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Development aid is financial aid given by governments and other agencies to support the economic, environmental, social and political development in developing countries. It involves long term strategy to alleviate poverty.
♤ Foreign experts call India a ‘development paradox’. India is one of the largest economies with high growth rate. It spends substantial amount on the defense expenditure. Yet, it seeks development aid. It has created quite a debate at international level.
♤ Corruption: Foreign grants (often in dictatorial states in Africa) are siphoned by government
officials for private. It has also bred numerous non-performing NGOs.
♤ Identification of Projects: A very great deal of money has been wasted in the past because proposals have not been sufficiently investigated before aid was granted, and because priorities have not been correctly established.
♤ Influence recipient countries: Aid donors are often accused of trying to exercise unnecessary influence over recipient governments and the policies they undertake.
♤ Debt Serving: In the global economic slowdown, many countries have not been able to service their debt.