Essay on The Effect of Foreign Aid on Developing Countries
2322 Words10 Pages
INTRODUCTION What is the impact of foreign aid on the well being of people living in developing countries? Is foreign aid achieving its intended goal of reducing poverty, is it increasing poverty or has no overall impact on poverty level in these countries? If foreign aid has both positive and negative effect on the recipient country, then which effect outweighs the other? Is it the positive or the negative effect?
Looking at the existing literature, foreign aid is usually defined as the act of the giving money, food, and other resources from one country to another, either direct or indirect through international organizations in return for nothing. Every year, millions of Dollars, Pounds and Euros flow from western countries to…show more content…
According to Alvi, E., & Senbeta (2012), they argue that poverty levels in the Sub-Saharan Region of Africa, Asia and Southern America could have been worse if not for foreign aid. Different economics model such as “ the Solow growth model” indicate that for a country to sustain long run development it needs labor and capital accumulation. Capital accumulation comes from Savings. Since most of these developing countries fail to save, Aid act as the cover for saving there by fueling economics growth.
In contrast, Dembisa Moyo (2009), states that despite increase in foreign aid, African countries have reported a significant increase in poverty levels. A large portion of this aid ends up in the pockets of few, greedy, top government official who don’t care about the welfare of the society but care about self-enrichment and self-fulfillment. Most of if not all former African heads of state are either answering Corruption or Criminal charges. Example includes; Bakiri Muluzi former President of Malawi, Zambia’s former president Rupiah Banda Just to mention a few. This can be supported by evidence that no former head of state from Africa was able to win the “Mo Ibrahim Prize for Achievement in African Leadership” for the past four years.
The main aim of this research topic is to carry out analysis of whether foreign aid fuels economic development or hinders it instead. If indeed foreign aid reduces poverty
Professionals: MORE than 1 billion people live in utmost poorness. If targeted efficaciously. foreign assistance can do a positive part to bettering people’s lives. cut downing inequality and advancing justness. A cardinal rule for effectual assistance is that it should be focused on cut downing poorness and be driven by those whose demands are being addressed. In other words. the involvements and rights of the hapless and marginalized must be at the centre of any plan. First. in human-centered exigencies. lives are at interest. When people are in despairing demand of nutrient. H2O. medical attention and shelter as a consequence of dearth. struggle or natural catastrophe. who else will assist? Such pressing aid is the duty of states and organisations that have the capacity to make so. In 1992 in Somalia the lives of despairing adult females and kids were saved as a consequence of foreign assistance. Foreign assistance improves criterions in the proviso of wellness attention. instruction and substructure. therefore making the foundation for economic and societal development.
Human-centered support is critical for the 3rd universe states. As a consequence of highly low criterions of life. people in such states feel a immense deficiency of nutrient and medical specialty. Therefore. the demand of international Aid is undoubted. Foreign assistance is an effort to alleviate agony. Many provinces do non hold the substructure for an advanced economic system. and assistance is a agency to help the province in making lasting solutions to jobs linked to poverty. Aid can besides be a good manner of organizing strong relationships with other states ; kerb terrorist act and derive political will for planetary issues and trades but these are in the purest sense of assistance non its intent.
Cons: I don’t know of any state in the universe where a clump of aliens came and developed the state. I don’t know one: Japan? Korea? No! No state did that. I know about states that developed on trade and invention and concern. – Herman Chinery-Hesse
The simple reply to this inquiry is No. ”FOR God’s interest. delight halt the assistance. ” This is the call from Africa. To the statement that the West wants to extinguish hungriness and poorness through assistance. James Shikwati. a Kenyan. replies: ”Such purposes have been damaging our continent for the past 40 old ages. If the industrial states truly want to assist the Africans. they should eventually end this atrocious assistance. The states that have collected the most development assistance are besides the 1s that are in the worst form. Despite the one million millions that have poured into Africa. the continent remains hapless. ” From flawed substructure undertakings to help given to dictators. there are many illustrations of failure. Of class. there are besides illustrations of success. But the failures are a reminder: success is non guaranteed.
Read Also: D.A.R.E. Report
Many surveies of assistance effectivity have been undertaken. Some conclude that assistance can hold positive effects. if combined with strong pro-development authorities policies. Many more show a negative impact of assistance on economic and societal development. Which means the existent inquiry is non whether assistance does more injury than good. It is: ”How do we guarantee assistance plants? ” There are three simple regulations of pollex for better assistance:
Aid should be given with good purposes. Some of its worst failures have occurred when it was given for geostrategic grounds. or given in ways designed to profit concerns in affluent states. Different things work in different topographic points. Just like Tolstoy’s unhappy households. no two hapless states are likewise. Aid needs to follow context. non formula. Learning is of import. Agencies need to give resources to research and to larning from experience. Encouragingly. many givers are bettering in these and other of import countries. Yet others slowdown and there is still much to be done.