Advantages and Disadvantages of Giving International Aid to Poor Countries

Advantages and disadvantages of providing international aid to poor countries Today, poor countries are receiving assistance from the international community. Such aid is regarded as good behavior by donor countries and international organizations, but it has led to excessive dependence on developing countries. They are accustomed to estimating and including international aid in the state budget to reduce the trade deficit. Foreign aid is considered necessary for poor countries to break the cycle of poverty that links citizens to low productivity areas so that their economies do not weaken.

In this article we will examine the concept of remittance in the developing countries, core strengths and disadvantages of remittance and link these strengths and weaknesses to other forms of International Financial Transfer (IFT). From my research, I also provide a reasonable amount of facts and figures to show the impact of remittance on developing countries. According to new data, remittance to developing countries reached 328 billion dollars in 2008. According to the World Bank, remittances account for one-third (1/3) of the world's external fund procurement. One sixth of the Earth's population benefits in some way from remittance flow. In some countries, the total remittance exceeds 35% of your country's gross domestic product.

International Capital Flow Poor countries (and wealthy countries) often need international investment to fund projects. International assistance can be sometimes aided, but development projects with government funds are frustrating. Unlike globalization critics, we do not believe that the failure of international aid is the reason for increased aid and debt forgiveness. Foreign aid supported inefficient, often corrupt governments and their interventionist economic policy brought so much suffering. Even the World Bank (2002a, 2002b) came to recognize that establishing a market-oriented institution is essential for international aid efforts to succeed.