Foreign Aid and Economic Development

Does foreign aid boost hinder economic development?

In theoretic perspectives, foreign aid should be capable of triggering social and economic growth, mostly in developing nations through financial assistance offered by affluent developed nations. Thereafter, this foreign aid should trigger economic growth by improving infrastructure, introducing modern technologies and innovative ideas, reinforcing fundamental social amenities, for instance, education, health and political structures (Brautigam, Deborah & Stephen, 2004)

In addition, the aid offers humanitarian support in the course of crises, and replenishes the economy after an economic downfall. However, the donors offer the aid on conditional basis. In most cases, only the countries with good governance receive the aid. Latin America shares similar features with Africa in terms of strong presidential features and poor legislature. For this reason, Latin America embraces the aspect of accountability and reshapes their weak institutions by enhancing the rule of law and...
[ View Full Essay]