Foreign Aid And Poverty Essay

1525 Words 6 Pages
Absolute poverty is a condition where people lack the wealth or means to cater to their basic needs, while the imbalance between people of different sex, class and status is inequality. Both states have negative impacts on a country, affecting a large number of the population, hence it is necessary to develop strategies to curb them. According to the World Bank (2016), 66% of the population in developing countries survived on less than $3.10 per day in 1990 and the percentage of people living in the same condition fell to 35% in 2012. Although a large percentage of people still live in poverty, there has been substantial decrease in the percentage of poverty between 1990 and 2012 and improvement can be attributed to foreign development aid. …show more content…
Despite the huge amount of aid rendered to Africa, the continent faced a reduction in per capita income between the 1970’s and 2009, over 50% of the population lives on less than a dollar per day (Moyo, 2008). This is despite foreign investment in Africa by foreigners such as the annual investment of $134 billion U.S dollars in Sub-Saharan Africa alone (Moyo, 2008). A possible explanation for the observed phenomenon is the misappropriation of funds by government officials and if not controlled, the lack of improvement is bound to continue. Many of the individuals appointed to ensure proper distribution and efficient use of the funds allocated are corrupt and would rather use the money for personal benefits. An example is Sani Abacha the military Head of State of Nigeria (not democratically elected) between 1994 and 1998 stole funds from Nigeria estimated at $4.3 billion (U.S dolllars) (Smith, 2015). In Sierra Leone where a poll was conducted by Africa Cradle (2016) 84% of participants reported to have paid officials for public amenities, these are all various examples and proofs of the presence of corrupt officials. These points show that not only can foreign aid not be effective in the reduction of poverty and inequality, it can also be instrumental in increasing

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