Foreign aid doing more harm than benefits

In understanding this argument pretty well it is important to inquire into why rich countries are seasoned providers of Foreign Aids whereas poor countries are perennial beneficiaries. For over a century, developed countries have been giving Aids to less developed country but ironically very little is noticeable in regard to poverty eradication. Arguably, foreign aids have brought many problems than solution with regard to economic growth. To start with, we examine whether foreign aid can help a poor country escape from poverty. In order to understand this question there need to analyze how foreign aid basically used. Due to this dependency, developed countries extort substantial control ether economically or politically. This behavior makes the weaker country poorer because it adopted policies that are carefully tailored to benefit the stronger country.

Viewing foreign as an extension of colonialism in the modern world clear explain the motives behind some lucrative donations. Since many donors are always former colonizers, the major aim of donors is get raw material for their industries in disguise of supporting economic development. Foreign Aid in form of Foreign Direct Investments results to multinational companies from the donors dominating in the recipient country (Brown, 2014). Poor countries may be forced to accept loans from the developed ones (Smillie, 2017). As earlier argued, donor countries usually exert political and economic pressure on developing countries. In order to extend modern colonialism, developing states are pressured to accept loans from their major donors which keep them always in debt. Therefore, less developed countries are obliged to supply their cheap raw material to creditors and import expensive finished products.