Foreign aid


After world war 2, the continent of Europe was in total ruins. The economies of most countries declined as a result of the devastating effects of world war 2, two countries emerged as super powers, United state of America and soviet union(USSR). This countries has the strongest military capabilities. However, there was mutual suspicion and distrust between the two super powers.  This led to the proliferation of weapons of mass destruction (WMD). The first and second atomic bomb was in august 6 and august 9 1945 in japan (hiroshima and nagasaki).  Soviet union (Union of Soviet Socialist Republics) developed same thing in 1949. And in 1952, UK also developed its own. And by 1961, france also developed theirs.

      In 1947, Americans pump in billions of dollars into western europeans countries in other to resuscitate their economies and to prevent communism from spreading. This was done under the marshall plan on 1947. Similarly, the Soviet Union penetrated Central Europe and Eastern Europe with communism. In 1949, America established NATO (North Atlantic Treaty organization) in other to protect  Americas Allies across the Atlantic. In 1955, Soviet union developed Warsaw pact (in poland) to protect countries practicing communism. It must be noted that the global system became bi-polar as America championed capitalism and liberal democracy while USSR championed communism and one party system. The frictions between the two super powers (soviet union and America) led to the division of Germany which makes Germany become east and west Germany. East Germany was relating with Soviet Union and other communism’s countries while west Germany was relating with USA and other capitalist countries.

        Between 1950 and 1953, there was Korea war that led to the division of Korea (north and south Korea). We also have the Cuban missile crises of 1962. We also have the Vietnam war between 1954-1975. Also the Iran and Iraq war that happen in 1980s. By the 1980s, soviet union began to experience dwindling fortunes. For instance, USSR technology became obsolete or outdated. 2. Bureaucratic bottleneck 3. Widespread corruption 4. Clamor for political change in communist countries. 5. Weakened communist countries generally. (No freedom of speech and movement so they needed a change cos it was dull). In 1989, the Berlin war that separated east and west Germany was broken. On December 26th 1991, the Russian premier or last premier of Soviet Union, Mikhail Gobachev announced the desolution of soviet union or USSR led to the creation of fifteen independent nation (russian, ukraine, estonia ETC).

         Ugoslavia was not left out for it broke into 6 countries like barcelona, e.t.c. After the collapse of Soviet Union, America became the sole super power with the greatest military might and the most sophisticated economy in the world. In recent times, the emergence of European unions, The rising power of china, the rise of Asia Tiger countries, Newly industrialized countries (brazil, turkey, qatar, kuwait) and the rising profile of Russia (Moscow is the capital of Russia and also the capital of soviet nation). As moved the world from unipolar to multipolar.


      Foreign aid according to Ajayi (2000) is a form of assistance by a government or financial institutions to other needy countries which could be in cash or in kind.

    In our contemporary world, foreign aid is used as an instrument of foreign policy. Usually, developed countries or rich countries or wealthy countries use foreign aid as a tool in maintaining bilateral or multilateral relations in the international system.


  1. Economic aid or economic assistance

        a. Investment in the economy of the needy country. (China for an example has been investing heavily in the economy of many African countries, sectors; such as telecommunications, railways, airports, road construction, agriculture, oil and gas industries and ICT

      B. Foreign loans

      C. Infrastructural development

  1. Military assistance: foreign aid can come on the cause of military assistance such as (a) Supply of military hardware at reduced costs (b) Signing of military agreement at bilateral or multilateral level. (C) supply of military technical assistance and advice. (D) supply of military assistance in terms of deploying troops to the place of crisis.

It must be noted that foreign aid can be bilateral, multilateral and it can also be private( international commercial banks) and multinational corporations. Poor countries in Africans and Asia receive foreign aid from institutions such as IMF and world bank, European Union, (EU), United nations (UN). The aid provided by this institutions are usually channelled towards developmental project.


Contending issues with foreign aid

  1. Foreign aid is considered to be a tool for neocolonialism or imperialism. It is seen as a strategy by the north in making the south dependent on them. For instance, powerful countries such as United states, United Kingdom and France used foreign aid to promote their languages and cultural values
  2. It has been observed that most of the foreign aid given to third world countries has not been able to transform into economic growth and development.
  3. Other factor that have hindered foreign aid in developing countries or third world or developing countries includes (A) corruption, (B) political instability (C) civil wars (D) bad leadership

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