Foreign aid began as a system to assist other countries in need of financial help mainly after WWII (the U.S. is a big supporter of it), but foreign aid drastically failed its purpose. By the 1990s U.S. government organizations, the World Bank, and USAID openly admitted that foreign aid was not actually aiding the receiving countries. The Clinton administration task force said: “Despite decades of foreign assistance, most parts of Africa, and parts of Latin America, Asia, and the Middle East are economically worse off than they were 20 years ago.”
Where was the aid going? The aid was going to the governments of the countries where who knows where it went afterwards. The money most likely went to aid a dictatorship, to bribe political assets, or to make more corruption within the country.
Before France, Germany, and Italy began receiving foreign aid they had already began making economic recoveries after WWII. Countries receiving less foreign aid were substantially better off economically than countries receiving more foreign aid.
You see, when a country receives and accepts money by way of foreign aid a country is not facing reality. The country was having money thrown at it and therefore it didn’t have to find ways to support itself. It is kind of like a young adult still living under his parents’ roof and protection. The young person has his basic living and survival needs met so why should he need to go out and get work? Well, he should go out and get work because eventually one day his parents will die and there will be no one to take care of him and when that day comes harsh reality will hit him big time. He will have no idea what he is supposed to do because he hasn’t had to do anything for decades. The man will have to rapidly find a way to support himself, emotionally, physically, and economically, and his parents won’t be there to guide him through the learning process. Do you get the picture now?
In conclusion, foreign aid does not aid countries. It handicaps countries.
Photo Credit: Me. Above is a teeny-tiny cabin my mother and I stayed in while traveling out of Ecuador. It was so extremely cramped in there….