trade aid

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Almost every day people face worldwide issues which lead to common tendencies about which people create their own opinion. Quite often we hear about financial complications and form superficial opinions about these dilemmas when people with economical education understand twofold measures and could dispute basically any suggestion simply because their experience afford to do this. Sometimes the concept of trade is mentioned as a thing which does not relate to aid. Furthermore, only in such case economic growth of an indigent country is guaranteed. However, I believe that this point of view has not been researched up to the end and in this work I will show an opposite opinion than mentioned above. In this essay I will consider trade from the governance standpoint (to what extend are the authorities of the country responsible when they get external support) and also to what extend is the situation critical situation to provide assistance.

I think these three aspects have initial importance especially in current post - economic crisis world and also when we have new damaged and even destructed economies.

Governance side
Generally, aid in any shape is a headache of developed countries, more directly of G8 (Group of eight) officials. According to the article ‘Can we Make Poverty History?’ in 2005 on the regular G8 summit issue of aid was the main. Being more exact, main obstacles of honest and efficient governance lie in the field of corruption, property rights, unofficial contracts, dishonest justice. In fact, leaders of developed countries are confident that major financial troubles come from corruption. Paradox of decay - it relates to all stages of governance: who make (government), enforce (police) and control (judiciary) l...

... middle of paper ...

...th appropriate supporting policies, governance and investment. Developing countries sometimes spend all their aid into social area which means that in future this will show no growth because this assistance was allocated into not growing sector. I noticed that befits from support is mono semantic and it varies from country to country. It is possible to suggest that unrecoverable aid does not lead to the growth and in most cases it is true. Poor countries just are not motivated to show any positive movement because they know nothing is going to be returned. However, international aid is an inevitable thing to maintain a stable world wide economic level. So this means that assistance should be invested into a reform sphere and the donor should require insurance of fulfillment. I believe that only in such connection between trade and aid will lead to economic growth.

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