Foreign Aid - African Issue - Essay Example

Most third-world countries are the recipient countries as they are needy resulting from socioeconomic and political constraints. These countries constantly rely on the goodwill of 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 the World Bank, and 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 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, and corruption prevails; thus, poor accountability.
Foreign Assistance will no doubt not save Africa’s situation. The poverty rates 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. Inflation rates are high in Africa despite the constant foreign aid. Read More