The gap between developed and developing countries is striking. In Africa, “over 40% of people said they went without clean water or food at least once or twice in the past year. 49% went without medical care, 38% without cooking fuel and 74% without cash income” (Parke). In response to these conditions, foreign countries have contributed to Africa in the form of aid. While some have attributed improving conditions of living in Africa to foreign aid, others criticize aid for showing no visible impact on the lives of the people (Thompson-Odoom). Overall, foreign aid has benefits but also severe detriments.
By allowing developing countries to invest in transformative infrastructure, foreign aid could potentially boost economic growth (Abugre). In Ghana, the government received $547 million of economic aid from the United States and used it to increase the quality of agriculture through improving efficiency along the production chain (Worthington and Yohannes). As a result, Ghana saw agriculture output increase 5% annually since 1983 and poverty drop down by a half (Worthington and Yohannes). Furthermore, a researcher from the United Nations University, McGillivray, analyzed trends in aid given between 1960 to 2002 to Sub-Saharan Africa, and found that aid lead to increased economic growth, whereas absence of aid led to higher levels of poverty.
Economic aid can also improve the political structure of a country because “aid involves the transfer of...policy advice…and spread[ing] new ways of thinking about governing” (Goldsmith). Thus, as a result of interaction between donor countries and African countries, Goldsmith, Professor or Management at University of Massachusetts Boston, notes that today’s political discourse is far more liberal than several decades ago. Furthermore, aid makes democratization more likely because it contributes to stability. Without aid, many countries could descend into “warring fiefdom” (Goldsmith). Indeed, Goldsmith’s study concludes that increased aid correlates with increasing levels of democracy and economic liberalization (Goldsmith).
However, foreign aid also has potential drawbacks. Foreign aid given to corrupt regimes does not increase democracy, but rather, leads to the deterioration of political institutions. Often, dictators, as in the case of Mobutu Sese Sekou, use aid instead for personal gain and to repress the population. Thus, aid given to dictators allows them to stay in power for longer, as they feel they have support from donors (Goldsmith).
Moreover, other studies have found no economic growth as a result of foreign aid, and some even found declines in the economy (Abugre). When aid is given to corrupt governments, the aid is not used to improve the economy but misused by unscrupulous governments (Thompson-Odoom). Aid also corrodes a country’s economic infrastructure due to dependency. As governments start to rely on foreign aid, they have no incentive to reform their own economic system, and develop the “capacity to raise revenue through direct taxation” (Goldsmith).
Thus, while foreign aid could potentially deliver economic and politic benefits, aid can also exacerbate the same problems it is intended to solve. With such instability and poverty in Africa, it is clear that something must be done in order to improve the lives of the people living on the continent. Whether that solution is foreign aid, however, remains to be seen.
Works Cited
Abugre, Charles. "Why Foreign Aid Is Important to Africa." CNN. Cable News Network, 13 Aug. 2010. Web. 08 Mar. 2016.Andrews, Nathan. "Foreign Aid and Development in Africa: What the Literature Says and What the Reality Is." Journal of African Studies and Development 1 (2009): 8-15. Academic Journals. Academic Journals. Web. 07 Mar. 2016.
Goldsmith, Arthur A. "Foreign Aid and Statehood in Africa." International Organization 55 (2001): 123-48. JSTOR. Web. 7 Mar. 2016.
McGillivray, Mark. Helsinki: World Institute for Development Economics Research. Feb. 2005. Web. 7 Mar. 2016.
Parke, Phoebe. "Africa Is No Longer 'poor', but Differences Remain." CNN. Cable News Network, 26 Jan. 2016. Web. 11 Mar. 2016.
Thompson-Odoom, Jemilat Kike. "The Effects of Disbursement of Foreign Aid to African Countries: A Case Study of Ghana and Ivory Coast (Cote D'Ivoire)." UNLV. University of Nevada. Web. 07 Mar. 2016.
Worthington, Samuel, and Daniel Yohannes. "Foreign Assistance, Even in Tough Times, Is a Good Investment | Daniel W Yohannes and Samuel A Worthington." The Guardian. Guardian News and Media, 23 Nov. 2011. Web. 08 Mar. 2016.
Wow, this article is really strong! I really like you address both the positive and negative effects of foreign aid. My main take away was the foreign aid can damage a country because of corruption, I had never stopped to consider that before. Do you know any specific countries with governments that are so corrupt that foreign aid actually damages the country?
ReplyDeleteThis article was actually very enlightening because of how you address a side that most people don't think about, which is how foreign aid can actually be a detriment to developing countries. I feel like I'm more aware now because of how I learned that corrupt governments who receive aid in developing countries only make the situation there worse. One thing I'm still a little curious about is how does an economy drop when they receive financial aid? What do corrupt governments do with that money that could cause a decrease in economic stability?
ReplyDeleteI enjoyed your use of specific evidence to discuss both the pros and cons of foreign aid. It was surprising to me that aid would be given to corrupt governments and misused. Is it known to the aiding countries that these governments are corrupt, or is that only discovered until after it is too late?
ReplyDelete