...Foreign Aid In the current situation from 2009-present, international assistance has been expanding its scope but it still has many problems such as corruption, inefficiency in progress or poor management and delay in helping. Last few decade problems with foreign aid are caused not only by incompetence or corruption but also related to itself complex machinery which has been trying to developed aid to transmit from donor to recipient. In addition, there are still poor and waste in aid because the corruption by the recipient government because to aid cannot go to help poor people who really need and want it most (Lappe,Collin,Rosset 1981 9). This essay will examine both of corruption and inefficiencies of assistance and give some suggestion such as they should be a committee of country’s revenue and expenditure, or aid system should be provides transparent and can be verified easily(Demon McNeil 1981 36) followed by evaluation for the best solution to solve a problems As we already knew that, now aids has come from many ways such as food aids, military assistances but the most important aid that is often a serious problem is a financial assistance. Financial aids are usually corrupted by national governments, who have been helped by the donor countries the corruptions always start at the beginning of the aid processes. In addition corruptions are likely to arise in situation where resources are transferred with substantial discretion without accountabilities to the decision...
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...definition of foreign aid comes from the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD), which defines Foreign aid (or the equivalent term, foreign assistance) as financial flows, technical assistance, and commodities that are; (1) Designed to promote economic development and welfare as their main objective (thus excluding aid for military or other non-development purposes); and (2) Are provided as either grants or subsidized loans. Grants and subsidized loans are referred to as concessional financing, whereas loans that carry market or near-market terms (and therefore are not foreign aid) are non-concessional financing. According to the Development Assistance Committee (DAC), a loan counts as aid if it has a “grant element” of 25 percent or more, meaning that the present value of the loan must be at least 25 percent below the present value of a comparable loan at market interest rates (usually assumed by the DAC rather arbitrarily to be 10 percent with no grace period). Thus, the grant element is zero for a loan carrying a 10 percent interest rate, 100 percent for an outright grant, and something in-between for other loans. The Development Assistance Committee (DAC) classifies aid flows into three broad categories. Official Development Assistance (ODA) is the largest, consisting of aid provided by donor governments to low and middle income countries. Official Assistance (OA) is aid provided by governments...
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...Future Strategic Direction for Foreign Aid Canada TO: Foreign Aid Canada's Executive Management Team From: Pat Innes Subject: Review of the future direction of Foreign Aid Canada Executive Summary: Introduction: The purpose of this report is to provide a strategic analysis of the alternatives available. The report will also provide a recommendations that will: • That Foreign Aid Canada (FAC) will able to meet its new mandate of joining the fight against AIDS. • Meet the criteria set out by the CIDA officials • Ensure that Foreign Aid Canada (FAC) This report will also provide analysis of the company's current situation and present all strategic and operational issues. The report also includes instructions on how to implement the recommendation should the owners adopt the alternative suggested by this report. Situational Analysis: Mission Statement: Foreign Aid Canada provides humanitarian, emergency relief, development assistance through agricultural, water and irrigation projects, and HIV/AIDS prevention and treatment to African and Asian countries in need. Vision Statement: Foreign Aid Canada vision is for a world with out unnecessary suffering. Strategic Goals/Targets: • Foreign Aid Canada (FAC) wants to ensure that their decision to join the fight against AIDS is done in the most efficient and cost effective way possible while also meeting the requirements...
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...Foreign Aid to Bangladesh With the population of 120 million and a GNP of US$170 (UNDP), Bangladesh remains heavily dependent on foreign aid for its development, socio-economic programmes and waging war in the Chittagong Hill Tracts (CHITTAGONG). Statistics indicate that military expenditure in Bangladesh is officially 15% of the budget. Bangladesh spends about US$400 million on defense annually. Official figures of military expenditure give a distorted picture. It is common knowledge that many military expenses, such as food, housing, infrastructure, are accounted for under other budgets and therefore are not marked as military expenses. According to unofficial sources, Bangladesh spends an extra $125 million on counter-insurgency in the CHITTAGONG annually. The USA, Great Britain and China continue to provide training to the Bangladesh armed forces. While Japan, USA, Middle Eastern and European countries continue to be the major aid donors to Bangladesh. The following table shows the amount of financial aid Bangladesh was receiving in 1988-91 when the regime was at the height of genocidal campaign in the CHITTAGONG, unfortunately the trend still continues. Increasingly donor governments have made human rights an issue in the disbursement of development aid. Up to now, however, donor governments have not been willing to apply the human rights criterion at all strictly. In Bangladesh they have shied away from making aid conditional on the observance of human rights in the...
