The Effects of War and Peace on Foreign Aid Essay
India is not immune to intrastate and interstate warfare. The relationship between India and Pakistan has …show more content…
Investigating whether or not the provision of foreign aid results in the successful reduction of poverty and warfare in developing countries continues to yield inconclusive findings; however, researchers infer that foreign aid’s impact on economic development is slim to none. Development indicators such as investment, growth of national income, and savings mirror the impact foreign aid on a developing country’s economy. In fact, many researchers concur that the rate of development is indirectly proportional to the large amounts of money disbursed by foreign, developed countries. India is no exception to the rule whereby, foreign aid received by the country resulted in negligible of negative effects on the country’s developmental indicators (Kamath, 1992).
India’s history of foreign aid attests to the fact that foreign aid plays an insignificant role in fostering economic growth and deterring warfare. Between 1955 and 1971, the USA disbursed large amounts of foreign aid to India. At the time, India was preoccupied with the nationalization of its economy. The government directed the funds received towards