Impact of Foreign Aid on Poverty and Economic Development in Nigeria

16050 Words Apr 1st, 2010 65 Pages
This project focuses on the poverty profile in Nigeria, the foreign aids given to the nation to help alleviate poverty and how it affects the economic development of Nigeria. According to the World Bank website, “poverty is hunger. It is lack of shelter. Poverty is being sick and not being able to see a doctor. It is not being able to go to school, not knowing how to read, and not being able to speak properly. Poverty is not having a job, and is fear for the future, and living one day at a time. It is losing a child to illness brought about by unclean water. And lastly, it is powerlessness, lack of representation and freedom.”

Poverty is the inability to achieve a certain minimum standard of living. It is
…show more content…
By 1996, it was very obvious that urban poverty had become an increasing problem in Nigeria. For example, the number of people in poverty increased from 27% in 1980 to 46% in 1985. it declined slightly to 42% in 1992, and increased very sharply to 67% in 1996. In 1999, estimates showed that over 70% of Nigerians lived in poverty. The government then declared in November 1999 that the 470 billion naira budget for the year 2000 was “to relieve poverty.”

By 1996, Nigeria had become the 13th poorest country in the world and occupied the 142nd rank on the human development index (HDI) scale. (World Bank, 1996)
With the reforms, the real growth became positive but there was still a question whether the reform alleviated poverty; how far poverty was reduced.
Foreign aid is the economic help provided to communities of countries due to the occurrence of a humanitarian crisis or for the achievement of a socioeconomic objective. There are two types of aids:
Humanitarian aid is the immediate assistance given to individuals, organizations or government for emergency relief caused by war or natural disasters. Development aid is help given by developed countries to support economic or social development in developing countries so as to create long term sustainable economic growth.
The sources of foreign aids include bilateral and multilateral aids. Bilateral aid is given by the government of one country directly to another. Multilateral aid is aid from an international
Open Document