Identify the most significant problems with the way foreign aid is presently dispensed by international lending institutions.

Identify the most significant problems with the way foreign aid is presently dispensed by international lending institutions. Then, discuss at least three (3) recommendations that you would make to remedy this situation so that food, medical, and financial assistance actually reaches the poor.

 

To start with, the main concern is whether aid reaches its targets.

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The targets are essentially projects and the end beneficiaries could be poor people, however, this is not necessarily true.

If a project is an infrastructure project, then the immediate results could only be felt over period of time.

So, the aid does not always take form of supplies, goods, and money.

There are many questions with the aid as follows:

  • How much of it reaches the target LDC?
  • Do local companies benefit from aid or aid goes back to the West as the contracting companies are Europe, US, Japan, etc.?
  • Does direct aid in the form of food/goods/supplies reach the poor and the needy?
  • Who may intercept food aid?
  • What is graft factor in aid provision?
  • What is the aid efficiency?
  • How long LDCs should stay dependent on aid from the West?

 

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