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Pros and Cons of Foreign aid You are here: Pros and Cons of… Foreign aid has brought both blessings and curses to the recipient countries, aid brings harm to the countries that are in need of it considering the fact that aid perpetuates the dependency syndrome, financial aid by the Bretton The pros and cons of welfare essay institution leaves poor countries heavily indebted, foreign aid results in loss of political and economic independence, there is risk of corruption as aid does not go to the people intended, aid comes with a hidden agenda of foreign owned Corporations.
To begin with foreign aid is the voluntary transfer of public resources from a government to another independent government, non-governmental organizations and to international organizations.
The term foreign aid refers only to official development assistance ODA. ODA is defined as the flow of official financing to the developing world that is concessional in character namely grants and loans with at least a 25 percent grant component, ODA is generally administered with the objective of promoting the economic development and welfare of developing countries and comprises both bilateral aid that flows directly from donor to recipient governments and multilateral aid that is channeled through an intermediary lending institution like the World Bank since the third world lack capital necessary for making income generating investments.
Moreover, while it is common to treat ODA and foreign aid as the same thing this is misleading. Assistance funded by non-governmental organizations is foreign aid but not ODA. The above definition indicates that foreign aid is not always a free resource transfer and often arrives with economic and political conditions Roger, In many cases official donors require that recipient countries to pursue reforms or policies that the donors feel should promote economic growth or development in their own countries and this reduces its effectiveness.
To add on foreign aid is being attributed for bringing harm than good to countries that are most in need of it considering the fact that aid whether in the form of financial, economic, social and political assistance perpetuates the dependency syndrome David, The dependency syndrome is an attitude and belief that a group cannot solve its own problems without outside help.
Furthermore, aid is being blamed for causing more harm than good to countries that are in need of assistance considering the fact that aid on itself does not bring development of the poor countries for instance financial aid given by international institutions such as the international monetary fund IMF and the world bank is paid back in higher interests for instance Giving financial aid like loans only leave these poor countries deeper in debt and poverty William, Therefore, in this view one may agree to the fact that aid has brought more harm than good as financial aid leaves the borrowing country heavily in debts.
In addition foreign assistance and aid has brought more harm than good in the recipient country basing on the fact that there is risk of corruption as aid does not go to the intended people, there is a higher likelihood that foreign financial support do not reach the rightful recipients but go to the hands of corrupt political officials.
Opponents of financial aid argues that in most cases help fails to reach the right people who are really in need of assistance as in most cases poor countries are characterized by corrupt officials who use the funds for themselves at the expense of the poorest members of the communities Moyo, Whereas in most cases there is a hidden agenda of foreign owned Corporations rendering aid for instance aid is sometimes given to a country or recipient to benefit foreign owned corporations and entities.
Donor countries with selfish interests will donate to countries especially the nations with bountiful natural resources and try to exploit them they would provide funds to bring a particular country to get influenced and force them to serve military interests and other interests therefore donor nations may do evil things like dump toxic wastes, harm local environments and destroy their local culture therefore the help is not actually directed to the less fortunate but to its own people hence in this regard one may say that aid has brought more harm than good.
Furthermore, poor countries tend to rely on foreign aid and international exchange. To add on aid results in political bondage and lack of political sovereignty in the recipient country considering Gibson, In addition foreign aid has been of much benefit in the recipient countries for instance foreign humanitarian aid in times of disasters can help save lives and ease the impact of disasters.
Humanitarian aid represents a commitment to support vulnerable host populations that have experienced a sudden emergency and requiring ongoing assistance to maintain or improve their quality of life. Whereas to add on financial loans provided by the IMF and World Bank accelerates industrialization and development programs in poor countries since governments in richer countries of the world have become increasingly aware of economic problems of their poorer neighbors.
Walker and Maxwell, Foreign aid from developed countries and international organizations has become an important solution to the development of the human and material resources of these countries as the cure for the ills of underdevelopment with its high degree of success related to the high degree of foreign capital investment.
Foreign aid has already become a universal panacea in industrialization and many developing countries have benefited from foreign aid. There are different forms of aids being offered by foreign governments and firms most of them would help in the creation of millions of job opportunities and teach new technology or management experience to undeveloped countries.
It may be impossible to many modern factories operating without foreign technology whereas undeveloped countries governments are supported by foreign financial aid like World Bank hence in this regard foreign aid is very much beneficial to the development of the recipient country as shown above.
Moreover foreign aid is necessary in improving international relations since the humanitarian response of the international community has improved international relations dramatically and is a sign of goodwill and cooperation moreover foreign aid significantly gives a clear indication that the developed countries consider closer ties with developing countries in their economic and strategic interest for instance there has been significant bilateral agreements between China and Japan which aim provide technological, construction materials and machine parts in return for coal and crude oil by free or low price.
In response, Japan and China adopted strikingly complementary foreign policies therefore in this regard one may view foreign aid as necessary for the development of the recipient country as aid helps in establishing bilateral agreements and international relations.
Conclusively aid has brought more harm than good to the recipient countries considering the fact that it results in political and economic oppression as the donor countries engage in activities that disrupt political stability in the recipient country whilst looting economic resources back to their home countries, aid perpetuates the dependency syndrome that results in little or no development at all whereas foreign aid in most instances does not reach the intended targets as it is intercepted by corrupt political officials that utilize the resources to their own benefit however it is also imperative to put in mind that foreign aid is beneficial in terms of encouraging development in the recipient country, food relief programs ease the impacts of natural disasters such as droughts whilst aid helps in establishing trade and bilateral international relations between countries.% ORIGINAL WORK Original pieces of writing.
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