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Disadvantages of International Aid

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The question of international aid to developing countries is one of the most controversial subjects in modern development literature. One simply needs to look at any local bookshop; news store or online publications and you are met with many large and often detailed volumes on the subject. International aid (or foreign aid) is a voluntary transfer of resources from one country to another, given at least partly with the objective of benefiting the recipient country. Aid is received from many different sources. It can reach recipients through bilateral or multilateral delivery systems. Bilateral refers to government to government transfers whereas Multilateral institutions, such as the International Monetary Fund, World Bank or UNICEF, pool aid from one or more sources and disperse it among many recipients.

Aid has been criticized by many social commentators, authors and economists, including Zambia’s very own Dambisa Moyo, as being, ineffective, retrogressive and ‘dead’. These criticisms usually stem from the conditionality that is tied to aid. A major proportion of aid from donor nations has strings attached, conditioning that a receiving nation spend on products and expertise originating only from the donor country. What’s more, The World Bank and the International Monetary Fund, as primary holders of developing countries' debt, attach structural adjustment conditionalities to loans which generally include the elimination of state subsidies and the privatization of state services, as was the case in Zambia during the Chiluba regime in the early to late 90s. Not only is aid given with many conditions attached to it, it often does not reach those who are intended to receive it. For example a report composed by the World Bank in 2006 stated that an estimated half of the funds donated towards health programs in sub-Saharan Africa did not reach the clinics and

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