Foreign Aid In Latin America

Improved Essays
Collier’s words present a challenge to the status quo of foreign aid. Nevertheless, the United States Agency for International Development (USAID) has had its share of successes and failures in Latin America throughout the years. Collier sheds light into a bureaucratic issue that might be preventing a more effective way of managing foreign aid in the continent.
The absence of economic activity is a primary precursor to conflict in Latin America. When compared to the countries that house “the bottom billion”, Latin American nations are better off economically and enjoy better levels of stability. The continent only includes two of its countries on this list, Haiti and Bolivia. However, it will be a mistake to think of stability in Latin America
…show more content…
That is, micro-economic activity by the poorest in society can prevent conflict and provide a scalable model to macro-economic programs, there is enough capital to kick start such activity if the Department of Defense (DoD) assets with the best disposition to access otherwise inaccessible locations is leveraged to reduce the cost of foreign aid and its effectiveness. Chapter three will answer the question of micro-businesses as a way to prevent conflict. Can a small, neighborhood level business, provide the motivation for males to evade criminal involvement? Can the possibility of small income increases and the pride of ownership prevent families from separating and children from immigrating to the United States? Can these very small, grassroots business be scalable to other neighborhoods, towns, cities or countries? Could such economic activity be the base for the eventual replacement of foreign aid?
Chapter four will address the foreign aid issue and whether funds are reaching the intended recipients. What percentage of every dollar is spent on actual foreign development and what percentage goes to private or Non-Government Organizations tasked with managing such development activities? Are these NGOs and private entities absolutely necessary? Could western businesses be interested in investing and participating in foreign development?

Related Documents

  • Improved Essays

    In Charles Kenny’s globalization article, “Haiti Doesn’t Need Your Old T-Shirt”, Kenny explains that when America gives clothes and food to other countries it does not benefit them in the long run. If America wants to help out other countries then America needs to give them money instead. In Kenny’s article, Kenny points out reasons as to why money helps countries out more. In summary, Kenny describes that when America gives countries, such as the Middle East and North Africa, clothing, toys, and food that we do not want or need, it does not benefit them as much as we think it does.…

    • 924 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Robert H. Bates’ book “Prosperity and Violence: The Political Economy of Development” takes an in-depth look at how the two factors of either prosperity or violence work hand in hand in the development of the modern world. The different political structures of today have all come about because of prosperity and violence in different phases of each nation’s development taking it from the near egalitarian agricultural societies of the ancient world to the more modern nation-states that fill the earth on every coast. Bates does an excellent job of thoroughly covering the subject and frames his argument in a way that it is easy to read and understand his points. However one aspect that is not addressed at all is the almost inevitable transition…

    • 1696 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    The book Enough: Why The World’s Poorest Starve in an Age of Plenty by Roger Thurow and Scott Kilman discusses the causes and solutions to hunger in Africa. The book starts out with the story of Norman Borlaug, a plant pathologist, who was working to create a rust-resistant plant. He eventually created seeds that were very successful in Asia, helping to lift people out of starvation. Because of this, he won the Nobel Peace Prize. However, Borlaug’s seeds did not make it to Africa, where many people were starving.…

    • 930 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Foreign Aid Limitations

    • 736 Words
    • 3 Pages

    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.…

    • 736 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Furthermore, another problem about foreign aid is that it’s displaying favoritism to certain countries. Also demonstrating discrimination may cause those countries to feel left out and may feel abandoned. Whereas assisting these countries allows the nations to have a better association. On top of that when a country, aides another it may motivate them to return the favor.…

    • 416 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Theoretically speaking, it could be that circumstances like Horizontal inequalities where the prevailing regime plot to keep resource-rich underdeveloped communities or regions marginalised; and that these same condition also create other domestic pressures – economic, socio-political, or increased tension of another nature – which result in heightened risk of conflict. Assuming the two events are causally linked, there is no reason why causality should run in only one direction. For example, just as resource dependence could create conflict; it may be that conflict leads to greater natural resource dependency (Ibid). Taking a longer outlook, there are several examples in history of countries which flourished as a result of natural resource exploitation, without suffering violent conflict (Namibia and South Africa etc), thus, posing more fundamental questions about the appropriateness of this type of quantitative analysis of conflict by the works of Collier & Hoeffler.…

