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What are the advantages and
disadvantages of foreign aid?
The advantages of aid are:
-Helps a country recover from crisis
- Allows growth of a country if it is used with sound economic policies.
-Disaster relief - e.g. Tsunami
-eradication of diseases, e.g. smallpox
The Disadvantages of aid are:
-Some governments are corrupt and money may not go where it needs to go
-Countries can become reliant on aid - increased dependency
- Aid can help support authoritarian regimes.
- Aid can be wasted on glorifying the aid organisation
-Aid can discourage development and hinder foreign investment. This is because the recipient country's
currency will rise in value and then their exports become more expensive to foreign countries. Foreign
aid may undermine foreign investment.
-aid can hinder the emergence of an entrepreneurial class
The advantages of aid are:
-Helps a country recover from crisis
- Allows growth of a country if it is used with sound economic policies.
-Disaster relief - e.g. Tsunami
-eradication of diseases, e.g. smallpox
The Disadvantages of aid are:
-Some governments are corrupt and money may not go where it needs to go
-Countries can become reliant on aid - increased dependency
- Aid can help support authoritarian regimes.
- Aid can be wasted on glorifying the aid organisation
-Aid can discourage development and hinder foreign investment. This is because the recipient country's
currency will rise in value and then their exports become more expensive to foreign countries. Foreign
aid may undermine foreign investment.
-aid can hinder the emergence of an entrepreneurial class
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Answered in EDUCATION
What are the Pros and Cons Foreign Aid?
Pro's: - Humanitarian aid helps those in severe affected areas, either because of war or
natural disaster receive some form of support while they try and get their lives back (MORE)
17 people found this useful
Answered in WAR AND MILITARY HISTORY
How much foreign aid does palestine get?
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