1. Reduce Poverty in Developing CountriesTheultimate target of these Oda’s aid is to help the less economically developednations which in turn increases their economic growth, education and employmentopportunities. These organizations can raise the standard of living by helping people of these nations in form of money, medicine,education and employment areas.
2. It is beneficial to involved countries, thedonor and recipient.Theseactivities can be termed more than humanitarian activity as they benefiteconomically also. The diplomatic relations will be nurtured. It gives clearindication that developed countries are interested in developing countries intheir economic and strategic interest.The recipient countrywill be open to help the donor country / organization in times of need, be itin military or any other desired purposes.
3. Extending foreign aid will help othercountries be more independent. Due to financial and other necessary related assistances by ODA’s duringdisaster 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 inthe transferring the information about transnational problems like drugs andHIV. 5. Explore Natural Resources.Due to the help of ODA’s the poor countries might start to use their naturalresources to the full extent. This will help them economically also.
6. Promote Industrialization ODA’sincrease the process of in industrialization which will benefit in higheconomic manner. They will help them to create millions of job opportunitiesand train with new technology or management techniques. It might be notpossible to develop for the factories operating without foreigntechnology.
Disadvantagesof the Overseas Development Agencies (ODA)1. Corruption might Kill the HelpThe final well-deserved person/recipient of this ODA help might not getbenefitted in reality due to corrupt officials who misuse the fund for theirown private needs. In one way this can only raise the corruption levels insteadof decreasing them. 2. Favoring Selected Countries Sometimes the developedcountries and their respective ODA organizations might help only those whichare off their interest. The donor country sometimes takes illegal advantage ofthe recipient country in form of setting of military bases, which leave thepoor country with no choice.
3. Increase Debt of Poor NationsThere are at times whencountries opt for the help of ODA’s even when they are not wanted necessarilyand 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 mightnot be able to repay the amount during the time of expiry and this will destroythe economy.
4. Donor Nation’s People Outrage As discussed earlier oneof the biggest turn around for the ODA’s aid is the money of donor countrypeople being spent on others, while compromising on their own benefits. Thedonor country people concerns should addressed well before sanctioning any ODAaid to other nations.5. Benefit EmployersMostdevelopment will be beneficial to large MNC’s and their employees rather thanthe population which is in real need of it. Jobs might not get created aspromised by the organization or government.
6. More Expensive CommoditiesThere will be inflation in the country for few years asdevelopment is being taken place, which causes for the increase in prices ofgoods and commodities, which will worsen the situation of the poor ConclusionThough the help givenOverseas Development Agencies gives several benefits and shows the valuehumanity, there are loopholes in the system which are acting as wall forbenefits to reach the poor. Proper institutional structures should be developedto tackle problems like corruption and ensure that the needy get the benefit. The ODA’s should give aid in form of loans, which willput pressure on countries to repay it and help them to grown by themselves. Butforeign aid should be utilized wisely, effectively and legally, then only wecan remove poverty and hunger from the world.