The Effects Of Foreign Aid On Developing Countries Essay

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.

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

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.

On one side of the issue the supporters of developmental aid believe that the United States is doing more than a great job by offering economic assistance to countries that need help to develop. These individuals are aware of the unfortunate poverty levels in many countries abroad. They believe that it is the duty of the American people to help reduce the poverty levels in countries in which people live with less than a dollar a day. In fact, some supporters believe that the U.S. is not offering enough support to the poorer countries. Many have

During the late 1700s, Adam Smith and Thomas Malthus each entered their predictions on the future of the world’s economies into the history books. In his writings in An Inquiry into the Nature and Causes of the Wealth of Nations, Smith theorized that national economies could be continuously improved by means of the division of labor, efficient production of goods, and international trade. In An Essay on the Principle of Population, Thomas Malthus predicted that the sustainable production of food in relation to population was vital to the mere existence of national economies in order to ensure an able labor force. Smith believed that the success or

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

"Between 1945 and 1983 the U.S. gave away $321 billion in foreign assistance, concessional loans, military aid, and humanitarian assistance." (Cato Policy Report, 1991) The Clinton administration task force admitted that, "Despite decades of foreign assistance, most of Africa and parts of Latin America, Asia and the Middle East are economically worse off today than they were 20 years ago." (Conservative Chronicle, 1994) United States financial aid does not help the problem it stabilizes it until it's withdrawn.

According the US Census Bureau, the United States spent $44.957 billion on foreign aid in 2009, in terms of total foreign assistance. Of that, just over $11 billion was military assistance. The nations that received the most foreign aid were Afghanistan, Iraq, Israel and Pakistan. Some aid went to financial institutions and to aid agencies, and therefore is difficult to classify by country. By regions, Asia, Sub-Saharan Africa and the Middle East were the biggest recipients of foreign aid. The recipients and types of foreign aid are indicative of priorities that the US government has with respect to foreign relations. As many people applaud high levels of foreign aid from the US to poor countries around the world, foreign aid also has its critics. From a domestic perspective, criticisms include the argument that this money would be better used in the United States, and the libertarian argument against all forms of foreign aid in general. It is worth noting that many critics of foreign aid still support aid to support military objectives, which includes the four largest recipient of aid (Traub, 2011). External critics of foreign aid argue that such aid has generally failed to achieve its objectives, for a variety of reasons ranging from rapidly increasing populations to corruption to the promotion of dependency relationships (Bovard, 1986). This paper will analyze US foreign aid in the context of its success and failures and make the case that the United States

     Eliam Diamond lives on the shores of Lake Malawi.  Diamond is a weaver, making mats out of dried palm leaves.  A six-foot sleeping mat takes him four days to make and sells for as little as four cents, not enough to buy what little food there is in Malawi.  So he relies on handouts.  A few days ago, Diamond picked up his monthly ration of donated U.S. corn from the World Food Programme (WFP) at the Ngodzi distribution center near his village, carrying home the 110-pound bags tied to his bicycle (Harman).

Poverty has many faces, changing from place to place and across time, and has been described in many ways. Applied ethics is a person’s judgement on a moral standpoint, of a particular issue in private and public life. In class we learned about four different philosophers and their views on world poverty. I agreed with two philosophers that have different views, but they both had the same opinion that the United States should stop sending aid to foreign countries. In this essay my view is that the United States should stop sending aid to foreign countries. I will defend my view against poverty by discussing Garret Hardin and, James Shikwati views on poverty, and how the United States and other countries will benefit from not sending aid.

Former Homeland Security Secretary Tom Ridge claims that the foreign aid spending is just as essential to safety as defense programs spending, those programs are essential to diplomacy and targeting roots causes of terrorism.

“Benefits of foreign aid have recently been under severe scrutiny. Several observers argue that a large portion of foreign aid flow from developed to developing countries is wasted and increases unproductive public consumption. Poor institutional development, corruption,

Most of the developing countries are mired deeply in economical obstacles, which prevent them from development significantly. In order to overcome those embarrassments world’s society struggles to find the efficient solution for poor countries’ economies. Historically, developed countries undertook policy of giving aid to their colonies, afterwards by the end of The Second World War the United States and United Nations embarked the global sponsorship to the developing countries and countries of the Third World due to humanitarian considerations. Since then many other countries have joined in the effort to provide financial aid to lesser developed or poverty ridden countries. But none of those countries that received an aid had experienced a prosperity phase and rapid economic growth.

Over the last 50 years, the world has struggled to maintain an economic balance and stability, while flourishing countries try to maintain a steady income to support its people and relations with other countries. Therefore, when a continent like Africa fails to maintain a stable government and economy, super powers such as America decide to intervene with its relations. Africa has great potential to become another pillar of the world’s economic structure with its mass amounts of uncultivated land. Unfortunately, corruption and irresponsible governments hinder that progress. Foreign aid while helpful should be limited to a yearly amount because it allows the government to repudiate responsibility and gives room for corruption; it creates a

Harvard Business School’s Case Study “Aid, Debt Relief, and Trade: An agenda for fighting World Poverty” outlines the steps, and missteps, that the world community has taken since World War II to address the efficacy of international assistance. The study focuses on international financial institutions (IFIs) and their ability to help poor nations break out of poverty and the possible obligations of rich, developed countries to assist the heavily indebted poor countries (HIPCs). Additionally, the study seeks to see if this assistance has been and can be parlayed into growth and investment for the HIPCs.