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 Aid and debt

Origins of aid

IMAGE: Black and white photograph of a woman handing out food to children in Belgium in 1946.

Aid given from one country to another to support their development has a relatively recent history. Following the Second World War, the USA provided assistance to Europe to help with the recovery of the countries affected by the war. In 1949, following the success of this assistance, President Truman proposed his 'Point Four Program' to offer assistance to poor countries in Africa, Asia, and Central and South America. Truman declared that it would be 'a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of undeveloped areas.' John F Kennedy gave new emphasis to the giving of aid when he came to power in 1961, proclaiming that the 1960s would be the 'Decade of Development' when many poorer countries would make the transition into self-sustaining growth. Aid has continued to be given to poor countries in various forms for the past fifty years.

However the act of giving aid from one country to another is not always as generous and kind as it may seem. Some donors may have a genuine concern for the development needs of the recipients, but many others seem to have other considerations, such as politics and trade. For example rich countries may offer assistance to poor countries which have strategic importance (e.g. they are located next to an enemy country of the donor), or because the West wants to keep a particular leader in power. A country may give aid but insist that the money be spent on imported goods from the donor country (known as 'tied aid'). Aid from the IMF usually comes with a range of conditions (e.g. the country must privatise its public services). The various problems attached to aid have led some people to question if it is doing any good at all.