They are still in the same situation, if not worse, then they were before they received aid. It is aimed at funding enormous projects like construction of water systems and also to achieve the United Nations Millennium Development Goals such as reducing poverty, child mortality, and improving education in Africa.
Finally, the driver of long-term economic growth is not more dams and factories and schools, the objects of most development assistance, but adoption of new technologies, broadly understood to include new ideas about how to organize work forces and production processes.
Institutions as the Key to Development If foreign aid is not the solution for global poverty, what is? This extremely controversial topic involves whether or not to support the policy of foreign aid to needy or sometimes not so needy countries.
This exhibits the ineffectiveness of foreign aid because it caused the recipient countries to consume some amount of goods and services from donor countries with overcharged prices.
The failure of foreign aid proves this statement to be false.
In the early phase of de-colonization, after the end of the World War II, newly independent countries were seeking to lead their people out of the poverty and backwardness bequeathed to them by the colonial era.