外国・途上国支援について英語で討論する – Pros and Cons of Foreign aid


外国援助の定義 – Definition of Foreign Aid

Foreign aid refers to the international movement of money, services, or goods from governments or international institutions for the benefit of the receiving country or its citizens. Foreign aid can be fiscal, military, or humanitarian and is considered one of the significant sources of foreign exchange.


日本の外国援助政策 – Japan’s Foreign Aid Policy

Japan’s foreign aid strategy is unique. Bilateral aid constitutes 77% of Japan’s ODA, (Official Development Assistance) , meaning the Japanese government donates directly to the recipient country without a third-party organization.


外国援助の長所 – Pros of Foreign Aid

Save Lives

At the onset, foreign aid is there to save lives particularly during calamities and disasters, like in the case of natural disasters.



Rebuild Livelihoods

Foreign aid helps rebuild lives by providing livelihoods and housing right after a disaster so that victims can start over.



Provide Medicines

Medical missions are there to offer free medical and healthcare products and services where they are needed the most.



Aid Agriculture

Foreign support directed towards agriculture helps farmers and increase food production, which leads to better quality of life and higher quantity of food.



Encourage Development

Industrial development projects supported by foreign aid create more jobs, improve infrastructure and overall development of the local community.



Tap Natural Resources

Some less developed countries do not have the ability to maximize their otherwise rich natural resources, but with foreign support, this is possible.



Promote Sanitation

Less privileged communities benefit from foreign aid aimed at providing clean water and sanitation facilities, which reduces risk of contracting infections and diseases.



外国援助の短所 – Cons of Foreign Aid

Foreign aid can increase local prices.

When foreign aid is offered at any left, the goal is to help that nation create their own resource chain that can be used to create the essentials of life: food, water, clothing, and shelter. Most markets operate on the basis of supply and demand. If you give people more money to spend, then you give them more access to resources. That lessens the local supply, which drives up prices.



Foreign aid benefits those who operate on an economy of scale.

When governments issue a contract for foreign aid provision, they are wanting to work with companies that can provide the most value for the investment offered to someone else. That means small providers can struggle to stay competitive for this domestic economic gain. Most of the work will go to the biggest companies that can provide the cheapest work.



Foreign aid is sometimes offered as a political tool.

It is very easy for foreign aid offers to become political tools. Countries can withdraw their resources as a way to create changes that they want to see in the government. This impact can create the effect of a coup without ever setting foot in the country.



Foreign aid can be used as a method of global favoritism.

As an example, although the United States offers foreign aid to over 180 different countries each year, there are only five nations that receive over $1 billion in direct aid each year. That figure is for cash grants, gifts, or loans that are handed out each year.



Foreign aid is easily wasted, especially when it is not wanted.

By 1996, the United Nations was forced to make the declaration that 43 out of the 70 countries were in a worse financial position than they were before they received their first gift.



Foreign aid does not create more peace in the world.

Many countries remain under the regime of the country who provided foreign aid or under military occupation.



Foreign aid does not offer a guaranteed benefit.

There is not usually a system of accountability in place that allows officials to follow-up on where the money goes or how it is used for the intended or designated purpose. For example, food or medical supplies aid may not reach a specific population because of conflict within a country. The aid may be diverted elsewhere. This is often the case in developing countries.



Foreign aid can cause special interests to get involved with foreign governments.

Long-term foreign aid typically reduces the effectiveness of governing at the local level for the recipient. One of the primary reasons for this disadvantage is the fact that there are contractors and special interests involved in the process when non-money aid is offered to a foreign government.



Foreign aid reduces or eliminates market pricing.

The cheaper, subsidized goods that the government must purchase to receive the aid makes it challenging for local producers to compete with that pricing. That leaves domestic companies with two choices: lower their prices to match or go out of business.



Foreign aid doesn’t create wealth.

The purpose of foreign aid is to provide an option for survival. People and governments can experience a positive economic impact when its presence is available in society. However, it will not usually create a higher rate of savings or investment in the general population. There are even times when this resource creates lower levels of wealth because households focus on spending or see their currency devalued because of the artificial infusion of capital.