Foreign Aid

•Contribute to improvement in the living conditions and economic dynamics

in developing countries

MOTIVES FOR Moral

DEVELOPMENT
Mutual Interests
AID
Commercial
Political and Strategic

Can’t transform process of stagnation into dynamic process of development

Moral Motives

Humanitarian Moral obligation to provide aid given

widespread poverty, malnutrition

Egalitarian Rich duty to help the poor

International Need and egalitarian justice applied on

Solidarity global scale

Reparation of past Western countries to repay due to their

wrongs exploitation
Mutual Interests Motives

World economy Economic relationships of poor/rich

interdependent countries

Global Threaten welfare and development of

environment poor/rich countries

Income gaps of Excessive gaps between poor and rich

poor/rich countries may lead to conflicts

Massive Reduce by enhancing the situation of

immigration developing countries

Poor and rich are mutually interdependent in a global society

Commercial Motives

Develop new • Aid as instrument of export promotion

markets
• Support firm exporting to developing
countries
Physical and Strategic Motives
Aid to cement the political ties between donors and client countries

European Colonial Maintain political, economic and cultural

Powers ties

United States Prevent from communist sphere of

influence
Perspectives on Development Aid

Orthodox View Aid contributes to economic and social

development and to the solution of
problems in developing countries

Radical Left View Aid promotes the penetration of capitalist

market relationships to developing
countries and leads to dependence and
underdevelopment

Right-Wing Neo- Aid hinders economic growth and

Liberal View development since it maintains inefficient
government intervention and obstructs
dynamic market

Address vicious cycle of poverty; capital as scarce resource in development