Abstract: The impact of massive aid transfer in the globalised world has been discussed by many economic experts. Generally, many believed that foreign aid brings benefits to recipient countries. In fact, aid is transferred based on donors’ political motives because they yearn for world influence. Besides this, ‘tied aid’ is also used as a method to strengthen donors’ economic conditions. This exhibits the ineffectiveness of foreign aid because it caused the recipient countries to consume some amount of goods and services from donor countries with overcharged prices. Simultaneously, foreign aid is used to broaden donors’ cultural values in recipient countries. Once their cultural values are applied in numerous nations, it helps the donors to become one of the dominant powers in the world. On the basis of what has been researched by the experts, it seems very likely that foreign aid benefits donor countries more than it benefits recipient countries.
List of topic keywords: Foreign aid, political interest, tied aid, cultural values, donor countries, recipient countries
Introduction
On the eve of 1970, the term ‘foreign aid’ became eminent in the world of globalization. Foreign aid is defined as an international transfer of public and private funds in the form of loans or grants from donor to recipient countries. Rich countries such as the United States of America and Australia are giving aid to many poor and developing countries mostly in the form of capital, financial resources, commodities and technical advice. However, it is argued that donor countries are gaining more benefits than recipient countries due to this activity. Professional researchers found that countries such as Nigeria and Cambodia rema...
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Before extending aid to other countries, we should focus on our more prevalent domestic problems. Patrick Buchanan said, "The idea that we should send endless streams of tax dollars all over the world, while our own country sinks slowly in an ocean of debt is, well, ludicrous. Almost every American knows it, feels it, believes it." The topic of United States foreign policy is greatly debated, and a decision on how to handle is very hard to come by. It seems as if we are finally leaning towards less aid to foreign countries, as we try to cut wasteful spending. The American government is finally opening its eyes to the realization that all of the aid we are giving out may not be worth it. Our priority should be to help our homeless, instead of other countries' poor.
... aid across the world. As we have established that we do have an obligation to redistribute globally in a cosmopolitan perspective, distributing wealth however we may need to rethink what the best assistance is. Amaryta Sen conveys that before sending aid to the third world state, we would need to fully understand the limitation of freedom in the country. Redistributing wealth to global countries requires it to be evaluated by the economic shortage that they are suffering and to see whether it will be efficient in the long run. The more effective ways to contribute would be to international relief agencies or NGO’s that would pursue international development projects to help those in poverty or the alternative option by Tom Campbell’s idea of a ‘Global humanitarian levy’ which suggests a more appropriate taxation on all citizens to collectively aid those in need.
What Foreign Aid Is There are two words that many politicians like to shy away from, and those are the ones that aren’t two words are "foreign aid. " Taking a firm stand on either side of this topic. is usually side-stepped by decision makers. Their opinions are usually based on a case-by-case analysis. This extremely controversial topic involves whether or not to support the policy of foreign aid to needy or sometimes not so needy countries.
The United States is one of the leading suppliers of Foreign Aid in the world, and even though the US gives billions, European countries give aid money to the same countries, this causes many areas of the Middle East, Africa, and Asia to be almost fully dependent on foreign aid. This means that without aid from other countries, they would not be able to support themselves at all. Foreign aid is meant to help countries that are struggling with civil unrest, disease, or natural disasters, it is not meant to help keep the country out of debt, but that is where more and more of the US and The EU’s foreign aid budget is going. The question is, does all this money actually go where it is intended? It should be going towards the government and to help the people, but in many cases, the countries government does not have the resources to properly track the flow of money. The countries in most cases have poor infrastructure and corrupt or oppressive leaders, not always at a national level, but in the towns and cities. So this means there is almost no way to oversee the flow of foreign aid through the country, all we can see is that their situations aren't getting any better and the countries are still impoverished. If this is the case, where are the millions of dollars going? Countries like Afghanistan and Iraq receive the most money from American foreign aid and European aid, yet they are still under oppressive governmental rule and there is still an extreme difference between the rich and poor. Garrett Harding’s theory of “Lifeboat Ethics” exemplifies how not giving aid to others will allow the strongest of society to thrive, while teaching the impoverished to help themselves. He believes that giving aid to poor countries will only make ...
When it comes to undeveloped countries, the discovery of valuable resources can easily lead to resource dependence (Wantchekon, 1999: Anderson, 1995, p. 33 *; Robinson, 2006). As a result, political repression and political laziness often run rampant. Under these circumstances the incumbent party is almost always re-elected because of the appeasive payoff...
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Humanitarian Intervention Hypothesis: That despite the incidents where humanitarian interventions have proved seemingly unsuccessful, they are, nonetheless, a vital tool in alleviating the human suffering that so plagues contemporary society. The post-Cold war world is one that has been riddled with conflict, suffering and war. In the face of such times, the issue of humanitarian intervention and about who, when and how it should be employed, has become hotly debated. While some critics declare this kind of intervention to be a violation of national sovereignty, others believe that relief efforts aimed at ending human suffering are perfectly justifiable. 7.
Poor countries have been receiving aid from the international community for over a century now. While such aid is supposed to be considered an act of kindness from the donor nations or international bodies, it has led to over dependence among the developing countries. They have adopted the habit of estimating and including international aid in their national budgets to reduce their balance of trade deficits. It is believed that foreign aid is necessary for poor nations in order to break the cycle of poverty that ties their citizens in low productivity zones and so their economy will not be weak. However, some critics view the extension of aid to poor countries as means of keeping the nations in economic slumber so that they can wake up from only by devising ways of furthering self-sustainability. Because of these two schools of thought concerning the topic, debate has arisen on which side is more rational and factual than the other. The non-sustainable nature of international aid, however, leaves the question of what may happen in the event that foreign aid is unavailable for the poor nations. After thorough consideration on the effects of the assistance to poor countries, it is sufficient to state that giving international aid to the poor nations is more disadvantageous than beneficial to the nations. This point is argued through an analysis of the advantages and disadvantages of giving international aid to the poor countries with appropriate examples drawn from various regions of the world to prove the stance.
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