There are two main types of aid: humanitarian and development. Humanitarian Aid is a more immediate relief to living conditions, such as providing health care, food, water, clothes, ect. It helps people in developing economies to get the bare essentials they need to survive. Developmental aid is a longer term form of aid. This aid helps to improve infrastructure, train workers to be more efficient, or donate money to projects that may boost the economy. This aid helps to a provide growth in the long run.
Aid may be very beneficial in helping a developing economy grow. It helps provide health care so that people live longer, and trains them by providing an education so that they be better employed. Countries may also provide more updated technology and capital so that firms in the country can be more efficient and help boost and stimulate the economy.
However, Aid has more disadvantages than advantages. Often aid from other countries deters the country from improving systems internally. They therefore develop a dependence on the provided medicine, education, and money. if it stopped the country would not survive. It also can encourage corruption. Sometimes when money is poured into a country, the money will go to an elite group, while the people who need the money become even poorer, worsening the distribution of income and preventing growth. Sometimes funded projects can be unnecessary, and money could be spent better in other areas of development.. For example, the country may build a new school for a developing country, but the children are not getting enough food, therefore cannot perform or even go to school. Also, these projects and aid may in debt a developing country, hindering their growth in the long run.
