IS FOREIGN AID IS A REAL AID

DOES FOREIGN AID, AID DEVELOPMENT OF A COUNTRY ?Prepared By: Amra Zia

A member firm ofDeloitte Touch TohmatsuPREPARED BY:AMRA ZIA 2FOREIGN AID & DEVELOPMENT

The international transfer ofcapital, goods, or services from a country orinternational organization for the benefit of the recipient country or its population. Aid can be economic, military, or emergency humanitarian (e.g., aid given following natural disasters).Foreign Aid

Economic growth, improvement in human welfare, quality of life, social well being, satisfying the populations needs and wants and ultimately human development.

Development

Charter of United NationsSecond World War The First AidOriginThe concept of aid or official development assistance takes root in charter of the United Nations adopted during the conference of San Francisco in June 26th 1945Rebuilding the world economy destroyed by the Second World War and promoting economic development worldwide has been the main concern of the world leaders since the 1950s .

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Limitations to such determination: Parallel flow of social and economic trends Absence of the universally accepted frame work for evaluation of various aid activities. Absence of the statistical data like in the low income populations of Asia, Africa and Latin America .So.Role of FOREIGN AID Good or bad

Foreign Aid, aid for development

South Korea and Taiwan were both aid recipients in 1950s and 1960s;now they are aid donors.Aid helped eradicate Polio, increase life expectancy, greatly reduce the incidence of small pox and reduce fertility rates around the world.In China an important reason of famine from 1958 to 1961 was the Chinese Government decision to refuse foreign aid After World War 2, Japan got a special plan of aid which is from America. Most of these aids were food aid and military orders. Now Japan is the nation with the greatest economic vigor and nearly reach the peak of worlds economy.Creation of employment opportunities while implementing donor funded projectsA study of variety of political, strategic, and economic rationales will support my argument, i.e.

Absorptive capacity theoryAid volatility.Inflation due to increase in money in countryOther rationales include Aid tied to unjustified conditions, uneven allocation of aid, lack of ownership, and a small proportion to overall economic budget.Foreign Aid, aid for development BUT THIS IS ONLY ONE SIDE OF PICTUREHow successful foreign aid is in promoting growth IN ANY COUNTRY depends crucially on ;Quality of foreign AidQuality of a recipient countrys Government and the economic policies it pursues, Care for economic sovereignty, Bureaucratic ills, corruption etc.

So.

BASIC CRITERIA TO DETERMINE

WHERE WE ARE - ON GLOBE

In total, the United States obligated nearly $75 billion to Pakistan between 1948 and 2014

Quality of aid: TOTAL AID SINCE INDEPENDENCE

Quality of aid: A brief comparison

Quality of Recipient countrys GovernmentCare for ECONOMIC SOVEREIGNTY

Quality of Recipient countrys GovernmentBureaucratic Ills

Quality of Recipient countrys Government

Quality of Recipient countrys GovernmentForeign funds for energy projects at may end

US AgenciesWorld BankAims of Aid Givers19UNCERTAINITY

AL QURAN MAN GETS WHATEVER HE STRIVES FORChapter 53 Surah Najm verse 39

GIVE A MAN A FISH ,AND YOU FEED HIM FOR A DAY ;TEACH A MAN TO FISH AND YOU GOT RID OF FEEDING HIM FOR A LIFE TIME

THANKS