 Foreign aid:  Tied to political considerations.  It serves more as a subsidy for the rich countries' exports than as a development tool within the poor country.  Multilateral aid from international organizations like the World Bank often require structural changes in the Third World Country's economy which create hardships among the poorest segment of that country's population. The budget must be balanced; social expenditures must be reduced; subsidized food and housing prices must be allowed to rise according to market conditions. The economic policies imposed by the World Bank work to the detriment of the poorest segment of the societies on which they are imposed. Neo - COLONIALISM

 Third World Debt.  Borrowing is another method of financing economic development.  Much of the Third World has borrowed huge amounts of money: much of it has been squandered on military purchases, siphoned off by corrupt officials, and invested in massive projects that ultimately failed. The interest on this debt in now choking further development. Many Third World countries spend much of their hard earned foreign exchange on debt payments. Unless there is massive debt relief, the future development of many Third World countries looks bleak.

CYCLE OF POVERTY

The 2013 Human Development Report  "THE RISE OF THE SOUTH: HUMAN PROGRESS IN A DIVERSE WORLD”  examines the profound shift in global dynamics driven by the fast-rising new powers of the developing world and its long-term implications for human development. China has already overtaken Japan as the worlds second biggest economy while lifting hundreds of millions of its people out of poverty.  India is reshaping its future with new entrepreneurial creativity and social policy innovation. Brazil is lifting its living standards through expanding international relationships and antipoverty programs that are emulated worldwide.  But the "Rise of the South" analyzed in the Report is a much larger phenomenon: Turkey, Mexico, Thailand, South Africa, Indonesia and many other developing nations are also becoming leading actors on the world stage.