 'migrants' from marching northwards, at least there's some benefit to it.
With money from the ECB, giving aid for projects in Africa (directly or indirectly) is easy. However, with the EU in a questionable financial state, is this the best use of money?
The Ugandan govt. can't afford to spend money on such banal things as roads, because there are fancy new jet fighters and main battle tanks to be bought. The SU 30 is especially good, and has been showcased recently in Syria by the Russian Air Force. Who wouldn't want one?
Check out the Irish Air Corps Fleet. Technically, those Cessnas are not actually biplanes. Those are "struts" attached to the wing. And the Pilatus is even better than a Spitfire.
Good enough for Paddy though. Sure don't we owe the IMF an absolute fortune.
