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Foreign Aid: Charity with a Catch

Over the past few decades, governments, non-governmental organizations, and private individuals have recognized the need to give help to poor countries through aid. Foreign aid, or development assistance, has been used for well over half a century since the devastating effects of World War II. Wealthy countries have always been criticized by charity organizations, lobby groups, and celebrities about the conditions of the aid they give to the not-so-wealthy countries. It is important for us to understand this important issue in order to learn more on how everyone can improve the state of the world's poor.

There is no clear formula that will end the world's poverty, but proponents of foreign aid believe that it will save millions of people. Supporters say that foreign assistance has often been effective in meeting its goals. Aid was effective in helping to rebuild Europe after World War II. With respect to development, aid helped get rid of illnesses and diseases such as polio and small pox, increases life expectancy, and reduces fertility rates around the world. Foreign aid can do little to prevent earthquakes, but it can lessen the severity of droughts and famine by encouraging improved farming methods or using better technology.

Just as there are supporters of foreign aid, there are also many people who criticize aid programs. One argument is that foreign aid does not contribute significantly to economic progress in developing countries. Aid that is intended to promote development may enable some corrupt governments to divert money to other, non-related activities. Aid is wasted in countries that do not have the technical or administrative ability to take in and use it properly. Although the intention of foreign aid is good, it is often inefficient and impractical, often resulting in recipient countries being worst off than they were before they were receiving help.

The question of aid effectiveness has been a much debated subject between critics and aid agencies. Aid agencies are always looking for new ways to improve aid effectiveness, such as placing conditions on the money given to poorer countries, and improving organizational skills of aid organizations and support for improved governance. Canada's contribution to foreign aid and development assistance has been less than admirable. A United Nations commission suggested that donor countries donate a minimum of 0.7% of their GDP to foreign aid. Canada's contribution amounts to about 0.24% of its GDP. Norway and other Scandinavian countries are the only ones that meet or exceed the UN target for official development assistance.

Despite decades of aid assistance, overwhelming development goals remain and governments strive to maximize the impact of future aid. The future of foreign aid is gloomy as donor countries search for how it will benefit them in the long run. Critics argue that if nothing is done to change the way aid is given, it will soon just fade away. How can we ensure that aid is being used properly and that it is helping the right people? Should aid be in the form of loans, grants, or something else? These are just some of the many important questions that need to be answered as foreign aid struggles to meet the challenges of today.