In many parts of the world, some countries are underdeveloped and seek development, but several factors prevent them from becoming more economically and socially advanced. Underdeveloped countries have widespread poverty and political instability. Their continuing factors of geographic location, climate, domestic institutions, and lack of resources or too many resources contribute to their struggle of providing for the growing population. Developed countries, such as the United States have created foreign aid programs to help the less developed countries financially. Foreign aid can be defined as “the international transfer of capital, goods, or services from a country or an international organization for the benefit of the recipient country or its population” (Williams).
Foreign aid is useful because it can save millions of lives around the globe by decreasing the effects of poverty, creating strong relationships between different governments, and can play a major role in solving problems of underdevelopment. Although foreign assistance may assist poor countries and be beneficial, there can also be negative effects on the less developed country and the developed countries as well.
There are several forms of foregoing repair damages. Sometimes military equipment and troops are sent to these underdeveloped countries to help them fight a war if they are under attack. For example, the United States usually takes part in assisting less developed countries by providing them with foreign aid to help with their national security, political development and stability, humanitarian crises, and overall long-term development. The United States is known to be “the largest donor in terms of dollars spent” (The Center for Global Development) and “has spent 50.
1 billion dollars in foreign aid each year” (Agarwal). Their efforts in providing foreign aid have helped poor countries “dramatically improve their income, health, and education” (The Center for Global Development). Several organizations have also given money to developing countries SU providing Developing as the International Monetary Fund which provides funding to ensure economic growth and promote employment; The World Bank, which funds development products; as well as the United Nations Children’s Fund, which helps to save children’s lives (United Nations).
Domestic factors within developing nations affect forego whether or not there will be economic growth. Governmental policies that promote public goods can “contribute to economic growth and prosperity” (Frieden, et al. 425). Foreign aid can help countries develop infrastructure such as all means of transportation, utilities, telecommunications, etc. Developing infrastructure can allow countries to engage in trade and investments. Providing the country with social infrastructure promotes health and safety, which allows the population to focus on productivity. Infrastructure “helps shape domestic firms’ investment decisions and determines the region’s attractiveness to foreign investors” (Federal Reserve Bank of Atlanta). When there is economic growth in developing countries, those who aid countries are exposed to opportunities that allow them to profit as well.
Foreign aid across the world as previously discussed, especially in Africa, is a necessity. Its significance is imperative to the success of the continent. Sharing aid and sympathy amongst countries are essential to maintain and protect the people of the nation. It is also needed so the idea of what it is to be human can be understood. As stated by CNN, “It is inhuman to watch another dying of hunger and not share what you have more than enough to eat”. Although argued, international aid is the root of ending famine and economic struggles in Africa. Technological aid may also be a huge help as, “Countries need the technology, the investment in their human beings and in their infrastructure to have a chance of transforming their economies to produce value-added goods” (CNN). While there are apparent justifications for development aid, which are humanitarian and economic, there is truth in alleviating suffering in these countries in the long run. According to CNN, “Debilitating diseases such as smallpox, tuberculosis, river blindness or leprosy have been controlled thanks to targeted development aid efforts”. Hence, while there are arguments against foreign aid there is proven candor in what it can accomplish.