Economic aid, in the form of financial assistance, food,
technical know-how, and machinery, can have both advantages and
disadvantages for developing nations. On one hand, aid can help address
chronic shortages of food and medicine, increase productivity and build
industries, and improve the health and wellbeing of a nation's population.
However, aid can also create a sense of dependency, kill the initiative of
the receiving nation, and lead to indebtedness, resentment, and strained
relationships between donor and recipient nations.
One of the main advantages of economic aid is the potential
to alleviate chronic shortages of food, medicine, and dairy products. For
example, the United States has provided milk products, cotton seed oil, and
wheat to developing nations, enabling them to use their resources to build
their economy rather than simply producing food. Additionally, technical
know-how can help developing nations build industries, such as steel and
atomic reactors, and exchange of experts can help overhaul existing
industries and improve the economy.
Aid can also increase productivity by providing machinery to
developing nations, such as farm equipment and high-yielding seeds, to
increase production. However, one of the major disadvantages of economic aid
is that it can create dependency on the donor nation, killing the initiative
of the receiving nation. When aid is taken for granted, the receiving nation
may not set their house in order, and they may come to rely on the donor
nation rather than striving to become self-sufficient.
Furthermore, the donor nation may attach strings to the aid,
leading to long-term dependency on the donor. For example, when airplanes
were supplied to a country, the adequate spare parts were not supplied,
leaving the receiving nation dependent on the donor nation forever. In
addition, economic aid can lead to indebtedness, which may create a sense of
indebtedness and resentment, particularly if the receiving nation does not
support the donor nation's policies.
In conclusion, economic aid can be both a blessing and a
curse for developing nations. While it can alleviate chronic shortages of
food and medicine, increase productivity, and build industries, it can also
create dependency and kill the initiative of the receiving nation. To ensure
that aid is not taken for granted and that relationships between donor and
recipient nations are not lopsided, the best approach may be to share
technical know-how and expertise rather than simply providing financial
assistance. |