What Role Does Foreign Aid Play? Developing Countries?

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What Role Does Foreign Aid Play in Developing Countries? Many countries around the world receive foreign aid from the United States and other developed countries every year in large sums. This money is dispersed throughout the receiving country, it is the hope of the United States that this will help to create development economically and politically as well as promote the belief of democracy in these countries. The aid is intended to enhance infrastructure within the country so local institutions will be able to create policies to enhance their country. However, this does not always occur in the countries that receive this aid. This is specifically not the case in countries in sub-Saharan Africa that have won their freedom from colonial powers in the last 50 years. The issue of foreign aid in Africa is a major debate that is taking place in the world today most likely because of the lack of developed democratic regimes that exist on the continent today, especially in Sub-Saharan Africa. There have been many studies taking place over foreign aid and sub-Saharan Africa since foreign aid initially began after World War 2. Many authors today have begun to ask the question, “Is Africa Different?” (Asiedu 2002). The Foreign Direct Investment(FDI) in the past decade has grown exponentially to 61 percent from the previous 24 percent in 1990. Africa, while seeing a significant increase in amount of investment, still has not seen anywhere near the level of investment that other
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