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...Since the beginning of developed countries, foreign aid has been used as a method of giving help in political, economical, and social regions for the betterment of other nations. Defined as “economic, technical, or military aid given by one nation to another…” (Dictionary.com), it has long been seen as a form of investing in a territory’s future. Since the end of WWII, the United States of America has been a large contributor of foreign aid, spending billions of dollars each year on countries such as Syria, Iraq, Egypt, Ukraine, and other strategic partners of the US. Supplying them with food, weapons, and other basic war-based necessities has predominantly been the form of foreign support. Most recently, however, the moral and physical dilemma of refugees has become a prominent form of giving foreign assistance--but we don’t allow nearly enough foreigners. As one of the most important documents in the history of the world, the Declaration of Independence famously states that “all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed...” (Declaration of Independence 2, emphasis added). Though this is directed primarily towards the American people, it has long since stood as a symbol of peace, truth,...
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...Strategic option for HIV/AIDS operation in Asia and Africa EXECUTIVE SUMMARY: Foreign Aid Canada (FAC) is a charitable organization whose mandate is to provide humanitarian aid in Asian and African Regions through Relief and Development projects. FAC's new mandate includes providing treatments for HIV/AIDS in these regions as of 2013. FAC's Strategic goal is to provide help to 3000-6000 patients in these HIV/AIDS stricken regions, while maintaining a cost of less than $700/patient /year and keeping its Support to Activity Service cost ratio less than 20%. Two alternatives are evaluated. The First alternative is to build 2 AIDS clinics and the second alternative is to operate 4 mobile clinics. It is recommended that FAC accept alternative 2 and operate 4 Mobile clinics. INTRODUCTION The purpose of this report is to analyze FAC's current business situation, evaluate business opportunities and provide recommended course of action. To achieve this, the report will provide a situational analysis, an analysis of alternatives, recommendations on strategic and operational issues and an implementation plan. SITUATIONAL ANALYSIS Mission: FAC's revised mandate is to provide humanitarian emergency relief, development assistance, through agricultural, water, and irrigation projects, and HIV/AIDS prevention and treatment programs in African and Asian countries in need. Strategic Goals: 1. Undertake AIDS project that will treat between 3000-6000 AIDS patients per year...
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...of foreign aid to Africa African continent has struggled with chronic poverty and under-development. Hundreds of billions of dollars have been given to African governments. More billions were lent to these same governments. Countless tons of food have inundated the continent, and swarms of consultants, experts, and administrator have descended to solve Africa’s problems. However the state of development in Africa is no better today than it was when all this started. Per capita income, for most of Africa, is either stagnant or declining. For this debate analysis I will address the different types of aids foreign nations give to African countries. I will also discuss the debate of the advantages and disadvantages of the provision of foreign aid to Africa. In the end I will provide a conclusion on what I think should be done. Over the past 6o years at least $1 trillion of development-related aid has been transferred from rich countries to Africa. Yet real per capita income today is lower than it was in the 1970s, and more than 50% of the population over 350 million people live on less than a dollar a day, a figure that has nearly doubled in two decades. Food aid is the source of the international aid system, although it represents only a small proportion of total aid. With the help of international emergency response, famines and other natural and human-made disasters no longer kill in the numbers they used to prior to the 1980s. Development aid is...
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...PROPOSAL TO EVALUATE THE IMPACT THAT FOREIGN AID HAS HAD ON DEVELOPMENT IN KENYA RESEARCH STUDIES MOD001774 SHIRLEY JONES SID 1223384 FACULTY OF HEALTH, SOCIAL CARE AND EDUCATION 2012/13 1 SID 1223384 ABSTRACT The aim of this study is to evaluate the impact of foreign aid on development in Kenya. The study will investigate the effect that foreign aid has had on development, appraising its benefits as well as exposing its shortcomings. Judging from the level of aid that the developing world receives and the economic development that takes place in third world countries, there appears to be an inverse relationship between aid and development. With this continuing debate, my interest of study has been to find out foreign aid’s impact to development in Kenya as it is dependent of aid but poverty still seems impossibility in the country for many decades. Therefore, the study will seek to expose these pitfalls of foreign assistance to a nation’s growth and development, using the Kenyan example to illustrate this relationship. The prevailing research methodology shall be of a qualitative positivist nature. Debates still exist around foreign aid dependency and economic development in the “Third World” countries as despite the input from developed countries there hasn’t been much change witnessed in the developing nations which are still drowning in poverty since 1960’s. The study will highlight on the demerit of excess foreign aid has development whereby the more dependent...
