The limitations on Foreign Aid include whether or not it is effective, deciding between a planner and searcher, and misallocation of provided aid by government officials. The billions of dollars that have been collected worldwide, and specifically designated to foreign aid, have been abused by politicians in developing countries and in turn, have registered as not generating an economic growth or negatively affecting a developing country’s economy.
The big argument within economics and foreign aid is whether or not it is effective. Economists argue for both sides; however, with no sufficient amount of concrete evidence it is impossible to determine which claim is true. Easterly (2003) argues that “…one view that seems to command almost universal …show more content…
Easterly (2003) defines planners as setting “…out a predetermined big goal, like ending world poverty, to be solved. They also determine a big plan to reach the big goal and throw an endless supply of resources and a large administrative apparatus at that big goal” and searchers as “…more humble about how little she knows about other people’s problems. Searchers do not set predetermined problems and do not have big plans; they are just on the lookout for favorable opportunities to solve problems…” In years past, a majority of foreign aid plans have taken a “planner” approach and are extensive reports in which the team believes they have covered every aspect necessary to help the developing country and its problem with poverty. However, Easterly notes that the 2006 Nobel Peace Prize was a contest between a planner and searcher. The triumph of the searcher may be an indicator in the direction the world may be moving in terms of international aid being an investigative act, instead of comprehensive future …show more content…
Freeman (2006) focuses on corruption and lack of transparency in government and how it continually reinforces poverty. Through the use of the Corruption Perception Index (CPI), Freeman analyzes the correlation between corruption and poverty. He finds that even though many anti-corruption policies have been implemented worldwide, corruption is still widely found throughout governments. Freeman strongly believes that in order to see any change in the CPI monitored restructuring is necessary. Corruption is prevalent in many governments, corporations, and businesses worldwide and has to be addressed and actively pursued in order to stop it. If there is restructuring across the board, Freeman believes that the world will begin to see improvements in the everyday lives of those living in
The big argument within economics and foreign aid is whether or not it is effective. Economists argue for both sides; however, with no sufficient amount of concrete evidence it is impossible to determine which claim is true. Easterly (2003) argues that “…one view that seems to command almost universal …show more content…
Easterly (2003) defines planners as setting “…out a predetermined big goal, like ending world poverty, to be solved. They also determine a big plan to reach the big goal and throw an endless supply of resources and a large administrative apparatus at that big goal” and searchers as “…more humble about how little she knows about other people’s problems. Searchers do not set predetermined problems and do not have big plans; they are just on the lookout for favorable opportunities to solve problems…” In years past, a majority of foreign aid plans have taken a “planner” approach and are extensive reports in which the team believes they have covered every aspect necessary to help the developing country and its problem with poverty. However, Easterly notes that the 2006 Nobel Peace Prize was a contest between a planner and searcher. The triumph of the searcher may be an indicator in the direction the world may be moving in terms of international aid being an investigative act, instead of comprehensive future …show more content…
Freeman (2006) focuses on corruption and lack of transparency in government and how it continually reinforces poverty. Through the use of the Corruption Perception Index (CPI), Freeman analyzes the correlation between corruption and poverty. He finds that even though many anti-corruption policies have been implemented worldwide, corruption is still widely found throughout governments. Freeman strongly believes that in order to see any change in the CPI monitored restructuring is necessary. Corruption is prevalent in many governments, corporations, and businesses worldwide and has to be addressed and actively pursued in order to stop it. If there is restructuring across the board, Freeman believes that the world will begin to see improvements in the everyday lives of those living in