FastCompany magazine conducted an interview with Dambisa Moyo, author of the book Dead Aid – via reader-submitted questions on Twitter.  It’s a brave new world, people.

FC: We have some reader questions for you. The first one ties in with something we were just talking about: credit ratings and the bond markets. You’re very big on the capital markets, but doesn’t it have just as horrible a record over the decades? Is it that much better for development?

Moyo: Absolutely. Look at China. China was worse off than many African countries 30 years ago. They’ve moved, in 20 to 25 years, 300 million people into the middle class.

FC: But has that been because of the capital markets or because of the power of the government?

Moyo: I think the government. I should clarify that there are clearly differences between the free-market system that has pervaded Western society and the ethos of the Chinese model. China has encouraged entrepreneurship, free-ish trade, and the investment into the country. I would consider that as broadly in line with the Western view of a capitalist model, but of course it’s a command model.

My point is that Africa is nowhere near that. It’s aid dependent. Health care, infrastructure, security–it’s all provided by foreigners.

FC: Do you have an example of a country that has done well in the capital markets, where it has been a major component of its development?

Moyo: Ghana. Ghana has done well. It’s been against the wishes of the donor community. I saw a letter from the World Bank saying they shouldn’t go to the capital markets. It said, “It’s cheaper to borrow from us.” It’s cheaper in the financial sense, but the stigma associated with continuing to be a borrower from the World Bank as opposed to having a transparent credit rating where you can price your risk–it’s enormous. Nobody wants to invest in a basketcase. If you say, they’re dependent on aid from the World Bank, most investors will say thanks but no thanks.