The Importance Of Foreign Aid

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Foreign aid has been a major aspect of international relations since the end of World War II, when allied countries gave money to Europe in order to rebuild after war ravaged the continent. The concept of aid has expanded since then to help those who are living in abject poverty, to assist in the development of infrastructure, and to help those living under the threat of perpetual war. The West has put an emphasis on providing foreign aid to those in need whether it is through celebrity campaigns, government initiatives, or charity groups. Humanitarian aid and health initiatives have done amazing things for the world, such as the eradication of smallpox, as well as the provision of emergency supplies after a national disaster.
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Critics of aid have argued that development works when there is accountability at both a micro and macro level, with both donors and recipients participating in the process (Winters, 2010). As will be discussed later, corruption can be a major part of the problem, but one could also argue that lack of transparency is just as damaging. This leads to the money being spent in the wrong areas, which causes projects being rushed or incomplete. International development funds, such as the World Bank, have had issues currently, as well as in the past, with getting their money to it 's intended destination. Some factors that affect the allocation of foreign aid are: too many donors, fragmentation of projects, and coordination of the bureaucracies involved (Easterly, …show more content…
As of 2004, China overtook Japan as the world 's second largest consumer of petroleum products, after the US, and needs to find new streams of resources to keep up with demand (Moyo, 2009). Building infrastructure in countries in order to secure favorable resources for extraction is a clear example of dependency theory. Core countries can then sell back products to these periphery states at high prices in order to fulfill both their economic and resource demands. This cycle of dependence only aids the private interests of both political and business elites, while doing nothing for those in developing

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