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Foreign Aid

Jung-A. Foreign Aid. Learning objectives. Students will be able to tell the benefits that the aids have given to the society. Students will be able to tell the negative effects that aids have brought to the society.

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Foreign Aid

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  1. Jung-A Foreign Aid

  2. Learning objectives • Students will be able to tell the benefits that the aids have given to the society. • Students will be able to tell the negative effects that aids have brought to the society. • Students will be aware of the strengths and weaknesses of aids and think about the possible solutions to problems that aids bring.

  3. ? DOES AID MORE GOOD THAN HARM? ? • Will foreign aid eliminate poverty in the developing countries? ? ? Does foreign aid benefit the recipient countries? ?

  4. What is Foreign Aid? The international transfer of capital, goods, or services from a country or international organizationfor the benefit of the recipient country. - Britannica (the definition of ‘Foreign Aid’)

  5. What is Foreign AID? Capital, goods, services… Poor Countries Ethiopia, Zimbabwe, China, Ghana, the Philippines, Rich Countries The United States, Canada, France, the United Kingdom……

  6. The Positive Effects on both the donors and recipients Positive EFFECTS

  7. Security Implications to the donors 56 states in the world are far more vulnerable to • Terrorism • Weapons proliferation • Organized crime • Infectious disease • Armed conflict

  8. SAVE LIVES! • Immunizations • Eradications of small pox and polio • Significant progress against lethal, infectious diseases

  9. Negative effects Problems brought by Foreign Aid

  10. Egregiously Inefficient • Corruption in the recipient countries : aid money absorbed by corrupt governments • Technical assistance and transaction overhead costs - Congo Ministry of Finance, Patrice Bemba, “ only 25% of the donated money gets to us”

  11. Undermining self-sustainability • Creating a dangerous moral hazard - givelittle incentive for the local governments to reform - feed the bloated bureaucracies • Making regions even more dependent on aid - Deter free market and distort the local production - Crowd out local entrepreneurship - Per-capita food production in Africa has fallen in every year since the 1960s

  12. Inefficiency Continued… • one of the top grand recipient is …….. • China • Ethiopic, India, Tanzania and China • Huge population → per-capita figures down An article from Foreign Policy, in 2010 China 149 million dollars for Malaria ( 38 deaths reported) South Africa 122 million dollars for Malaria (about 2500 deaths reported)

  13. To sum up… Both Positive side and negative side exist These problems are not free from us.

  14. Possible Solutions… Better aid coordination mechanism → direct budget support Stricter evaluation of needs → local evaluation with the local people Fight against corruption and build self-sustainability → Strong internal anti-corruption bureau

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