There is a definite difference in Economic development and Economic Aid. World's most economies affected by conflicts are supposed to be improved with the economic aid by the developed economies in the form of donations or aid through the NGOs.
It is very important to understand the role of economic aid that it has positive or negative effects. On the other side the questions arises why devloped countries provide aid? What are the stakes for these countries into the conflicted zones. The impact of stakeholders should be analyzed in context of conflict.
Economic stability is more important for any economy in the world and it is ensured with the continuity in the government policies and existance.
ReplyDeleteThe development programs by the fundings from the outside of the country are less useful as country's own contribution for the development.
That is partially true. Development programs for impoverished nations are a sign of relief. USAID for example, has contributed greatly in the continent of Africa, not to forget the great contribution from all developed countries to Haiti after the recent catastrophe.
ReplyDeleteOutside funding can be more useful if they are negotiated on better terms. Obviously, one nation's own contribution is better, but it is not always possible in case of LDCs. Back in the past, the Marshall Plan is a perfect example of how foreign aid revived European economies.
Well Aid may be given by individuals, private organisations, or governments. Standards delimiting exactly the kinds of transfers that count as aid vary. For example, aid figures may or may not include transfers for military use: to cite one instance, the United States included military assistance in its aid figure until 1957 but no longer does.Another issue is whether to count remittances by expatriate workers to family members in their home countries as aid. This constitutes a large but difficult to measure international flow of funds.
ReplyDelete@Usama, Remittances and AID as in international assistance are different concepts as far as I know. And the United States divides aid into two categories, Military and Economic. Both fall under the concept of aid. If you see the Congressional Research Service Report "U.S Foreign Aid to Israel" you will see that it explicitly mentions both, military as well as economic grants.
ReplyDeleteI agree with the views of all of you but I am of the view that Economic Aid in way or the other are damaging our external sovereignty we people are more relying on them as compared to our own stakes. Our policies are more vulnerable towards due to external influence from those countries who are major donor for Economic Aid to our country.
ReplyDelete@ Usama,Siddique has rightly said about the Remittances. These are the money transfered from expatriate families to their country. This can not be regarded as Aid. The question here arises what is the overall impact of Economic Aid in terms of our Policies.
ReplyDelete$7.89 billion has given to Pakistan as military assistance since 9/11which made Pakistan able to fight against terrorism, another $3.1 billion allocated to economic and development assistance aid, during the same period, I strongly feel foreign aid can’t improve our wellbeing, it can’t foster our economic growth, it not increases the aggregate demand of our country but still foreign aid has positive impacts as a short term solution.
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