A member firm of

Deloitte Touch Tohmatsu

DOES FOREIGN AID, AID

DEVELOPMENT OF A
COUNTRY ?

Prepared By:

Amra Zia

FOREIGN AID & DEVELOPMENT

FOREIGN AID
The international transfer of capital, goods, or services from a country
or international 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).

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

ORIGIN

Charter of United Nations

Second World War
The First Aid

ROLE OF FOREIGN AID GOOD OR BAD

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.

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 projects

FOREIGN AID, AID FOR DEVELOPMENT

A study of variety of political, strategic, and economic rationales
will support my argument, i.e.

BUT THIS
IS ONLY
ONE SIDE
OF

Absorptive capacity theory

Aid volatility.

Inflation due to increase in money in country

Other rationales include Aid tied to unjustified conditions,

uneven allocation of aid, lack of ownership, and a small
proportion to overall economic budget.

BASIC CRITERIA TO DETERMINE

How successful foreign aid is in promoting growth IN ANY
COUNTRY depends crucially on ;
Quality of foreign Aid
Quality of a recipient countrys Government and the economic
policies it pursues,
Care for economic sovereignty, Bureaucratic ills, corruption
etc.

So.

WHERE WE ARE - ON GLOBE

QUALITY OF AID: TOTAL AID SINCE INDEPENDENCE

In total, the United States obligated nearly $75 billion to

Pakistan between 1948 and 2014

QUALITY OF AID: A BRIEF COMPARISON

QUALITY OF RECIPIENT COUNTRYS GOVERNMENT

QUALITY OF RECIPIENT COUNTRYS GOVERNMENT

CARE FOR ECONOMIC SOVEREIGNTY

QUALITY OF RECIPIENT COUNTRYS GOVERNMENT

BUREAUCRATIC ILLS

QUALITY OF RECIPIENT COUNTRYS GOVERNMENT

FOREIGN FUNDS FOR ENERGY PROJECTS AT MAY END

AIMS OF AID GIVERS

US Agencies
World Bank

UNCERTAINITY

AL QURAN

MAN GETS WHATEVER HE STRIVES FOR

Chapter 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

THANKS