Access to the foreign aid that is intended to help poverty reduction involves acceptance of economic policies that lead to greater inequality. Aid donors should stop pretending that their primary aim is poverty reduction. Discuss this proposition in relation to one or more aid dependent economies.
Foreign aid programmes have been criticized for profiting the donor country over the recipient country. While there are positive effects of aid programs, there exists other negativity to aid; this type of aid is always tied to a donor countries interests and stakes in the recipient country. Receiving aid may have some negative side effects on the economic and political development of a country. This work will look deeply into the activities of the UN, IMF and the World Bank in donations and fund raiser for the third world countries and the effectiveness of the funds. Also, mention will be made of the positive as well as negative effects of accompanying policies or terms backing the donations using Nigeria and The United States as a case study with little reference to some other developing countries.
2. Relevant terms Definitions
International Monetary Fund:
International Monetary Fund (IMF), international economic organization whose purpose is to promote international monetary cooperation to facilitate the expansion of international trade. The IMF operates as a United Nations specialized agency and is a permanent forum for consideration of issues of international payments, in which member nations are encouraged to maintain an orderly pattern of exchange rates and to avoid restrictive exchange practices. The IMF was established, along with the International Bank for Reconstruction and Development, or World Bank, at the UN Monetary and Financial Conference held in 1944 at Bretton Woods, New Hampshire. The IMF began operations in 1947. Membership is open to all independent nations and included 184 countries in 2004. Encarta, (2009). |
The World Bank:...