There are two words that many politicians like to shy awayand those two words are, "foreign aid. Their opinions are usually based on a case by case analysis. This extremely controversial topic involves whether or not to support the policy of foreign aid to needy or sometimes not so needy countries. What benefits does foreign aid have for the countries that receive it, and does it have any benefits for the countries who give?
In addition to financial flows, technical cooperation costs are included in ODA; but grants, loans, and credits for military purposes are excluded, and transfer payments to private individuals Foreign aid research paper in general not counted.
The same goes for donations from the public, commercial loans, and foreign direct investment FDI.
It is common to treat ODA and foreign aid as equivalent, but this can be misleading. Assistance funded by nongovernmental organizations NGOs including church-based agencies has grown significantly in the past 25 years and now amounts to about one third of ODA.
All flows that fulfill the established criteria are now included in the aggregate measure of ODA, but NGO-funded contributions are not added.
For the data in this and subsequent paragraphs, see OECD, However, the UN target of 0. It is a widespread perception that foreign aid amounts to a very significant resource, in both absolute and relative terms, and that aid is not insignificant measured relative to developing country production and income.
At the same time, aid is much less sizeable when measured in relation to GNI or government budgets in the donor countries or in comparison with population size of aid-receiving countries. Moreover, aid has been on a declining trend since the early s as a share of GNI in recipient countries.
Most recipient countries receive aid to the order of 1.
Accordingly, the relative size of the aid inflow varies significantly among recipients, and while the With this background, modest expectations are advisable when analyzing the overall impact of past aid on development. In subsequent paragraphs, the historical and theoretical context of foreign aid is reviewed first.
This is followed by overviews of the empirical evidence on the allocation of aid and its impact on furthering growth and development in aid-receiving countries. The conclusion provides discussion and summary remarks. Historical and Theoretical Context Foreign aid in its modern form has roots back to the early s and intensified after the disruption that followed World War II.
The international economic system had collapsed, and war-ravaged Europe faced a critical shortage of capital and an acute need for physical reconstruction. The Marshall Plan, which was administered by the Organisation for European Economic Co-operation OEECthe predecessor of the OECD, was implemented on schedule, and its success fuelled highly optimistic expectations about the future effectiveness of foreign aid.
After the success of the Marshall Plan, the attention of industrialized nations turned to the developing countries, many of which became independent around Theoretical thinking on economic development at the macrolevel was informed by both the Harrod-Domar growth model which was extended into the two-gap model of Chenery and Strout and the Lewis dual-sector model framework; whereas standard microeconomic cost-benefit analysis CBA was relied on in project analysis.
CBA, on the other hand, assesses cost and benefits of individual microeconomic project interventions based on shadow prices for inputs and outputs and derives net present values and internal rates of return.
The major part of the rapidly increasing bilateral flows during the s came from the United States.Formulating Foreign Policy for Australia.
This 11 page paper puts forward a proposal for Australian foreign policy for the next two decades, with full justification in areas such as security and defense, trade and aid. Foreign Aid & Hunger. The subject of foreign aid is addressed in this 5 page paper which focuses on hunger around the world.
Special attention is paid to the current problem in North Korea, as they face mass starvation due to recent flooding episodes. This sample Foreign Aid Research Paper is published for educational and informational purposes only.
Like other free research paper examples it is not a custom research paper. If you need help with writing your assignment, please use research paper writing services and buy a research paper on any topic.
Yale economist Nancy Qian's new research paper on foreign aid is creating a lot of buzz by showing the flaws in prior research. Formulating Foreign Policy for Australia. This 11 page paper puts forward a proposal for Australian foreign policy for the next two decades, with full justification in areas such as security and defense, trade and aid.
Yale economist Nancy Qian's new research paper on foreign aid is creating a lot of buzz by showing the flaws in prior research.