Does International Aid Develop the Economy?

Does International Aid Develop the Economy?

How should we infer the word ‘Aid’?  The literal meaning is to help or support. However, it is not wise to consider the aid for boosting your financial state. To relate this to the countries seeking or looking for aids might consider it to boost their economies. This is so not possible or feasible to do. It might enhance some parts or specific regions of the country but cannot develop the economy as a whole.

International Aid is a type of support that a country needs from any other country or international organization such as United Nations (UN) or International Monetary Fund (IMF) etc. These aids are the significant amounts for the developing countries to invest in their businesses or public sectors..

Are Aids beneficial or Not?

Just consider! Even if foreign aid is not the solution to global poverty, then what is? The studies have shown that these aids are not directly improving the economy but somehow these are useful. If the funds are used in technological adoption, it will boost the economy astonishingly. Seeking aids from other countries or international organizations is a sustaining way. These amounts of aids can help a country recover from its devastations. The humanitarian issues can be lessening through this, which are diseases, poverty or natural disasters.  Recently, Iraq has sought an aid to recover its current condition. The instability need to be gone by now. The challenging circumstances from decades have ended so to improve its economy and infrastructure, Iraq is looking forward to United Nations for the allowance of funds. This international aid requested will bring a point of stability and reform in Iraq, if used in the true manner.

Some of the types and advantages of international aids can be:

  1. Live savers
  2. Rebuild Livelihood
  3. Availability of Medicines
  4. Encouragement for development
  5. Tap natural resources
  6. Military aid
  7. Voluntary aid

Problems with International Aid

The main problems with foreign aid have been:

  1. The inappropriate development model i.e. financing gaps
  2. Maladministration i.e. the least concerned aid agencies. They are not accountable to anyone, thus aids do not reach to the deserving ones.
  3. Policies and accountability lacks are keeping the people away from their privileges.
  4. These aids are unable to support long-term developments
  5. People are not receiving the benefit directly or even indirectly.
  6. Only politics is succeeding from such aids, because even if they are provided to people, it is shown that their government is burdening it for them.
  7. Reforms or developments are too minor to be noticed by public.
  8. Determinants of long-term growth are missing.

 Conclusion

Summing up, it is not the fault of the foreign aid donors that the economy don’t gain any benefit.  If the government wills to use the aid in the right direction, this aid can serve many purposes. The impoverished population of the developing countries is suffering the most. Foreign aid is taken profitable politically. There is a minor margin for the politicians to change the currents system from which they are benefitting themselves.  If the foreign aid programs are failing normally, then why do they still persist? The answer to this is, all the aids are not used for the masses. While most of them are medical or agricultural, so are commonly used to serve the purpose. It would be a mistake to generalize all the international aids as useless. It cannot impact the economy rapidly of course but can be utilized as a source to enhance the technology which can further lead to improvement and development.


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