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Foreign aid - Essay Example

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It may be a grant or subsidy (Mavrotas, 2010; Healey, 2010). On the other hand, according to Riddell (2007) foreign aid refers to any help in the form of food, resources or monetary form given or loaned to…
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Foreign aid
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Foreign aid

Download file to see previous pages... These countries constantly rely on the good will of the developed countries for their survival.
Randel & German (2013) say that multilateral aid is the aid offered by other organizations such as financial institutions, associations and agencies to needy countries. Third world countries have been seen to acquire a lot of multi-lateral aid from institutions such as World Bank, IMF, amongst others. From the chart, the aid, the need for aid rises by the day. In Africa, the forms of Foreign in Aid range from loan assistance, emergency relief assistance such as drought, health assistance, food, water, technological assistance
However, the status of Africa is worsening. Africa comprises of the Heavily Indebted Poor Countries (HIPC). This relates to issues such as poor governance from their leaders despite the richness of the same in terms of resources and minerals. Knack & Brautigam (2004) say that Africa lacks the rule of law, corruption prevails; thus, poor accountability.
Foreign Assistance will no doubt not save Africa’s situation. The poverty rates still persist despite the constant aid. Ayodele et al (2005) are wary of the fact that despite the set MDGs, development for Africa has a long way to go. Conclusively, foreign generally leads to slow growth as seen in the case of Africa. Evidently inflation rates are high in Africa despite the constant foreign ...Download file to see next pagesRead More
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