U.S International Aid

countries fight for aid

Official Developmental Assistance hasnt reach 0.7% annually.

0.7% percent is supposed to come out of the Gross National Income.

Some countries end up 150 billion short each year.

Its more often now adays that countries dont reach the target.

Rich countries rarely meet this target.

The 0.7% target is hard to reach.

Increase in Foreign debt services

Donor country can burden the receiving country by adding interest to what needs to be paid.

By adding interest to the country to pay back, makes them less likely to depend on the rich country.

Not adding interest onto the loaned money, could make the poor country always expect help.

Dependence of foreign loan

Aid also covers natural disaster, not just poverty.

Natural disasters statistics increase each year.

Natural disasters are eaerthquakes, floods, cyclones, volcanic eruptions, etc.

motivation of donor countries

Aid is used as a lever to impose structural adjustment

Tackle poverty on ethical grounds

Proactive pursuit of strategic interests.

Promotes domestic interest of donor countries

People in the poor country may invest once they see the country doing well.

Rich nations use aid as a lever to open the poor country's door to sell rich nations products

Countries make agreements if they loan their money, like maybe making the poor country buy the rich countries goods.

Negative consequences of aid

Countries receiving aid have less control and decision making on how the aid money is spent.

The rich countries who supplies the money has final say basically.

Which makes sense because the rich country is supplying the aid.

Aid is wasted on countries that have no technical or administrative ability to use the aid properly.

Countries that receive aid, typically doesnt have the administration.

When countries need aid they

Exploitation by Donor countries

Dependent of imported raw material from donor country.

Rich countries make money because their products are in demand.

Discourage domestic agriculture output.

So the rich country can sell their own product

Globalise the world

Making world relationships better.

Nations tend to be stronger when united with other countries.