Do foreign aids benefit donor countries more than the recipients?


This essay is a comparison on the benefits of foreign aids to donor countries and the recipients. The paper further discusses the origin of foreign aids and the social and economical impacts of foreign aids to both parties.

Foreign aid dates back to the World War II. This was after the USA realized that to fight communism, it had to provide aid to both the developing and underdeveloped countries. It was with the aim of alleviating hunger and poverty and increasing production through capitalism (Vermann & Bandyopadhyay, 2013).

Donor countries are beneficiaries of foreign aids as much as the recipients are concerned. To begin with, support of donor interest through foreign aids. Donor countries ensure that their political concerns especially the international ones are held up by the recipients for them to benefit. Economic interests which include trading with the recipients to expand their foreign market for their produce are also benefits to the donor nations. In addition, spread of culture through the foreign aid is another key gain. Donor countries take advantage of the aids and use the opportunity to spread their beliefs to the recipients.

Recipients of foreign aids who are majorly the developing and the underdeveloped countries are the main beneficiaries. First, it’s through the improvement of their standards of living. The countries with the low economic status are given foreign aid to at least reduce the number of people living below the poverty line. Second, it’s the humanitarian effort. In order to uphold democracy and the human rights, the donor countries put measures on the recipient that to receive foreign aids, a country has to support the two virtues. According to Fuller (2002), investment opportunities are also some of the advantages accrued to the recipients. The donor countries establish production and manufacturing industries that exploit their raw materials as well as offer revenues and job opportunities to the recipient’s individuals.


It can be concluded that the recipients are more advantaged to the foreign aids than the donor countries. Even though foreign aids are of importance, corruption, neo-colonialism and embezzlement of funds are some of the challenges that face the two parties.

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