Foreign Aid Essay

1760 Words 8 Pages
Abstract: The impact of massive aid transfer in the globalised world has been discussed by many economic experts. Generally, many believed that foreign aid brings benefits to recipient countries. In fact, aid is transferred based on donors’ political motives because they yearn for world influence. Besides this, ‘tied aid’ is also used as a method to strengthen donors’ economic conditions. This exhibits the ineffectiveness of foreign aid because it caused the recipient countries to consume some amount of goods and services from donor countries with overcharged prices. Simultaneously, foreign aid is used to broaden donors’ cultural values in recipient countries. Once their cultural values are applied in numerous nations, it helps the donors …show more content…
Therefore, it is sufficient to say that foreign aid helps donor countries more than it helps recipient countries mainly because it facilitates the donors to accomplish their political interests, attain high economic development as well as broaden their cultural values in the recipient countries.

The Political Motives
Donor countries may find foreign aid is advantageous for them because it enables them to attain their political interests. Political interest is defined as any motive by a person or a nation to get involved in any political process and it works independently on one’s credibility and political efficiency (Horner, 2004). “A recent empirical work by some experts strongly indicates that political considerations, rather than economic needs, play a major role in determining foreign aid flows” (Mayer & Raimondos, 2003, p.165). Some argued that aid was not given based on altruism of the donor countries (Mayer &Raimondos, 2003). Donor countries are driven by political motives such as defence and political influence. Furthermore, it is verified that foreign aid is able to bring political influence in congressional voting. This is illustrated in the United States of America, where foreign aid determines votes in the House of Democrats. Besides this, it is shown that the House Democrats are five times more likely to vote in favour of aid as

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