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Essay / Importance of foreign aid in developing countries
Foreign aid refers to economic, technical or military assistance given by one nation to another for the purposes of relief and rehabilitation, economic stabilization or mutual defense of the nation. Some experts say aid has expanded government bureaucracies, perpetuated bad government, enriched the elite in poor countries, or simply been wasted. Others argue that although aid has sometimes failed, it has supported poverty reduction and growth in some countries and prevented worse performance in others. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayInfrastructure: to build roads, bridges, institutions and sewer systems are built, giving people the opportunity to be mobile and have access to basic necessities such as electricity and running water. Improvements in agricultural technology: improvements to the agricultural business infrastructure of recipient countries. Education: Through the constructed classrooms, teachers receive training and children acquire their basic educational needs. Health: develop health services such as vaccinations, mosquito nets, drinking water, access to hygiene education and basic sanitation facilities. Humanitarian issues and natural disaster emergencies: Life-saving assistance is provided to those affected and possibly displaced by natural disasters, emergency shelters are built for those affected by violence, and counseling services are made available. National security: Recipient countries can fight terrorism with foreign aid because it reduces poverty, weak institutions and corruption, which can help strengthen good governance, transparency and the economy. Another reason why foreign aid is important is how it promotes a favorable diplomatic relationship between the donor and recipient. Impoverished nations that receive aid can eventually become independent and move toward basic democratic principles with the help of donor countries. There are hundreds of different foreign aid donors among them. One of the most well-known donors of foreign aid comes in the form of official development assistance (ODA). ODA provides foreign aid to poor countries in the form of grants and loans. One of the best-known and largest providers of foreign aid is the International Development Association (IDA), part of the World Bank. It has 173 shareholders who provide grants and loans to 77 countries around the world, of which 39 are located in Africa. The main objective of the IDA is to reduce inequality, increase economic growth and improve the living conditions of the population. The funds are disbursed directly to the education, water, sanitation, agriculture and infrastructure sectors. The IDA provides little or no interest on its grants and loans and allows a grace period of up to 10 years and also allows the recipient country to make debt repayments of up to 40 years. Since 1960, IDA has invested $312 billion in 112 poor countries. Over the past three years alone, an average of $19 billion has been awarded in grants and loans. Foreign aid really makes a difference for people living in poverty. It provides access to basic necessities and provides people with the essential conditions to live a peaceful and safe life..