Foreign Aid

In the world today it is common for a successful and wealthy country to give foreign aid to struggling countries. The reasoning behind this is that foreign aid helps those countries to improve. The common example to back this up is the Marshall Plan—a post-World War II foreign aid program given by the U.S.A. to the Western European countries devastated by the war. After this plan was put into effect, most of the countries were better off.
money 2However, this doesn’t mean that it was the foreign aid that made the difference.  For one thing, any country that is devastated by war is going to improve once war is ended because it now has a chance to naturally recover. Secondly, in the WWII case, some countries were already recovering before the foreign aid was received. Also, Britain received twice as much as West Germany, but the latter was better off.

So, what is responsible for a countries development and improvement if not foreign aid? Some say that it is the free market and less or no government intervention. When there is no foreign aid, the need for a reform arises. However, if you have suffocating regulations, whether or not you have a chance to reform, you cannot due to a controlling government.

Therefore, in order to improve and develop a country, the introduction, or return to, the free market and a free economy is the solution, not foreign aid.

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