1. Why is ‘aid’ not the answer to world development?

2. Definition of ‘Aid’ Act or result of helping; assistance Act or result of helping; assistance Aid is money, equipment, or services provided for people in need Aid is money, equipment, or services provided for people in need Food aid delivery by WFP to the people of Afghanistan

3. Foreign Aid The U.S. government has provided over $321 billion in assistance to Third World poverty The U.S. government has provided over $321 billion in assistance to Third World poverty Politically popular since it will increase trade and national security Politically popular since it will increase trade and national security Economic and social failure Economic and social failure Increasing government power, destroying economic encouragement, subsidizing misguided policies, promoting unprofitable enterprises, foreign aid increases Third World poverty. Increasing government power, destroying economic encouragement, subsidizing misguided policies, promoting unprofitable enterprises, foreign aid increases Third World poverty.

4. Human Assistance Aid designed to prevent immediate disaster – mainly takes the form of food aid. Aid designed to prevent immediate disaster – mainly takes the form of food aid. The United States has distributed over $34 billion worth of food to the Third World and currently provides around $1.2 bullion a year in food transfers. The United States has distributed over $34 billion worth of food to the Third World and currently provides around $1.2 bullion a year in food transfers. Food Aid has increased hunger abroad in the long run. Food Aid has increased hunger abroad in the long run.

5. Problem with ‘food aid’ Food aid is a free source of food for the people but this means the country will decrease the prices for local farmers, therefore resulting in less domestic production. Food aid is a free source of food for the people but this means the country will decrease the prices for local farmers, therefore resulting in less domestic production. Food aid also discourage food production since the country will be too dependent creating a never ending crisis that requires more aid to avoid famine. Food aid also discourage food production since the country will be too dependent creating a never ending crisis that requires more aid to avoid famine. Example: Due to the poverty in India the Americans have provided food aid (wheat) for India, but the result have caused thousands of Indian farmers to be bankrupted causing millions of Indians to die due to starvation. Example: Due to the poverty in India the Americans have provided food aid (wheat) for India, but the result have caused thousands of Indian farmers to be bankrupted causing millions of Indians to die due to starvation.

6. Development Aid Development aid tries to promote long-run growth by building large projects, giving money and balance of payments help, and funding a variety of research and planning efforts. Development aid tries to promote long-run growth by building large projects, giving money and balance of payments help, and funding a variety of research and planning efforts. Since 1946 the United States has given over $131 bullion in development assistance. Since 1946 the United States has given over $131 bullion in development assistance. Third World countries do not grow because they lack financial resources but also depends on personal, cultural, social and political factors. Third World countries do not grow because they lack financial resources but also depends on personal, cultural, social and political factors.

7. Conclusion Foreign aid fails as a development because it destroys the encouragement of the marketplace. Because it leads the Third World away from the free market, it actually increases Third World poverty. Foreign aid fails as a development because it destroys the encouragement of the marketplace. Because it leads the Third World away from the free market, it actually increases Third World poverty. It is therefore vital to find another way to development of the Third World country. (Fair Trade) It is therefore vital to find another way to development of the Third World country. (Fair Trade)