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...Introduction: Foreign Aid any capital inflow or other assistance given to a country which would not generally have been provided by natural market forces. In Bangladesh, foreign aid serves to bridge the gap between savings and investments and make up the deficits in the balance of payments. Foreign aid is a major means of financing the country's economic development. Economic literature generally classifies foreign aid into four main types. First, the long-term loans are usually repayable by the recipient country in foreign currency over ten or twenty years. Secondly, the soft loans repayable in local currency or in foreign currency but over a much longer period and with very low interest rates. The softest are the straight grants often given to the less developed countries. Sale of surplus products to a country in return for payment in the country's local currency is the third type and finally, the technical assistance given to the developing countries comprises the fourth type of foreign aid. Foreign aid is more like an investment in a risky market situation. The relative weighting of advantages and disadvantages depends on the planning behind the foreign aid and how well-orchestrated it is. Economic advantages: stimulated economic development in the receiver's country (better infrastructure, more education etc.) leads to economic growth. It can also create jobs as increased investment leads to more employment; this means less needs to be spent on unemployment benefits...
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...Analyse debates about foreign aid to improve health outcomes in a particular country or region. In your opinion, what is needed to improve health outcomes in poor (aid recipient) countries and/or communities? South Sudan South Sudan separated from Sudan and gained its independence in 2011. This world's newest country has the third-largest oil reserves in Sub-Saharan Africa and yet it has one of the world's poorest population --- 50.6% of a population of, approximately 11 million people, is living below the national poverty line. From 2006 to 2010, South Sudan received approximately one billion US dollars from foreign aid and a total of $1.4 billion US dollars one year after its independence. Sharing an oil-rich border with North Sudan, 98% of the government's budget relies on its oil revenue, What is the role of foreign aid in South Sudan? Foreign aid agencies have contributed billions of dollars during the period when South Sudan is signing the Comprehensive Peace Agreement (CPA) and after its independence in 2011 (Ajak, Larson, & Pritchett, 2013). This money didn’t go directly to South Sudan's government. But it funded almost everything including water, food, security training, drugs, textbooks and a range of other services. Also, 4/5 of health care in South Sudan is provided by outside groups. Services and funding are provided by a number of national and international NGOs and the United Nations (UN) agencies that operate in the region...
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...The thesis examines the impact of aid on Bangladesh and the inability of aid to lay the foundations for the country’s solid economic growth. It is argued that while aid has helped to sustain the present levels of per capita national output, it has been relatively ineffective in inducing the qualitative changes needed for achieving significant increases in production and improvement in income distribution. Findings imply that donors have responded as a group to changes in Bangladesh’s development requirements but major donors have also responded both to the country’s development requirements as well as their own interests. Donors’ own interests hamper aid effectiveness in the country’s development endeavours. The thesis investigates whether aid to Bangladesh has exerted any impact on the country’s economic growth. Following recent literature, the thesis examines whether the impact of aid on growth is conditional upon measures of policy and governance. This has not been attempted intensely in the past aid effectiveness literature. The thesis disaggregates total aid into its various components to examine whether aid effectiveness is conditional upon the type of aid. Results indicate that there is little evidence that foreign aid alone has contributed to economic growth in a country. But there is some evidence that aid can be effective at increasing growth while a country has good governance and macroeconomic policy environment in place. Given that Bangladesh suffers from high incidence...
