This document discusses whether foreign aid is effective. It notes that while aid has achieved some short-term goals like visible interventions, critics argue it has not been as effective at long-term goals like poverty reduction and transforming recipient countries. Some evidence suggests aid undermines local systems and can have "perverse effects" unless countries have their own development leadership. The document also discusses debates around whether aid empowers or violates human rights in recipient countries. Overall, it examines perspectives both for and against foreign aid and whether it has truly been effective.

1. DOES FOREIGN AID REALLY WORK?
“As the wealthiest nation on Earth, I believe the United States has a moral
obligation to lead the fight against hunger and malnutrition to partner with
others”
- BARACK OBAMA
As foreign aid continues to change and develop in today’s world, it is targeted on
the achievement on key millennium goals. As simplistic as this question sounds,
it is worth thinking about the impact it has on various developing countries
across the globe.
Broadly speaking, the question can be interpreted in the following ways:
- Does it make a difference to poor people and does it lift them out of
poverty?
- Are poor countries better off with the aid received from time to time?
- Does it stifle economic growth of these poor countries?
It can be said that a vast majority of foreign aid received is ‘effective’ in terms of
achieving their objectives however, critics that argue against aid claim that there
is a scarcity of evidence to show that it has helped poverty reduction and has
assisted development in the countries receiving aid. Similarly, there is a
complexity in understanding the impact of aid and what it currently achieves
short - term rather than the long-term impacts of aid.
Evidence from critics arguing against aid has shown that, aid focuses on short-
term and visible interventions rather than ‘transforming’ the long-term goals of
poverty reduction. For example, a recent World Bank study argues that when
donors rely on their own systems to deliver aid, the effect is to undermine
recipient – country systems. Research from the London – based Overseas
Development Institute suggests that unless and until recipient countries have
acquired development leadership, aid tends to have “fairly powerful perverse
effects”. This goes to show that in the achievement of short-term goals and
tangible benefits, aid works. However, in the achievement of long-term goals, aid
does not work.
In my opinion, due to the growing awareness of aid as well as the
implementation of new strategies to make it better, national development
success will occur sooner than later. Although there is still an important role for
aid to play, donors need to understand the systematic problems that aid may
cause and carry out developing country assessments for aid to be more
beneficial.
Furthermore, foreign aid has now become a $100 billion dollar business and
continues to grow every day. So therefore, it is important to note that the short-
term political interests distort aid and disentangles the moral and ethical
assumptions that lies behind the belied that aid does good. Critics for foreign aid
argue that foreign aid is really on the wrong side of the stick with the world’s
debate between freedom and autocracy. However, it is claimed that aid agencies

2. side autocrats against the poor people who are trying to rise up, thus making aid
not on their side i.e. wrong freedom. Contrastingly, some critics argue that aid
given to any country; particularly public health makes a difference and saves
lives. Aid also educates children and feeds people thus making it effective. It has
also been said that rates of poverty have decreased over the last decade.
Therefore, it has made a difference.
The underlying questions are
- How can it be more effective?
- How can foreign aid make people develop a sense of their rights?
When looking at cases like infant mortality, it used to be a lot higher in the past,
than what it is today. However, it is said that foreign aid still ignores the rights of
the poor. For example, the Ethiopian Government in the past misused food aid by
giving it to ruling parties in government to share among their supporters rather
than the general public. This case received no protest under the human rights
watch. This confuses the benefits of aid and what it is actually supposed to be
used for.
However, village programs that educate villagers on how to use resources better
and education received from aid benefits create long lasting changes in people’s
lives. Although foreign aid only began in the 1950s, research suggests that it is
largely autocratic thus violating human rights and being an obstacle for
development.
BUT… Data continues to speak for itself. Foreign Aid has reduced poverty, death
and increased education amongst many other benefits.