TAILIEUCHUNG - Lecture Development economics - Lecture 31: Foreign aid for development assistance

Foreign aid or (development assistance) is often regarded as being too much, or wasted on corrupt recipient governments despite any good intentions from donor countries. In reality, both the quantity and quality of aid have been poor and donor nations have not been held to account. | Foreign Aid for Development Assistance Dr. Naqvi Introduction Foreign aid or (development assistance) is often regarded as being too much, or wasted on corrupt recipient governments despite any good intentions from donor countries. In reality, both the quantity and quality of aid have been poor and donor nations have not been held to account. continue In 1970, the world’s rich countries agreed to give of their gross national income as official international development aid, annually. Since that time, despite billions given each year, rich nations have rarely met their actual promised targets. For example, the US is often the largest donor in dollar terms, but ranks amongst the lowest in terms of meeting the stated target. Continue Aid is often wasted on conditions that the recipient must use overpriced goods and services from donor countries Most aid does not actually go to the poorest who would need it the most Aid amounts are minimized by rich country protectionism that denies market access for poor country products, while rich nations use aid as a lever to open poor country markets to their products Large projects or massive grand strategies often fail to help the vulnerable; money can often be misused. Topic of Presentation Governments Cutting Back on Promised Responsibilities Foreign Aid Numbers in Facts and Figure Are numbers the only issue? Aid as a foreign policy tool to aid the donor not the recipient Aid Amounts Dwarfed by Effects of First World Subsidies, Third World Debt, Unequal Trade, etc But aid could be beneficial 1. Governments Cutting Back on Promised Responsibilities “Trade, not aid” is regarded as an important part of development promoted by some nations. But in the context of international obligations, it is also criticized by many as an excuse for rich countries to cut back aid that has been agreed and promised at the United Nations. a. Rich Nations Agreed at UN to of GNP To Aid Recently, there was an EU

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