Reduce Poverty in Developing Countries
ultimate target of these Oda’s aid is to help the less economically developed
nations which in turn increases their economic growth, education and employment
opportunities. These organizations can raise the standard of living &
equality by helping people of these nations in form of money, medicine,
education and employment areas.
2. It is beneficial to involved countries, the
donor and recipient.
activities can be termed more than humanitarian activity as they benefit
economically also. The diplomatic relations will be nurtured. It gives clear
indication that developed countries are interested in developing countries in
their economic and strategic interest.
The recipient country
will be open to help the donor country / organization in times of need, be it
in military or any other desired purposes.
3. Extending foreign aid will help other
countries be more independent.
Due to financial and other necessary related assistances by ODA’s during
disaster or war times, these countries will be able to develop their economies.
In future these countries will also start aid other nations in times of difficulty,
like Japan and China.
4. Cure Diseases / Drugs
Many ODA’s are helping in
the transferring the information about transnational problems like drugs and
5. Explore Natural Resources.
Due to the help of ODA’s the poor countries might start to use their natural
resources to the full extent. This will help them economically also.
6. Promote Industrialization
increase the process of in industrialization which will benefit in high
economic manner. They will help them to create millions of job opportunities
and train with new technology or management techniques. It might be not
possible to develop for the factories operating without foreign
of the Overseas Development Agencies (ODA)
1. Corruption might Kill the Help
The final well-deserved person/recipient of this ODA help might not get
benefitted in reality due to corrupt officials who misuse the fund for their
own private needs. In one way this can only raise the corruption levels instead
of decreasing them.
2. Favoring Selected Countries
Sometimes the developed
countries and their respective ODA organizations might help only those which
are off their interest. The donor country sometimes takes illegal advantage of
the recipient country in form of setting of military bases, which leave the
poor country with no choice.
3. Increase Debt of Poor Nations
There are at times when
countries opt for the help of ODA’s even when they are not wanted necessarily
and which will in long term hamper the growth of the economy and harm them.
Some nations do not utilize these funds for the right cause and at last might
not be able to repay the amount during the time of expiry and this will destroy
4. Donor Nation’s People Outrage
As discussed earlier one
of the biggest turn around for the ODA’s aid is the money of donor country
people being spent on others, while compromising on their own benefits. The
donor country people concerns should addressed well before sanctioning any ODA
aid to other nations.
5. Benefit Employers
development will be beneficial to large MNC’s and their employees rather than
the population which is in real need of it. Jobs might not get created as
promised by the organization or government.
More Expensive Commodities
There will be inflation in the country for few years as
development is being taken place, which causes for the increase in prices of
goods and commodities, which will worsen the situation of the poor
Though the help given
Overseas Development Agencies gives several benefits and shows the value
humanity, there are loopholes in the system which are acting as wall for
benefits to reach the poor. Proper institutional structures should be developed
to tackle problems like corruption and ensure that the needy get the benefit. The ODA’s should give aid in form of loans, which will
put pressure on countries to repay it and help them to grown by themselves. But
foreign aid should be utilized wisely, effectively and legally, then only we
can remove poverty and hunger from the world.