Foreign aid, traces its origin back to the19th century, has greatly contributed to supporting lower income countries, countries hit by natural disasters, wars, and those which get colonised. In fact, foreign aid has greatly contributed to elevating small income countries with lower economic growth, but it has also brought significant effects to countries which were affected by wars and colonisation . As a result, these countries are still dependent on foreign aid and loans, which has been trapping them for decades.

When we look to advantages of foreign aid, we think of it as a major support for survival of a country. Foreign aid helps to achieve economic stability and growth; it also strengthens external and internal security, not only in times of war but also during climate-related disasters and economic imbalance. For instance, Europe’s helped to build post-war societies after World War II, which worked as a great opportunity for societies hit by ravages of war.

According to United Nations Sustainable Development Goal, aid and financial cooperation are vital tools for building economic growth and reducing poverty. Aid works as a pillar for countries with economic deficits and balance crisis. Historically, all those countries which have experienced wars and colonization rushed to the powerful countries to gain shelter by drawing loans from the donor governments.........

© Pakistan Observer