The Necessity of Foreign Aid - Essay Example

Several decades ago, the world was separated into two major separate groups, the rich, which included the likes of Japan, the US, and Australia, and the poor nations of Africa, Brazil, and many more. There was a need to assist the poor nations that were suffering economically. Poor living standards, diseases such as Polio, Small Pox continued to undermine the growth of these nations. Developed countries had to step in as moral responsibility to assist such nations. The idea of foreign aid came in place.

Since 1960, major countries especially the United States have spent millions of dollars on foreign aid. Nevertheless, several decades down the line, major problems are still persistent, begging the questions of the effectiveness of foreign aid (Easterly, 12). Foreign Aid can be a good investment and equally a waste of resources and money. How foreign aid is used determines its success. According to Kristof (6), there is no effectiveness in foreign aid. It thus depends on additional factors, mainly governance.

Reports indicate that a lot of money given to poor nations just to end up in corrupt official’s pockets, predominantly in Africa. Unfortunately, most of the poor countries are characterized by corruption, inefficient and ineffective use of resources. Giving huge amounts of money as aid cannot solve problems that stem from historical decades. For foreign aid to be effective there is a need for tackling the problems from within. Various approaches such as offering education, provision of healthcare, and job creation are essential (Kristof, 7).

People who are healthy and educated are able to invest and earn their way out of poverty. Donors need to ensure that their projects are effective by dealing with the local people and constant monitoring and evaluation.