The Benefits Of Foreign Aid

Some of the main reasons why Australia provides foreign aid is to increase advanced systems and technology in other countries, decrease poverty, make other countries more stable generally and financially, etc. Some government and non-government organization like Department of Foreign Affairs and Trade (DFAT), AusAID, World vision, Red cross, etc. also help provide foreign aid to other countries. Australia’s 10 main focus points and the status of achievement for some of the following in providing aid to other countries are towards the following:

There are two main perspectives on foreign aid in Australia – are we giving too much or not enough? Foreign aid is given to developing countries, and is necessary to build an environment where policies and infrastructure can be in place to support other sources of finance. Australia is part of the worldwide foreign aid commitment as we value that everyone should have a fair go, and the country plans to give $3.9 billion over 2017 and 2018. We help countries in need by contributing, food, resources, providing financial assistance, exchanging goods, personal time and knowledge. The main types of aid are humanitarian aid, which is disaster relief and emergency aid and development aid, which is a long-term commitment between nations. Australian aid is strongly on development aid particularly focused on the Asia-Pacific region, but it also has a strong commitment to African and South Asia. Interestingly, 90% of Australia’s foreign aid goes to Asia-Pacific countries such as Indonesia and Papua New Guinea, because if they build into a developed nation, then we can build trade relations, regional security and partner in defence. This is a polarizing issue that divides the nation due to different views on Australia giving aid, however, a strong foreign aid program is vital for Australia to build successful relations and regional security.

Many skeptics challenge the reasoning for investing so much money into helping so many other countries when that money could instead help us improve internal affairs. After all, foreign aid spending has increased to $50 billion a year today, which could be put towards funding education to ensure that more kids go to college and possibly affecting the innovation of the future(Morris). Giving more than you receive is nice, but when it involves a country 's financial crisis, maybe it 's best if Santa cuts back some of this year 's presents. And although the argument may be valid, lending out a helping hand can create more allies than enemies to help us in return when we need it. In fact, foreign aid only accounts for 0.5 percent of the federal budget (Stearn). Compared to all the other matters at hand that the government is worrying about, the amount of spending put into aiding poorer countries is positive in both a moral aspect and a political aspect.

Ever had that one friend? The one who tries to help, but no matter how hard he tries, he just aggravates the situation. This friend, Steve, insists he is helping, and those around, too, would support that he is indeed helping. But Steve is actually worsening the circumstances. He is like countries who provide foreign aid to less developed countries. Foreign aid, defined as “the international transfer of capital, goods, or services from a country or international organization for the benefit of the recipient country or its population,” can be military, economic, or humanitarian (“Foreign”). It is often granted to less developed countries in order to evoke government reforms or to stimulate economic growth. However, foreign aid neither elicits government reform, nor does it consistently and reliably stimulate economic growth; therefore, the United States should discontinue providing foreign economic aid.

Foreign aid is a term referring to resources and money lent out or given to a ‘recipient nation’ who is in need by a wealthier ‘donor country’. This can be given either in long term ‘humanitarian aid’, aimed at improving the welfare and development of the human population, or short term ‘emergency aid’ focused on providing the daily necessities to a population after a war, or natural disaster. Despite common belief, the purpose of foreign aid is not only to help countries which are in need, but also to achieve a range of social, economic, cultural and geopolitical goals that will benefit our national interest. Australia is currently the largest foreign aid donor of its nearest neighbour,

Riddell, Roger C. 2007. Does Foreign Aid Really Work? 1st ed. OXFORD: Oxford University Press, USA.

Aid has never been an altruistic process; countries have always given aid to areas that best further their own national interests. Countries give aid for a number of reasons; they range from securing political connections to creating more favourable trade routes. Pure altruism is never the number one reason a country gives aid, and Australia is no exception. National interest lies at the core of all of Australia’s foreign aid policies, (DFAT 2015). As a nation Australia would most benefit from concentrating her aid on the Indo-Pacific region. Providing the nations within Australia’s regional neighbourhood with aid results in economic growth for both Australia and her aid recipients. Aid also stabilises trade and security within the region,

The main point of Banerjee and Duflo’s Poor Economics (2012) is that aid is neither good nor bad: there are instances where it can help greatly and instances where it can fail those it seeks to help(4). Aid is a powerful tool, therefore it’s imperative that we carefully select the right types of projects (Banerjee & Duflo, 2012, p. 4-5). Banerjee and Duflo (2012) present a few key points of action as a framework for approaching aid, with the broadest issue being the idea that too much responsibility is placed on the poor in making the most basic decisions (268-69). One example that Banerjee and Duflo (2012) offer is the fact that many of the poorest people don’t have sanitary water

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

The trouble with aid reveals, over time government in start to lose their sovereignty as they keep receiving aid. The aid created restrictions by the government because of the regulations of placed by those giving the donations. For they have a certain idea of how and where the money should be spent. This reduces the accountability of the government to its people and gives more agency in countries to while reducing the agency of the local government to intervene their rule of a state.

cases, those resources can be used for a country to develop their economic, technical, or military status. Foreign aid could also be applied toward assisting a country in desperate need of help, for some reasons as serious as natural disasters, downfall in the economy, or even loss of jobs. The idea of foreign aid is to assist in getting countries to a position to support themselves and their people. Foreign aid has controlled discussion in recent years as demand and need for it has continually increased for countries all around the world. For years foreign

Unprecedented increases in living standards came with large increases in income inequality, both between countries and between individuals (p. 167). Too much inequality will create a wealth and power imbalance that stymies growth and development. Similarly, his acknowledgement of the fragility of the successes achieved in the developed world are prescient; there is nothing to say that the alleviation of poverty, deprivation, and poor health will continue forever, and any number of threats – including climate change, political failures, epidemics, and warfare – could bring it to an end. However, in the final chapter, titled “How to Help Those Left Behind”, his arguments are far less compelling. Deaton’s perspective on foreign aid and its efficacy is narrowly defined, and his claim that foreign aid is doing more harm to developing economies than good does not consider development successes that occur on the

Australia’s aid program has many benefits to the Australian people and our economy. The aid program is used to promote Australia’s national interests through contributing to economic growth and poverty reduction. The aid program originally did not have a strong focus on promoting economic growth, but now Australia does have that strong focus. Through helping people overcome poverty, Australia increases Australia’s national interests by promoting stability and prosperity both in Australia and overseas.

Foreign aid is offered for many purposes and ways and the dilemma of aid is not whether aid works or not, but how and when varied instrument can be made to work better in different country circumstances (Hansen and Tarp 2000, pp. 19-20). Another study conducted by Minoiu and Reddy argues that aid matters for economical growth and it can contribute significantly, but only specific kinds of aid have clear cut impact on growth and only in a long term. Overall, foreign aid has a significant effect in those cases when it ranks high in the aid quality index while geopolitical aid has been found with zero or negative effect on

The history of international development aid can be tracked down to antiquity, however, the modern era saw international development aid begin to evolve in the 19th and early 20th century (Kapur, 2003) but the true expansion of international development aid was in the aftermath of the Second World War. The most significant events in accordance with the establishment of international development aid were the creation of The United Nations, The Marshall Plan, and The Bretton Woods conference that established the World Bank and the IMF. The modern manifestation of international development aid is extremely widespread. There are countless international organizations and governments present which all contribute to international development aid as it is a moral responsibility, however, what is the effectiveness of the aid they provide? This paper argues