US Aid in foreign Countries

The benefits of US Aid have been under severe scrutiny. Several analysts argue that a large portion of aid is wasted and only increases burden on US Budget and raises public concerns for utilization of funds unproductively. I would emphasize on positive outcomes and negativities associated with the US Aid in foreign countries. Foreign aid is considered by some receiving countries as linked to US strategic interests. Therefore, it becomes imperative to analyses the impact of US Aid in foreign countries in socio economic and socio political contexts.

Comparison of Foreign Direct Investments with Foreign Aid shows remarkable difference. Foreign Aid mostly responds as a political incentive while Foreign Direct Investment plays important role in LDI’s development in uplifting social standards and economic development. It is proved that FDI responds to more economic development, trade liberalization and better economic integration.

The real question is why DCs does the foreign aid LDCs? Development consultants ( SPO, 2013) remark foreign aid as the poor form of giving assistance in term of quality and quantity of Aid that have not been held to account. While humanitarian aid means poverty alleviation in the long term rather alleviating sufferings in the short term. There are numerous cases in which it has been reported that U.S Aid to foreign countries has been wasted due to corruption of state agencies.

During the last decade, US Aid has come with a price of its own; for example, taking developing countries in Latin America, Pakistan (War on terror), and Afghanistan.

The sometimes the economic price have been faced by developing countries in the form of overpriced goods and services or signing a trade deal with government from donor countries.

In this context aid does not go to poorest and needy to the full breadth as it should be reaching.

The Solidarity is absent in most of the cases, as the quote is very good, where aid flows, solidarity narrows and hatred against poor countries spread in diplomatic circles. That ultimately affects public opinion about beneficiary of donation from US Aid.

Large projects or massive grand strategies often fail to help the vulnerable because the wrong strategy. SO Far, there is very blame that US Aid has been unable to handle large projects in Pakistan due to low capacity of beneficiaries.

In my opinion, development aid must be linked to local resources and local trade agencies, and civil society organizations while no direct aid is to be provided to state agencies in LDCs where corruption chances are so high and people are suffering widely.

Second, US Aid must be based on social innovation model which inculcates economic and social inclusive society and must be based on solidarity model to balance global power equation.

The relationship between globalization, foreign aid and poverty alleviation is ambiguous while US Aid disburses donations. The mind set of donor’s agencies like US Aid must be to enhance locals and strengthen their communities to an extent where they would feel freedom.