Foreign Aid In Developing Countries Essay

1406 words - 6 pages

The modern era has been going through a poverty global crisis. As time goes by, the number of people living in poverty has been increasing tremendously. In fact, the world has a total population of six billion people, where one billion people are surviving on less than one dollar each day. (Sachs, 2005, p. 20) The countries in the North are the ones who are less affected by this issue; however, poverty in the global South continues to grow. Individuals in developing countries suffer from a number of diseases such as malnutrition, HIV, malaria, anemia, tuberculosis and so forth. Moreover, this nations lack health care, education and stable jobs. According to UNICEF, “22, 000 children die each day due to poverty. “ As long as there is no effective solution, this cycle will keep growing and future generations will also be affected.
Unfortunately, the solutions proposed to fight poverty, such as foreign aid, have been more detrimental than beneficial to developing countries.

The intention of foreign aid is to foster a country’s human rights, democracy and enhance security by fighting poverty in order to establish a world of welfare ( UofT). Foreign aid has become more prevalent in recent years; however, is often corrupted and mismanaged by recipient governments, more specifically, governments in developing nations. It is important to understand the different types of foreign aid in order to evaluate the effectiveness of foreign aid. There are three main types of aid, humanitarian and emergency aid, charity- based aid, and systematic aid (Moyo, 2009, p. 7) Emergency aid is supplied in the occurrence of a natural disaster. In addition, organizations such as World Vision and OxFam distribute charity-based aid. In this paper we will focus on the third type of aid, systematic aid. Systematic aid includes multilateral and bilateral aid, and is made in form of payments. Transfers from a government to another government refer to multilateral aid, and bilateral aid is paid from an institution to a government. Bilateral aid has played a prominent role in the development of the global South. … Although developed countries have spent enormous amounts of money in providing aid to third world countries, the results obtained have not been as favourable as expected.

The long lasting debates about foreign aid have concluded that, “the volume of aid is declining” and it is currently at “its lowest level ever.” (Stiglitz) The numerous studies regarding foreign aid, have contributed to a variety of solutions and different viewpoints on the issue. The purpose of this paper is to address the effect on the relationship between foreign aid and development. Findings indicate that despite the factors that have impeded growth, foreign aid can foster some development without corruption grounded in two ideas: (1) good governance (in recipient country) (2) presence of sound economic policy and rightful institutions.

Theoretically, development assistance should...

Find Another Essay On Foreign Aid in Developing Countries

The role of foreign aid in Australia

535 words - 2 pages Foreign aid is the assistance given from a developed nation to a developing country in the form of money, equipment, skills, advice and technical expertise. There are many reasons to which a developing country or even an already developed country may require international aid such as war, a natural disasters like we recently experienced in Melbourne with the fires, or humanitarian reasons like poverty.Australia's international aid programs

Free Flow of Capital in Developing Countries

2315 words - 9 pages , and bad capital control management . This paper will tackle both the good and bad aspects of capital flows in order to further analyze the theory of capital mobility. Before continuing it is necessary to look at some of the background and purpose of capital flows. Only until around 1980, have developing countries seen this idea as positive. Before, there was the feeling that with foreign capital and aid comes foreign control

Christians' Beliefs About Problems in Developing Countries

930 words - 4 pages Christians' Beliefs About Problems in Developing Countries This essay will be focusing on two specific examples of problems which are faced by people in the Third World countries. The problems of developing countries are inter-linked with crippling poverty of the people because of: the arms race, inability to recover from natural disasters, a cycle of debt, the population explosion, unjust trading conditions

Monetary policies in the developing countries

3723 words - 15 pages the functioning of banking and financial systems, which involves foreseeing the emergence of financial panic, which can easily occur in the financial system with a wide range of intermediary institutes. The second task is to generate monetary policy stressing on certain tools with right timing.This essay is going to discuss the monetary policies in developing countries, particularly Uzbekistan and Kazakhstan, their changes throughout the period

The Proliferation of Technology in Developing Countries

1544 words - 6 pages imagination the Mac had the most innovative type face in popular computing. Analyze the current business environment and identify a new flattener not mentioned on Friedman’s list in figure 1.1 on page 4. The current “flattening of the world” brought about by the advancement of large developing countries like China and India has created a business environment that annually consumes 98,000 terawatt hours of energy. 1 terawatt hour = 1billion

