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Argumentative Essay: Problems Associated With Foreign Aid

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Argumentative Essay: Problems Associated With Foreign Aid
Problems Associated with Foreign Aid
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One year after the release of The End of Poverty, New York University economist William Easterly released a book entitled White Man's Burden which criticized Jeffrey Sachs' promotion of more aid to Africa. Easterly contended that "Sachs' anti-poverty prescriptions rest heavily on the kindness of some pretty dysfunctional regimes", arguing that large amounts of international aid are generally wasted or embezzled by corrupt governments. For example, he points to "studies in Guinea, Cameroon, Uganda and Tanzania, which estimated that 30 to 70 percent of government drugs disappeared into the black market rather than reaching the patients". Further, he also cited studies which contend that aid tends to have little effect on promoting economic growth even in countries with good governance.

This may be because foreign aid tends to promote a phenomenon nicknamed "Dutch Disease". According to a report by Raghuram Rajan of the
…show more content…

Furthermore, he points out that much aid is wasted on projects whose primary purpose is to glorify the aid organization instead of helping the impoverished citizens; additional aid is wasted on propping up dictators supportive of rich world interests or overthrowing communist regimes.

Other authors have backed up Easterly's position; in 2006, another book written by World Bank economist Robert Calderasi entitled The Trouble with Africa concludes that international aid should be cut to Africa, saying that "Contrary to conventional recommendations, direct foreign aid to most African countries should be (cut in half), not increased" since corrupt African governments often use the money


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