Foreign Aid From Rich Countries Essay

816 Words Apr 20th, 2016 4 Pages
Creating change in countries with poverty is something that I have always viewed as impossible. I think there are many reasons behind poverty, but after reading this week’s readings I feel that are potential changes that could be made. I have always viewed financial aid from rich countries as a positive and profitable solution. I had never considered that there were any negative effects. In the honest reports briefing the numbers show the sad reality of what is really financially happening in these countries. Some of the shocking financial numbers are the ratio of foreign aid going into the country in comparison to money leaving the country that is leaving. Some of the money leaving the country is positive a large amount is negative. The net annual loss for Africa is $58.2 billion, and is expected to be $580billion over the next ten years. They’re current annual losses are broken down as follows 46.3 billion in profits made from multinational companies, 21 billion in debt payments from irresponsible loans, 35.3 billion in illicit financial flows from global network tax havens. 23.3 billion in foreign currency reserves given as loans to other governemtns.18.3 billion in illegal logging and fishing, 6 billion from migration of skilled workers, 10.6 billion to adapt to climate change, and 26 billion to promote low carbon economic growth. Once all of this is added up and the 134 billion in financial aid is analyzed the result is 58.2 billion in financial loss.
The losses…

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