Is foreign aid screwing up African countries?

The NY Times Magazine has a short Q/A with Dambisa Moyo, whose comments are highly critical of aid to African countries, and the role of celebrities. It is a short one, and worth every minute of your time to read it. An excerpt here, where she compares African countries with China:

Think about it this way — China has 1.3 billion people, only 300 million of whom live like us, if you will, with Western living standards. There are a billion Chinese who are living in substandard conditions. Do you know anybody who feels sorry for China? Nobody.
Forty years ago, China was poorer than many African countries. Yes, they have money today, but where did that money come from? They built that, they worked very hard to create a situation where they are not dependent on aid.

Of course, there are lots of studies that are also critical of foreign aid. Including studies from the World Bank itself! Here is one:

Since the early 1980s, virtually every African country has received large amounts of aid aimed at stimulating policy reform. The results have varied enormously. Ghana and Uganda were successful reformers that grew rapidly and reduced poverty. Cote d'Ivoire and Ethiopia have shown significant reform in recent years, but it remains to be seen if this is sustained. In other countries policies changed little or even got worse. The paper synthesizes the findings from ten case studies that investigate whether, when, and how foreign aid has affected economic policy in Africa.

The main findings from the case studies are that:

• Policy formation is primarily driven by domestic political economy. Most major reforms have been preceded by economic and political crises.
• Large amounts of aid to countries with bad policy sustain those poor policies.
• In general donors have not discriminated effectively among different countries and different phases of the reform process. Donors tend to provide the same package of assistance everywhere and at all times.
• Aid played a significant and positive role in the two sustained reformers (Ghana, Uganda). It helped with ideas in the initial phase. Financial assistance grew as policy improved and increased the benefits of reform, helping sustain political support.
• The composition of aid is important. In the pre-reform period, technical assistance and policy dialogue are most supportive of reform. During periods of rapid reform, policy dialogue is important, as is finance. This is the phase in which conditional loans tend to be useful and effective. At a later stage of reform, conditionality is less useful, while finance remains important.
• In summary, aid in some cases has been effective in supporting policy reform, and by building on the lessons from these case studies assistance could be more systematically effective in this way.