Foreign Aid to Developing Countries

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Foreign Aid to Developing Countries History of foreign aid first start after the World War II, the purpose is to rebuild the economies of the countries that involved in the war. The idea of foreign aid then developed by United States and Soviet Union in early 1950s by using it to strengthen their allies military and spread political ideologies from their countries. In 1989 after Cold War end, foreign aid has been used for helping the developing and underdeveloped countries to improve their economic growth and public wellbeing (Chheang 2009). However, there are some people that claim that foreign aid is done nothing to help developing countries to improve, in fact it do more harm than good. To compare the arguments of people that support the idea of foreign aid and against it, this essay will discuss the positive and negative effect of foreign aid in the developing countries. Firstly, foreign aid helps to build the capacity of people, communities and countries to move out of poverty by providing the humanitarian needs. The statesman Malcom Fraser said that the effective aid should be given are basic needs of livelihoods, education, health, clean water, sanitation, and the rule of law for the poor and vulnerable (2010). In addition, the basic of livelihoods include clothes, house, food, as for the education and health, it include the hospital, medicine, and school. On the contrary, if the aid that have been given only foreign direct investment or money, it cannot break the cycle of poverty in that countries. On the other hand, it could lead to dependency to foreign aid and many other negative effects. Secondly, many people believe that foreign aid could help promoting the economic growth in developing countries. By giving the foreign aid to improve the economic growth, foreign aid also have the adverse effect on economic growth. To shows the improve and adverse
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