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...Peace on Foreign Aid Dr. Toi Dennis Elaine Stewart SOC 300: Sociology of Developing Countries May 4, 2014 Introduction Afghanistan is a developing country; the country faced many difficulties soon after its independence. They faced difficulties in the development of their constitution and regulations. The selection of a leader was an issue and the first major task was to prepare a military for the defence and protection of the state. In order to resolve all these issues, finances became a priority. Despite having several problems, the country is gradually upgrading. Numerous countries supported Afghanistan in terms of finance, but the support provided by International Monetary Fund is significant. International Monetary Fund along with The World Bank has been serving Afghanistan since its partition. They have lent huge sums of money to the government so that they can continue with the progress of the state. According to the figures taken out by the Development Assistance Committee of OECD, an approximately twenty-billion dollars was been endowed to the state between 1960 through 2002. This huge amount assisted Afghanistan to rehabilitate its industries, factories and businesses. The twenty-billion dollars was derived from the three major international financial companies. They are The International Monetary Funds, Asian Development Banks and The World Bank. Foreign Aid to Afghanistan ...
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...The Effects of War and Peace on Foreign Aid Leon Moore Dr. Bernard Curry Soc 300 7/22/2015 Foreign aid encompasses the technical, military; humanitarian along with financial assistance is given to the developed nations for helping to foster economic, political as well as social progression within the developing countries. Foreign aid outcomes in the positive along with negative consequences for developing countries and has been the subject of decisions made by the government officials regarding their distribution. Discussed in this paper has been the effect of peace along with war on the foreign aid distribution, particular actions undertaken by government officials for relieving the issues out coming from the warfare as well as role of the foreign aid in the poverty and also warfare reduction within India. India has not been immune to intrastate along with interstate the warfare. Partnership within the India, as well as Pakistan, has commonly been rough showcased via many breakouts of war. Not until the 2nd domestic war of the year 1965, which worldwide States stepped in for providing the foreign aid for advancing its self-seeking programs. The US failed for offering any international help to the India like this had not remained in their benefit (Sahoo & Sethi, 2013). At the time, Nehru, the firm advocate for the socialist-led Indian government. He has supported for nationalization concerning the framework together with the business that threatened the privatization...
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...U.S. Foreign Aid in Developing Countries Over the past 40 years, the United States (U.S.), via the coordination of the Agency for International Development (AID), has provided several developing nations with billions of dollars in aid. Assistance is distributed within the following categories: bilateral development, economic assistance supporting U.S. political and security goals, humanitarian, multilateral economic contributions, military, the Millennium Challenge Corporation, and the Global AIDS Initiative. With so many great programs that offer economic and military assistance, my goal is to determine if any metrics have shown a positive impact within developing nations. Why does the United States give foreign aid? Idealists view foreign aid as a contemporary form of Rudyard Kipling’s ‘White Man’s Burden” whose goal was to uplift those worse off than ourselves out of poverty. The White Man’s Burden by Rudyard Kipling “…Take up the White Man's burden-- The savage wars of peace-- Fill full the mouth of Famine, And bid the sickness cease; And when your goal is nearest (The end for others sought) Watch sloth and heathen folly Bring all your hope to naught.….” While Kipling may have been optimistic, reality shows that foreign aid is a necessity. Foreign aid goals include 1) security by fighting terrorism in the United States and abroad, (2) a financial gain by promoting exports, and (3) humanitarianism. Metrics have not provided a true depiction of the...
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...Introduction The impact of Foreign Aid on the growth and development of less Developed Countries (LDCs) is a matter of strategic importance for the policy makers of these countries in framing their future economic programs and strategies. There has been a significant increase in the flow of foreign aid in the developing countries (Figure 1&2).According to Alberto Alesina, foreign aid is determined by political condition, economic needs and policy considerations of recipients. Despite the advancement of technology and infrastructure, a large number of developing countries still face the acute shortage of basic amenities of life such as Food and shelter. Thus, the influx of foreign aid can be a crucial factor to address these issues. Figure 1 FINN - 321 2 Research Paper Figure 2 The economic theory suggests positive effects of investment on the national income of the country. John Maynard Keynes in his most famous book The Theory of Employment, Interest and Money, argued that the national income of the country increase by more than the amount of investment by a phenomenon known as the MULTIPLER EFFECT. The qualitative effects of the investment such as Foreign Aid include the inflow of new technology, alleviation of poverty and establishment of infrastructure in the host economy. Thus, the increase of Foreign Aid is a positive sign for the future growth of a developing economy. The main objective of this empirical project is to analyze the effects of Foreign Aid on the growth rates...
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