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Economic Aid- does it help or hinder

developing countries?
By Matthew Mulley
Economic Aid
What is it?

Why do countries do it?


Initial Planning
- Water scarcity- rejected.

- Foreign Economic Aid – does it really help or hinder?

- Modification of the idea- After looking at foreign


economic aid to use two countries to compare and
contrast foreign economic aid in two different
continents .
Research
Sources- Foreign Economic Aid- Milton Friedman

Who gives foreign aid and why- Alberto Alesina, David Dollar

CIA world Fact Book

World Bank average life expectancy

World Bank – GDP levels

World Bank- Net Development Assistance – current in $

How did I go about doing it?


Criteria of judging foreign
aid effectiveness
Objectives of foreign aid, were they achieved and
were they realistic

Education Levels

Life expectancy

GDP levels

Levels of Absolute Poverty


Some of the issues with
foreign aid
Aid is often focused on former colonies

Aid can be focused in countries which are


strategically valuable

Aid is often embezzled by corrupt governments

 Aid often comes with strings attached (trade


agreements)
Some Conclusions
Foreign aid should be changed from transferring
resources from one country to another country
whom have autocratic governance and instead given
directly to people

Foreign aid does reduce poverty and inequality

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