We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Effectivess of Foreign Aid as a Form of Multinational Financial Assistanse - Essay Example

Comments (0)
This essay talks about the foreign aid as an instrument of financial cooperation between the countries. The effectiveness of foreign aid is evaluated. It is argued that aid is usually tied to the benefit of the donor, as it should be spent on goods or services produced in the donor country…
Download full paper
Effectivess of Foreign Aid as a Form of Multinational Financial Assistanse
Read TextPreview

Extract of sample
Effectivess of Foreign Aid as a Form of Multinational Financial Assistanse

Download file to see previous pages... This paper presents comprehensive analysis of the effectiveness of the financial aid as a form of foreign assistance to the economy of a recipient country. As a condition for aid money, many donors apply conditions that tie the recipient to purchase products only from that donor. In a way this might seem fair and “balanced”, because the donor gets something out of the relationship as well, but on the other hand, for the poorer country, it can mean precious resources are used buying more expensive options, which could otherwise have been used in other situations.
A country from the third world that feels difficulties with its budget may turn to the International Monetary Fund (IMF), World Bank or one of the Major Developed Countries (MDCs) for assistance. Since such assistance is usually given on some condition, it involves agreement to modify domestic economic policy.In this case creditor country (or organization) restricts free trade with protectionism in which barriers to imports (tariffs and quotas) are established in order to protect their industries from foreign competition. Government regulations also protect the environment, agriculture and workers of the donor country or organization.
It was reported, that 71.6% of American bilateral aid commitments were tied to the purchase of goods and services from the US.” That is, where the US did give aid, it was most often tied to foreign policy objectives that would help the US.
The origins of the foreign aid policies of the industrialized democracies are complex and varied.
In the Reality of Aid 2000 (Earthscan Publications, 2000 cited in Shah 2006) reported in their US section that "71.6% of its bilateral aid commitments were tied to the purchase of goods and services from the US." That is, where the US did give aid, it was most often tied to foreign policy objectives that would help the US.
Leading up to the UN Conference on Financing for Development in Monterrey, Mexico in March 2002, the Bush administration promised a nearly $10 billion fund over three years followed by a permanent increase of $5 billion a year thereafter. The EU also offered some $5 billion increase over a similar time period.
History of Foreign Aid
Countries of Latin America
The Worlds debt crisis of the early 1980's was the culmination of a build up of external debt of developing countries, a large part of which was accounted by a progressively rising short-term debt. The debt of Less Developed Countries (LDCs) was triggered largely by demands from the balance of payments effects of the oil crisis that started in 1973/74. The debt build up became more apparent towards 1980 when third world borrowers resorted to rolling over their debts. (Stambuli 2002)
A combination of very tight internal fiscal position and increasingly fragile balance of payments, most developing countries contracted new loans to liquidate maturing loans. In some cases, entirely new loans were contracted to service interest only. At the same time bankers in the western world ignored signals of an imminent debt crisis and remained more than willing to refinance maturing loans of developing countries, but with shorter maturities. In this process, third ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Multinational Business: Foreign Direct Investment
Multinational Business: Foreign Direct Investment (FDI) Introduction Globalization refers to the integration of world economies through the reduction of barriers to the movement of trade, capital, technology, and people. International business or cross cultural business has been increased a lot in recent times as a result of globalization, liberalization and privatization policies implemented in many countries.
9 Pages(2250 words)Essay
Adverse Effects of the Foreign Aid
As it is shown in the essay, there are number of studies that suggest how foreign aid could undermine the country-beneficiary and its people's ability to change their circumstance. Negative effects include the increase in power on the part of the government, the over dependence on foreign aid, and the adverse impact, referred to as Dutch Disease.
12 Pages(3000 words)Essay
Multinational Financial Management
One, the mezzanine loan will be enacted in order to achieve our expansion goals, in the amounts and for the reasons prescribed below. Two, the asset-backed commercial paper will also be utilized in this plotted expansion effort, as prescribed below as well.
5 Pages(1250 words)Essay
Community College Financial Aid
Financial aid is an issue in which the mission is to assist students in achieving their educational goals by providing professional assistance and timely financial aid resources. Financial aid is awarded on the basis of demonstrated need or for recognition of special talents and accomplishments, in accordance with Federal, State and donor-prescribed criteria.
10 Pages(2500 words)Essay
Multinational Financial Management Essay
In this paper, a model international company is created that trades with lubricants. Using this model, it is possible to investigate the effects of the different financial instruments availed in the exchange markets. The process of evaluation involves conducting a survey about the finacial instrument then applying it to the model multinational corporation.
13 Pages(3250 words)Essay
Financial Aid
Free Scholarship Service Online, Sources of Financial Aid, Student Guide to Financial Aid, Financial Aid for Student Hope Page and Free Application for Federal Aid. Navigation of each of these websites uncovers valuable information for how a student like Jack may qualify for
2 Pages(500 words)Essay
Financial aid essay
However, I couldnt share this passion to my friends back home since they don’t possess the same love for music. Being accepted to a highly prestigious Walnut Hill is the most precious gift I received last winter. It marked one of the happiest moments in my life.
1 Pages(250 words)Essay
Foreign aid
There are various types of Foreign Aid; bilateral aid and multilateral aid. As argued by Nelson (2010) bilateral aid refers to the aid that is given by a donor state to a needy state. Most third world countries are the recipient countries as they are
1 Pages(250 words)Essay
Financial Aid Appeal
Further, I was also diagnosed with ADHD by my doctor and I have started taking medications for this kind of ailment, and finally, I am also a working student who was only recently hired by
1 Pages(250 words)Essay
Foreign Aid: Which financial instruments should be used to provide foreign aid What is the right balance among these different instruments
In essence, bilateral aid is contingent upon when capital flows from a developed nation to a developing nation. Similarly, multilateral aid is contingent upon a situation in which capital flows to a
4 Pages(1000 words)Essay
Let us find you another Essay on topic Effectivess of Foreign Aid as a Form of Multinational Financial Assistanse for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us