What is foreign Aid - PowerPoint PPT Presentation

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What is foreign Aid

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Advantages and disadvantages of foreign Aid – PowerPoint PPT presentation

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Title: What is foreign Aid


1
Foreign Aid.
  • Done by Birman Kalulu

2
What is foreign Aid
  • It is the assistance given to another state from
    another state as a way of assisting them either
    through financial means or through food, clothing
    and many other means of assistance to reduce
    their burden or crisis being faced.
  • Foreign aid may come as a means through
    humanitarian assistance. A practical example is
    the assistance which was given to the Malaysian
    people when they experienced severe floods caused
    by the tsunamis. Food, clothing and medical
    supplies were sent to Malaysia to help out with
    those hit the most.
  • Foreign aid may also come as means of assisting
    a state who may not have enough resources to
    accomplish a particular task at hand through
    means of monetary assistance. Zambia was assisted
    with funds to accomplish road projects and
    building of infrastructure.

3
Advantages of Foreign Aid
  • Foreign aid tends to save life of those affected.
    For example when Haiti was hit by a natural
    disaster, the government of Haiti was given
    foreign aid as means of rebuilding affected parts
    of the country.
  • Foreign aid helps in rebuilding livelihoods of
    affected people through providing them with
    foods, some form of income to help in rebuilding
    their own lives and many others.
  • Foreign aid is important in supporting
    agriculture projects such as animal husbandry,
    improved pest control methods that are effective.
    For example in the case of Zambia were army worms
    infested most maize crops in the country, foreign
    aid become useful in combating the infestation.
  • Foreign aid aids in providing medicines. A
    country may have high shortage of medicines in
    their inventories, so foreign aid tends to fill
    up the gaps so that the smooth running of the
    health facilities is maintained or enhanced.

4
Continuation
  • Foreign aid helps in encouraging development of a
    nation. When foreign aid is given to a particular
    nation developmental projects begin to be
    implemented such as building of road networks to
    easy the provisions of goods and services to the
    intended market and also the building of schools
    such as secondary schools in Northern Province to
    decongest the few available schools and allow
    student teacher ratio to be reduced and also to
    limit the distance that pupils cover to reach the
    nearest school which tends to be many kilometer
    away and allow to take fewer distance since the
    school has been brought closer to the pupil in
    need of the service.
  • Support in tapping of natural resources. Foreign
    aid helps to assist those nations who are unable
    to tap into their natural resources through
    providing them with equipment's necessary to do
    the task at hand and giving them experts who are
    able to execute the job effectively to the
    satisfaction of management and through the job
    creation which leads to development of a nation.

5
continuation
  • Foreign aid helps in improving sanitation of the
    nation or community affected. Most developing
    nations are poor in terms of sanitation. So when
    foreign aid is given to them, they improve their
    drinking water, drainage systems are created if
    they were not there and if they were not there
    and if they were there, they are maintained or
    improved to the standard required. Through this
    livelihoods and also the standard of living.

6
Disadvantages of Foreign Aid.
  • Foreign aid can lead to corruption becoming a
    risk factor. Politicians who receive aid on
    behalf of the nation tends to divert the funds
    for their personal gain and not for the intended
    purpose or allocation.
  • Foreign aid may lead to political and economical
    pressure. Donors may tend to hip up pressure on
    the recipient for favors in terms of having
    certain privileges like removal of tax from
    certain commodities so that they can make profit.
  • Foreign aid tends to benefit foreign based
    enterprise with some hidden agenda. The aid given
    to a nation usually has some hidden clause in
    them so as their firms can benefit more than the
    local firms.

7
Continuation.
  • Foreign aid tends to overlook small scale
    farmers. Large scale famers who have large
    agricultural projects tend to be considered as
    projects worth undertaking leaving out small
    scale famers projects seen as a waste of
    resources.
  • Foreign aid tends to benefit wealthy
    cooperation's and wealthy employers. When aid is
    given to a nation usually big firms and well to
    do employers tend to benefit from the aid leaving
    out small individuals and farmers.

8
Images of foreign aid
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