Foreign Aid
Foreign aid is an extension of economic assistance from one nation to another. IT is an instrument that a developed or industrialized country would use to achieve either political, economic, and military power. Foreign aid also is used for humanitarian concerns, this unfortunately is the reason least used. Countries that receive foreign aid are usually developing countries in the third world. There are many reasons why a country would need to receive foreign assistance, such as environmental problems, medical assistance, and the main one being poverty. Poverty is often due to the conditions where you live, and as a result your quality of living is poor. The people in these countries are unable to provide their families with the daily necessities for living such as, clothes, food and even shelter. The countries, which receive foreign aid, are not just getting free money, there is a debt connected, it known as “ The Debt Trap”. A developing country that receives help often must pay back an amount of interest on money that they borrowed, even if it is in large amount. Foreign aid is given to poverty-stricken countries, who have a limited supply of financial resource and need the assistance from another country. Wh
y are they being told that for what help they do receive they must pay back a certain percent? Foreign aid was developed to assist countries that need additional finical help and there should not be a debt trap connected to the help they receive. The traditional goal of economic development had been to improve the standard of living. Usually this suggests increased private consumption and a higher quality of consumer goods. Economic development also implies higher standards , with improved public services in education, health, welfare and utilities. In the world today although some goals may have higher priorities, but there are still vital objectives and are sought in various ways. A developing country can choose to emphasize the policy which seeks the maximum expansion of production. The government redistributes income when maximum efforts are made to increase employment. No country had managed to attain economic development within the framework of our modern technological and industrial civilization without benefit of contact with more developed countries. (Alpert, 67) This fact is generally recognized there is a tendency throughout the Third World to reduce the understanding with and the reliance of the outside help, developed country in particular like Canada. Therefore it is natural that political and economic reasons alike, the developing countries desire to strengthen their independence by putting the main importance on developing their own domestic economy. They desire to reorganize their international relations with the developed countries on a basis of equality, with equal benefits to both sides. Foreign aid is complicated by the fact that there are several accepted reasons for the United States and Canada to extend assistance to other countries. Each of the reasons lead to different sets of criteria for determining whether a country should receive aid and how much. Since several criteria often steer to conflicting conclusions, it is necessary in each case to identify the nature of the United States and Canada’s interests in particular country before trying to evaluate an aid program. A second complication in judging aid programs is that of different types of assistance, loans, development grants, military assistance, and technical cooperation. Making a clear cut separation among types of aid according to both their nature and their function has caused separation of the categories of aid over the years. This change in language and coverage has added to the confusion and processes of foreign assistance. The main objective of foreign assistance, as of many other tools of foreign policy is to produce a political and economic environment in which Canada and the United States can best pursue their own social
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Approximate Word count = 1849
Approximate Pages = 7 (250 words per page double spaced)
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