Advantages And Disadvantages Of Foreign Aid

Foreign aid Bad or Good

Foreign aid or assistance is often considered as being too much, or it is wasted on corrupt recipient governments despite any good intentions from donor countries. In reality, aid have been poor in quantity and quality and donor nations have not been held to account. We can’t say it’s an aid it’s only a trade. It’s an important part of development . But aid have been criticized in the issue of international obligations, as an excuse for rich countries to stop the aid that has been agreed and promised at the United Nations. Recently, there was a pledge to spend 0.56% of GNI on poverty reduction by 2010, and 0.7% by this year . However, 0.7% of GNP were spent by the donor governments as promised. 1970 was the deadline

Measured as a proportion of GNI, aid lags for behind the 0.8 percent target the United Nations 46 years ago. In many cases; to be helpful to the strategic and economic interests of the donor countries(rich countries) we have came up with the idea of aid. Or we have came up with it to benefit powerful domestic interest groups. Countries that most desperately need aid reaches too little of it. All too often, aid is wasted on overpriced goods and services from donor countries. despite all indications that aid fails, a dominant position in aid granting countries and aid agencies is that the aid is helpful to recipient countries. This conviction is based on prejudices, wishful thinking or biased evaluation. Evidences show that foreign aid has no tangible impact on the long-term economic growth and improvement of conditions in target countries. This is in accord with a broader conviction that central planning that never ended poverty. Evaluation has a task and it is to hide failure and damage by reporting some degree of

the record shows, that without good institutions, in a recipient developing country, aid have a detrimental impact on the quality of governance. In the absence of these strong institutions, we should dedicate assistance efforts to improve the quality of governance before they can be effectively devoted to any economic development effort. Although more progress has been made over the course of the last 50 or so years in alleviating poverty than during any comparable period of time in history, poverty remains a huge global challenge. Over one billion of the world’s people live in conditions of poverty, surviving on less than $1 a day. What donors want aid buys (such as political support and economic advantage) The rich countries need to show that they support poor countries ,then certainly greater risk: accept fairer trade rules, adapt rapidly to climate change and resource scarcity we limit our consumption, accept the employment consequences of a more just arms trade, clamp down on tax havens and force our international companies to abide by social, environmental and accounting norms. Being so generous requires rich countries to undergo fairly profound changes in the way they have lived for the last few decades. The notion that giving away our loose change is embarrassingly generous would be an odd one to poor people around the world trying