Corporate Social Responsibility in Foreign Countries

1380 words - 6 pages countries. “The lack of host-country regulation and the enforcement of existing standards could potentially lead to tensions between multi-national companies and governments” (Thelder 269). For instance, if a developing country has laws that stipulate a minimum age for employment of twelve years, and a foreign company comes in with higher age requirements, this could potentially be regarded as an insult to local legislation or as the company trying to

Does Free Trade Retard or Improve Development in Developing Countries

2278 words - 9 pages of their jobs or the organisation runs out of money and folds up. Many times this happens in industrialized and non industrialized nations because foreign investors and countries can offer these products at a much deeper discount then the original country. One of the major reasons free trade is retarding developing nations is a result of greediness. Most leaders from developed nations in world organisation; IMF, WTO and a host of orders keep

E-commerce and its role in developing countries

3104 words - 12 pages to foreign investors. Thus, building confidence in the government and re-assuring them. Though much more needs to be done in cross- border trading, WTO and GATS is helping countries benefit from e-commerce.E-COMMERCE IN DEVELOPING COUNTRIESBelief in the benefits of e-commerce has led to the adoption of e-commerce by developing countries. It helps developing countries by improving relationships across the value chain, increasing market reach, and

MNCs IMPACT ON LABOUR STANDARDS IN DEVELOPING COUNTRIES

2974 words - 12 pages MNCs IMPACT ON LABOUR STANDARDS IN DEVELOPING COUNTRIESINTRODUCTIONGlobalization has increased the economic power of the multinational corporations (MNCs), especially in developing countries where MNCs have shaped the economy through foreign direct investment (FDI), knowledge transfer, influence on employment rates and strong competition within the domestic market. Additionally, MNCs have a direct impact on the economic, political, and social

Developing Health Policies in Developed and Undeveloped Countries

1009 words - 4 pages Developing Health Policies in Developed and Undeveloped Countries The purpose of this paper is to review some of the literature available surrounding the complexities of developing health policies in both developed and developing countries. Comparative Health Systems: Global Perspectives in the 21st Century Johnson and Stoskopf (2008) converse in detail the complexities involved in creating health policies in developed and developing or

Can Micro Loans Help Reduce Poverty in Developing Countries?

1329 words - 6 pages Micro Loans in Developing Countries: Can Micro Loans help in Reduce Poverty The word poverty came from the Anglo-Norman word povert. Poverty is predominantly seen in the developing nations. Poverty is a where people lack their basic capacity to participate effectively in society i.e. Not having enough money to provide food and clothes to their family, not being able to work and earn for themselves. There are many reasons for poverty in

Similar Essays

America Must Provide Foreign Aid To Poor Countries

2239 words - 9 pages America Must Provide Aid to Poor Countries        Eliam Diamond lives on the shores of Lake Malawi.  Diamond is a weaver, making mats out of dried palm leaves.  A six-foot sleeping mat takes him four days to make and sells for as little as four cents, not enough to buy what little food there is in Malawi.  So he relies on handouts.  A few days ago, Diamond picked up his monthly ration of donated U.S. corn from the World Food

Mitigating Disasters In Developing Countries Essay

2299 words - 9 pages The focus of this essay however will be on developing countries and the alternatives available to mitigate natural and man-made disasters that are available to policymakers. Developing countries are in general countries which have not achieved a significant degree of industrialization relative to their populations, and which have, in most cases a medium to low standard of living. There is a strong correlation between low income and high

Child Soldiers In Developing Countries Essay

728 words - 3 pages help the children heal from wounds like rape. World Vision is a Christian humanitarian organization. They help to provide support, opportunities and more to children and their families who have been affected by war and poverty. They are very diverse in the countries and people they help. Providing help in almost 100 countries, they aid people regardless of their background. Why go help others and possible make you a target for countries supporting

Military Leaders In Developing Countries Essay

1482 words - 6 pages Military Leaders in Developing Countries The role of the military in any country is one of prestige. Unless having been through it personally, one could not imagine willingly subjecting oneself to the rigorous training received by so many young men and women today. The role played by the military is always to protect, defend, and assist its country in both war and peacetime, but in developing nations there are quite different roles as well