The Effects Of Foreign Aid On The Reduction Of Poverty And Inequality

1525 Words May 19th, 2016 null Page
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. Foreign development aid is a form of assistance offered to developing countries. The purpose of this essay is, to show the impact of foreign aid on the reduction of poverty and inequality in developing countries, and to prove that it is an effective strategy to combat these problems.
Some recipients of foreign aid advocate that it is a good strategy to eradicate poverty and inequality. In Ethiopia, where the prevalence of undernutrition is high, the percentage of undernourished individuals has dropped from 69% to 41% (Falsani, 2012). Undernutrition usually occurs in developing or undeveloped countries and it has been reduced in Ethiopia through the funds generated for the country by foreign assistance. Non-Governmental Organizations such…

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