Advantages Of Foreign Aid

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Foreign aid has been used, particularly in poorer countries, to fund or to monitor elections, to facilitate judicial reforms, and to assist the activities of human rights organizations and labour groups. Foreign aid is also used to address transnational problems such as the production and export of illegal drugs and the battle against HIV/AIDS. 1988 make foreign aid and access to U.S. markets conditional upon recipient countries’ actively combatting drug production and trafficking. (Williams, 2015) Why foreign aid and ODA fail to overcome poverty and the impacts on recipients Foreign aid and development assistance are often regarded as being too much, or wasted on corrupt recipient governments despite any good intentions from donor countries.…show more content…
Instead of creating new businesses and jobs in recipient countries, most of the benefits remain in the donor nations. Tied aid is also inefficient because often goods and services would be available at a lower price from local producers or world markets. The South Africa-based NGO Action Aid estimates that $5 billion in aid goes wasted each year because tied aid inflates procurement costs. Furthermore, tying can slow aid down, as a lot of time goes wasted in complicated procurement procedures even in severe emergency situations (Pekka, 2005) Advantages of ODA and foreign aid 1. Save Lives. At the onset, foreign aid is there to save lives particularly during calamities and disasters, like in the case of natural disasters. 2. Rebuild Livelihoods. Foreign aid helps rebuild lives by providing livelihoods and housing right after a disaster so that victims can start over. 3. Provide Medicines. Medical missions are there to offer free medical and healthcare products and services where they are needed the most. 4. Aids Agriculture. Foreign support directed towards agriculture helps farmers and increase food production, which leads to better quality of life and higher quantity of…show more content…
(Anon., 2016) Disadvantages of foreign aid and ODA 1. Increase Dependency. Less economically developed countries (LEDCs) may become increasingly dependent on donor countries, and become heavily indebted. 2. Risk of Corruption. There is likelihood that foreign financial support do not reach their rightful recipients, but go to the hands of corrupt political officials. 3. Economic/Political Pressure. A donor country may place economic and political pressure on the receiving country, forcing them to return the favour. 4. Overlook Small Farmers. Foreign support may only benefit large-scale agricultural projects, and not the less privileged, small farmers who need help the most. 5. Benefit Employers. Most development may only benefit large corporations and already-wealthy employers, and not the people who do not have jobs or proper livelihoods. 6. Hidden Agenda of Foreign-Owned Corporations. Foreign aid is sometimes given to a country or recipient to benefit foreign-owned corporations and entities. So the help is not actually directed to the less fortunate, but to its own

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