Every year, the United States of America spends 37.68 billion dollars on foreign aid, more than any other country gives (Escobar 10). Why does the U.S. spend so much on foreign aid, and is it a good thing? This paper looks at the U.S.’s policies on spending money on development abroad, and explores whether it is successfully helps underdeveloped countries or not. Even though the USA and other Western countries give a lot of money to underdeveloped countries, they have ulterior motives; thus foreign aid is not a totally good thing and it can even be a bad thing. The U.S. promotes development abroad in two ways: with official donations of money through USAID (United States Agency for International Development), the World Bank, the International Monetary Fund (IMF), and the United Nations; and through non-governmental organizations (NGOs) (6). The U.S. gives about 1% of its budget to foreign aid (6). This figure also includes military aid. Out of all the countries receiving aid, Egypt and Israel receive the most (this is because the U.S. has strategic and military interests in those areas) (Pawson 112). The USAID website states: “U.S. foreign assistance has always had the twofold purpose of furthering America’s foreign policy interests in expanding democracy and free markets while improving the lives of the citizens of the developing world” (112). Additionally, 80% of the money USAID gives goes to American NGOs and companies (112). The goal of the development aid industry is to make America seem like a good country that is doing good things. However, it is also part of America’s imperial foreign policy.
The integration of international communications and trades, the flourishing peril of global terrorism, the surge of HIV/AIDS, the growing poverty in developing countries, transnational crimes and nuclear weapons – all are hallmarks of a germinated 21st century outlook for alteration and adjustment. Given many menaces to national security in the post-Cold War and especially post-9/11 terrorism, Americans now understand that the security of their homeland greatly depends on civilization, freedom, and development beyond other nations. Since Congress passed the Marshall Plan in 1948 and the Foreign Assistance Act in 1961, the U.S. has been well-known worldwide for its commodious overseas contribution. Nevertheless, this renown is inevitably questioned. What did the U.S. really accomplished? Or the effort was just a gilded, counterfeit mask?
The first reasons to think that foreign aid should be spend is that “Aid saves lives” which is clearly illustrated by the researches conducted. Compare 1990 to 2010, as a result of aid in vaccines and health, there was a decrease in number of children who died from illness of pneumonia and diarrhoea (BBC). For example, in Botswana, the foreign aid fund had provided a test of HIV for pregnant mothers and therefore decrease the amount of newborn babies which catches HIV. Furthermore, in Bangladesh, there is a 62% drop in death rate for the under five children, the aid fund allows the government to be able to afford “vaccines and trained the midwives”.
These differing opinions have led to the emergence of two contending theories. The first, championed by Sachs (2005), is that foreign aid is key to leading countries out of poverty traps by kick-starting a virtuous cycle; investing in crucial areas and making them more productive, generating further investments with the increased income and so on. Others (Easterly 2006 and Moyo 2009) argue that aid does far more bad than good; by forcing solutions on people, hence preventing them from finding and using their own, and by corrupting and undermining local institutions.
The Cons of U.S. Foreign Aid
As time progresses humankind seeks to better itself. We strive to make life easier, faster, and more efficient. Currently we have telescopes that can see objects light years away, satellites that can track you around the planet, cars that adjust the seat and steering wheel to separate drivers, and computers that fit in your hand and perform a million calculations a second. But not everyone in this world has this technology. In parts of the world there are people who are still advancing, they are hundreds of years behind the technological leaders of this world.
What Foreign Aid Is
There are two words that many politicians like to shy away from, and those
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. What benefits does foreign aid have for the countries that receive
it, and does it have any benefits for the countries who give?
American politics, specifically, American foreign policy is a very controversial topic of study and subsequent discussion. Foreign aid, defined by the Merriam-Webster dictionary as “the transfer of capital goods from one country to another”, is crucial to U.S. foreign policy. But how can foreign aid, which represents only about 0.2 percent of Gross National Product and less than 1 percent of the federal budget , be important to something as crucial as foreign policy? A few questions must be asked in order to shed some light on this. First, how does the donating nation (for the purpose of this paper, the U.S. and donor/donating country/nation will be used interchangeably) determine how much aid to give? Second, who actually gets the aid? And third, how much aid do the recipient nations receive? Looking back on history and within modern times, the neediest of nations are the not the ones, which receive foreign aid (McKinlay and Little, 1977). In fact, foreign aid can be described as a trade for specific political concessions, which benefit the donor country. How the determination of which country receives foreign aid is usually dependent on the strategic importance to the donor country (as a modern example let us use Egypt, which is in the top five of the countries, which receive the most U.S. foreign aid. Egypt is in a strategic location, in close proximity to Israel). How much aid is actually given will depend on a number of factors, including the current state of affairs in the donor country and any prevailing fears of the time (i.e. the spread of communism during the Cold War, terrorism, etc.). In order to determine how much aid is given, I will draw from the selectorate theory, particularly, from the winning coalition, which is...
The U.S. sometimes helps other countries that are underdeveloped, economically speaking. And while those countries who receive the help benefit from it, there issue still stands whether or not helping these countries is the right thing to do. Many U.S. citizens believe that it is America’s responsibility as a developed country to aid lesser developed and struggling countries. Others believe that the U.S. should focus on it’s own economic struggles before tending to anyone else's needs. I agree with the former.
This article describes the flaws and weaknesses of the traditional aid model as implemented by the U.S. Agency for International Development (USAID), and proposes that all US foreign aid policy be implemented following the Millennium Challenge Corporation (MCC) approach. In this critique, I will analyze the method used by the Heritage Foundation to analyze US foreign aid policy and determine whether or not it followed the policy analysis process as described by the literature.
Although trillions of dollars are being poured into impoverished countries the situation has not progressed much if at all. (1)“Trillions of dollars in aid over the last sixty years has been ineffective and has been unable to lift the poorest countries out of extreme poverty. Much of it ends up in rich African’s UK or European bank accounts and does not even help their local economy” (Malawi in Central Africa Is One of the Poorest Countries in the World). Take the example of a child who told his father every time before he played outside his shoe was untied. The father in return tied the shoe each time. What got accomplished? The child’s shoe is tied. The child’s request is fulfilled. The child then becomes dependent upon his father to get his shoe tied. In the end, the child never learned how to tie his own shoe. In the same way, if money is constantly being dumped on impoverished countries the problem will never be fixed.