Topic > Importance of Foreign Aid in Developing Nations

Foreign aid is defined as economic, technical, or military aid provided by one nation to another for the purpose of relief and rehabilitation, economic stabilization, or defense mutual of the nation. Some experts argue that the aid has expanded government bureaucracies, perpetuated bad governance, enriched elites in poor countries or was simply wasted. Others argue that while aid has sometimes failed, it has supported poverty reduction and growth in some countries and prevented worse outcomes in others. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Infrastructure: To build roads, bridges, institutions and sewage systems are built, giving people the ability to be mobile and have access to basic necessities such as electricity and running water. Agricultural technology improvements: The improvements concern the infrastructure of agricultural businesses in the beneficiary countries. Education: By building classrooms, teachers receive training and children obtain basic educational needs. Health: Develop health facilities such as vaccinations, mosquito nets, safe drinking water, access to hygiene education and basic sanitation. Humanitarian issues and natural disaster emergencies: Life-saving support is provided to people affected and potentially displaced by natural disasters, emergency shelters are built for people affected by violence, and counseling services are made available. National Security: Recipient countries can fight terrorism with the help of foreign aid as it reduces poverty, weak institutions and corruption which can help strengthen good governance, transparency and economy. Another reason why foreign aid is important is how it fosters a favorable diplomatic relationship between the donor and the recipient. Impoverished nations receiving aid can eventually become independent and move toward democratic foundations with the help of donor countries. There are hundreds of different foreign aid donors among them. One of the best-known foreign aid donors comes in the form of official development assistance (ODA). ODA provides foreign aid to poor countries in the form of grants and loans. One of the best-known and largest providers of foreign aid is the International Development Association (IDA), which is part of the World Bank and has 173 shareholders who provide grants and loans to 77 countries around the world, of which 39 are found in Africa. The main objective of the IDA is to reduce inequality, increase economic growth and improve people's living conditions. Funds are given directly to the education, water, sanitation, agriculture and infrastructure sectors. The IDA provides little or no interest on grants and loans and allows a grace period of up to 10 years and also allows the recipient country to make debt payments for up to 40 years. Since 1960, IDA has provided $312 billion in investments to 112 poor nations. An average of $19 billion in grants and loans has been awarded in the past three years alone. Foreign aid makes a real difference to people living in poverty. It provides access to basic necessities and provides people with the essential conditions to live a peaceful and safe life.