Question

 

1. What are some of the key arguments for increased aid funding to low-income countries?
2. What are some debates on what this aid should look like?

Answer 1

 

We all know the basic objectives of these aids are the reducing the poverty level in the poor countries and help the poor people to live a better and healthy life. The international organizations are trying to decreasing the poverty level globally. According to the economic principle, when economy grow or increasing economic growth it will contribute to reducing poverty. But we can see its not fully true. The best example of this problem are African countries and India also. You can see in the last two one decade the Indian economy grow fast but still million of Indian people are living in deep poverty and its its increase in this pandemic. According to the economists (who favor the international aids) these aids are helpful and give the positive expected result if these aids taken in use as a pro-poor public expenditure (PPE) as the sum of spending on health, education, and water and sanitation (as a share of GDP). If these aids get utilize on health, education and sanitation then it help in increasing HDI. An increasing HDI is a positive signal for the effectiveness of this these aids. HDI measure the economic development and the increasing HDI indicates the long and healthy life, knowledge, and a good standard of living. So, when these aids increase its increase HDI and increasing HDI indicate a economic development of a country. A economic development is a better measure than economic growth. When the people get educated, healthy then their productivity and efficiency increase that help in economic growth. But most important thing is how do we spend this money, How efficiently it is taken in use, how do we drive it. So according to these economic the foreign aids are beneficial for the poor economy and helpful in decreasing poverty level if it is taken in use strategically and honestly. The world should increase these aid that will help to the world in decreasing poverty level and increasing the standard of living of the people globally. You can see the example of India, Philippines how thess countries decrease the poverty level through these aids. Result can be more better if we use it strategically and honestly. The economist who are against of these aids say that its increase corruption, decrease domestic investment but its not true. Its not decrease domestic investment . If the people of poor country spend less on health and education (because of subsidy or thess aids) save more money and its helpful for the economy. You can see that the saving rate of some poor Asian countries are far better than rich countries. The saving rate of China and India are satisfactory and its helped in the economic growth of these countries. Corruption is another issue but it could be control and we can stop giving aid without this reason. We can not leave alone to the poor people. So, the foreign aids are very helpful and play an important role in decreasing poverty worldwide and we should keep it on and increase also.