Countries who supply foreign aid help to save lives. Foreign aid is also a benefit the donor. The education for this case has an economic impact in that; it has increased the human capital in the country which can be harnessed for the development issues Narlikar, 2003, 46. As the basic needs of the developing country are met, there is even the benefit of doing good for someone else to consider. One simple way in which the donor countries can do this is by giving tax credit to their companies that have done their investment in the developing countries. United States in trying to prevent those habits which brings corruption and tribalism in the job market it ensures that there is equality in the distribution of national resources. Some firms may even pressure the government to donate the tied aid to wealthier nations because there is a greater long-term incentive to establish relationships there instead of with low-income nations.
The developing world sometimes lacks the resources necessary to deal with internal problems. Foreign financial assistances are not always beneficial for the economy of recipient countries. There is no uniformity in the practical utilization and application of foreign financial aid. Author Muhammad Shair Ali Supervisor Mats Hagnell 1 Abstract. The Truth About Foreign Aid Trillions of dollars of developmental aid have been given to Africa over the past sixty years.
Helping businesses become competitive to access new markets? Table of Contents Abstract Ch 1 1. Giving the aid in this way to the developing countries by donors has been of great benefit to the economies of these developing countries as the donors first identifies which type of investment is eligible for the aid Bird, 1995, p. The donors offer to the developing countries incremental resources that assist during the process of change to overcome the bottlenecks. For example, more Americans donated to Haiti after the earthquake last year than tuned in to watch the Superbowl Worthington. List of Pros of Foreign Aid 1. Corrupt officials can take the aid for themselves, spend it on certain classes of people in society, or hoard them for future profit.
Foreign aid, which happens to include the. Doctors of high skills and knowledge have been sent to most of the African countries to assist in giving medical services to the African countries to help in curbing the chronic diseases. During the 1920s, there were many. This essay will discuss the concept of foreign aid. In a general perspective application of the tax system for development is a mechanism of using the incentives by the government to channel and encourage private transfers that in the developing countries has great impact in the reduction of poverty Cline, 2002, 22 To correct the problem that the donor countries cause to the developing countries by imposing the capacity development that the developing countries can not tolerated, the capacity development should be left as the responsibility of the partner countries where the donor only plays as a supportive agents toward the maintained of the capacity development.
It distributes the aids to the recipient countries on the basis of political or economic environment Stapanek, 1999, p. Hunger in many developing countries has been a big drawback towards their agenda for development. This would defeat the purpose of the intent to help the poor country become independent and not struggle as much to take care of their own people. By offering foreign aid instead, a country can maintain its borders during times of need without worrying about an invasion or trying to determine which part of it should be sold off to create a balanced budget. One of the easiest methods of doing this so, is to get another person's opinion of. Developing Countries and Regional Economic Corporation.
They have even volunteered to come and supervise elections contacted in the African countries to witness if they were fair and free elections. United states have clear set administration priorities that show the intersection of the interests of the African and American as it tries to advance the aids to the African countries Stapanek, 1999, p. The reverse is also true. Today African countries are more dependent on foreign aid than they have ever been. Consequently, they are not able to provide adequate employment to the labour in the host country. The major growth effort has to be its own.
A Small Portion of Investment: It is claimed that even under most favourable circumstances, foreign aid can only contribute a small proportion of the investment needs of a developing country. Instead, they collect treasure and set strong restrictions for citizens, what even make a situation worse. There are poor countries with corrupt officials who use the fund for themselves and that little or no aid is given to the poorest members of the communities. Also, by year 2035, the problem of poverty in Third World countries will be completely eradicated. Depends on the kind of foreign assistance - helping governments become more transparent? Their legacy of starvation, drought, deadly disease, underdevelopment, corruption, desperate poverty and violence continues to hinder Africa.
Through the United States intervention some of the wars which have been arising due to tribalism like the one of Kenya early 2008 have come to an end. It can cause donors to get involved with governing. Medical missions are there to offer free medical and healthcare products and services where they are needed the most. Due to the fact that such companies in their development agenda focus the on the bottom line, the aids from the donor countries end up reaching the indented destination. Credit rating symbols indicate both the returns expected and the risk attached to a particular issue. It is beneficial to involved countries, the donor and recipient. By working to eliminate poverty, providing nations can develop new resources in the countries that receive aid so that everyone can benefit in some way.