Business Law

Marco White

Ms. Granderson

February 22, 2013

English 105

Foreign Aid

Foreign aid is important to both the United States and third world countries because of the positive influence it has on the neighboring countries. But the debts should not be forgiven when it is used for the wrong reasons. Foreign aid is called official development assistance, also known as O.D.A. Foreign aid is financing from governments either directly through their bilateral aid agencies or indirectly through multilateral agencies like the world bank that's focused on poverty and improvement in the lives of poor people. Foreign aid is often regarded as

being too much, or wasted on corrupt recipient governments despite any good intentions from donor countries.

Both the quantity and quality of aid have been poor and donor nations have not been held to account. One of the challenges here is the definition of aid itself . The concept of aid has been around for about fourty years and it was meant to capture how wealthy countries are making a difference in the lives if poor people and poor countries. It is also meant to capture their contributions so that it tells us a lot more about what a country like Germany or the United States is doing for Tanzania than what is actually happening on the ground in Tanzania and what the impact of that work is. There's a whole literature that's come up around the impact and how we find out the real value of what we've invested in, that's different than just tracking who's putting in what.

There are numerous forms of aid, from humanitarian emergency assistance, to food aid and military assistance. Development aid has long been recognized as crucial to help poor developing nations grow out of poverty (Toussaint 1999: 142). But many nations never get the chance to see the helpful funds from their neighboring countries. It has been hard to explain what foreign aid does well, we find it easier to say when aid projects have worked at a project level like a...