Advantages and Disadvantages of International Aid - 275 Words

Advantages and Disadvantages of International Aid (Essay Sample) Content: Advantages and Disadvantages of International Aid NameInstitution Advantages and Disadvantages of International Aid Developing economies encounter multiple challenges including poverty, poor health standards, and low economic development. Lack of adequate resources limits the capacity of poor nations to achieve their socio-economic goals sufficiently. It is these vast differences in the socio-economic status between the third world and developed countries that have prompted the shove for foreign aid. With over 1.4 billion people globally experiencing absolute poverty and more than 15 million innocent children annually succumbing to starvation, international aid is a necessity (Ball Johnson, 2008).International aid provided by international organizations immensely contributes to socio-economic empowerment of low income countries. Provided in the form of monetary support, food, and medical care, international aid improves the living standards of recipient nations. Econ omically, third world countries heavily depend on the International Monetary Fund as their banker and creditor. The monetary supports and grants by the IMF and the World Bank to poor countries are fundamental in stimulating economic growth, as well as funding infrastructural projects in these countries (Easterly, 2006). Without international support, poor countries are likely to fall short of their millennium development goals. Although international aid plays a critical role in the fight against hunger and poverty in third world economies, it is criticized for fostering overdependence on donors. With the poor countries being at the mercy of international communities, donor countries take advantage to gain self benefits. Due to the vulnerability of the supported countries, donors end up imposing their ideologies and unfavorable policies on these countries. Many donor countries have ulterior motives for providing aids and humanitarian services purposely to exploit the resources of th ese poor nations (Ball Johnson, 2008). Therefore, the benefactors deny poor countries room for self-sufficiency and socio-economic independence. From the cost-benefit analysis of international aid, it is evidenced that although such aid weakens national so...