Disadvantages Of Aid

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AID IMPACT: WHY CLEAR CONCLUSIONS CANNOT BE MADE
Aid, as a concept of international development, has been at the centre of countless debates and has been studied through sizeable number of research over the past several decades; yet, there is no consensus among development sector experts on whether it works or not.
Paul Mosley (1986) argues that it is difficult to measure the actual impact of Aid because of the “micro-macro paradox” which makes it almost impossible to add up the effects of individual Aid projects, given that Foreign Aid is fungible. Consequently, it can be diverted by recipient governments to less productive consumption uses (Boone, 1996).
According to the Development Assistance Committee of the OECD, most Foreign Aid is designed to meet one or more of four broad economic and development objectives, which are:
• To encourage economic growth through building infrastructure, supporting productive sectors such as agricultural production, or innovative ideas and technologies;
• To strengthen educational, health, environmental, or political systems;
• To facilitate subsistence consumption of food and other commodities,
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According to Pekka Hirvonen (2005), developed nations have not been quite truthful about the volume of Aid or assistance given to developing nations. The author argues that Aid (which is measured as a proportion of the gross national income of developed nations) lags far behind the 0.7 percent target the United Nations set more than 35 years ago (ibid). In addition to this, the Aid given is mostly: designed to serve the strategic and economic interests of the donor countries; or designed to benefit powerful domestic interest groups; or too little Aid reaches countries that most desperately need it; or is wasted on overpriced goods and services from donor countries
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