    • 549 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Latin American nations experienced periods of political and economic instability. Their condition was in such decay and disorganized, that foreign governments decided to intervene and remedy the situation, even though those efforts proved to have little success. European and the United States used the situation to their advantage by fulfilling their political and economic desires, rather than fix the problem at hand. They did try to remedy the problem, but inevitably, the nations had to fix it themselves. Politically, European and United States intervention caused a sense of nationalism and patriotism within each Latin American nation.…

    • 159 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Did Haiti experience economic growth? Hispaniola economy was built on sugar, coffee, cotton, cacao for chocolate and slave labor. Haiti sugar was an extremely profitable operation that was in competition with the northeast region of Brazil, one of Europe’s chief sources of sugar. The French sugar and coffee operations were so productive that its exports to Europe often exceeded the total exports of the British North American colonies .…

    • 1562 Words
    • 7 Pages
    Improved Essays
  • Superior Essays

    Heather Dande Professor Ruget POL 379: Final Exam Section 1 1. Elections & democracy reduce the risk of violence (chap. 1) Answer: True and False Explanation: Collier found that the effect of elections and democracy on violence in poor and rich countries had radically different outcomes (Collier, 20). On one hand, this is true because the data collected confirmed that in middle-income level countries, democracy reduced the risk of political violence. On the other hand, this is false because in low-income countries democracy increases societal dangers (Collier, 20-21).”…

    • 2869 Words
    • 12 Pages
    Superior Essays
  • Superior Essays

    From the Cold War to more recent struggles with domestic guerrilla groups and drug cartels, Colombia has not had a time of peace since their country was created. Corruption within their own government has left Colombia with no authority; the citizens have nobody to trust, be helped by, or be defended by. Colombia has the potential to institute a stable and effective government, but it has some major complications holding it back. Colombia has been in constant war and armed conflict, domestic and foreign, since the early 19th century. Corruption within their own government has left Colombia with no authority.…

    • 1188 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The focus of this research paper will be to look at the reasons why individuals are living in poverty in Central America and what affects it has on those presently living there. Poverty has been a reoccurring issue within many Central American’s lives. Poverty can be described as having the lack of funding and resources to support a given population (CITE). Not only are many Central Americans living in poverty, many actually live below the world poverty line. For many of those who are living in or below the poverty line in Central America, common issues and effects coincide.…

    • 915 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The Imperialism of Latin America throughout History Latin America has constantly been colonized or influenced by outside entities since the new world was discovered in the sixteenth century. Subsequently, these outside influences have constantly shaped Latin America into a part of the world that continuously benefits a small number of elites, and foreign interests. While the average Latin American citizen does not gain any advantage from outside influence, they are constantly fighting for a voice of change and future autonomy. Latin America has a large socio-economic problem that is instigated by the constant involvement of foreign countries. This problem can be directly traced to the sixteenth century when the Spanish and Portuguese colonized…

    • 1118 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Corruption In Haiti

    • 1141 Words
    • 5 Pages

    When the government sends bilateral aid, direct payments to another countries’ government, much of this money never fulfills its intended goals. Aid is one of corruption’s closest allies. Aid transfers allot corrupt governments huge sums of cash that get misused for luxurious lifestyles and the financing of personal militias instead of helping the country or its citizens. The African union estimates that corruption costs the continent $150 billion every year. Malawi top government officials siphoned $30 million out of the government’s budget, in which foreign aid consists of almost half the annual total budget.…

    • 1141 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    He should have told the readers that foreign aid helps in improving lives by creating equality through ensuring that people in the developing countries could eat food. In the cases that foreign aid did not help in improving people’s lives in the developing countries, Deaton should have provided ample evidence so that readers would have understood why foreign aid should not be…

    • 1660 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Foreign Aid Essay

    • 840 Words
    • 4 Pages

    Foreign aid is the international transfer of capital, goods, or services from a country or international organization for the benefit of the recipient country or its population. Aid can be economic, military, or emergency humanitarian (Williams 2015). Aid has long been recognized as crucial to help poor developing nations grow out of poverty. Peace and war has the significant effect of distribution of foreign aid in the developing countries. The distribution of foreign aids is effected in several factors which are based on the relations amongst the countries, military power, strategic natural resources, chances of development, diplomat ties and prestige, etc.…

    • 840 Words
    • 4 Pages
    Improved Essays