Global Political Economy: Theory And Practice Essay


Why we should increase foreign aid and not decrease?


As stated by, the basics of education support depends on certain educational requirements like teachers, classrooms and educational materials. The effectiveness of teacher training, supervision or the mentoring process creates a better condition in the overall educational system. This process would be better if the foreign aid contribute and involve in the school. Indonesia has been receiving foreign aid and has been important part of the government’s budget (Corbet 2017). Indonesia is the largest recipient of Australian aid and Australia is the fourth donor to Indonesia. It has been evident that Australian government provides around $ 356.9 million to Indonesia in 2017-18. As pointed out by Benedek et al. (2014), this creates an extensive framework of cooperation that actually spans around the political, economic and educational security of the country. Thus, foreign aid actually hurt people in the poor countries rather than helping them. For countries like Indonesia, the situation is extremely degrading and there is very less go for those countries to afford or fund their own education. In fact they completely rely on foreign aid only and if they are not able to get the foreign aids, at the right time they ultimately would have to suffer.

Reading, it has been found that by helping the people in the poor countries, the developed countries might be practicing the act of corruption. The idea of the developed countries to help the poor countries blossomed in the late 1960s when the humanitarian crises became evident in the world (Wolf 2015). The Americans showed their support towards the Nigerians. This way automatically they have created dominance over the people of Nigeria because they have been helped in their crisis situation. In fact, many economists believe that it is one of the key that the developed and the wealthier nations triggered in order to achieve growth. It is when the developed countries provide monetary help to the poor countries they also start to dominate the nation by the means of teaching them about the Western model (Lim et al. 2014). Thus, Western model is created even among the people of other nation. Supporting the fact that the developed and the wealthier countries should provide financial help, to the poor countries, it can be said that the poor countries do not have the basic amenities that would help them to reach their goals. Thus, it can be saved that foreign aids mandatory for providing a better future to the people of other countries.


Benedek, D., Crivelli, E., Gupta, S. and Muthoora, P., 2014. Foreign aid and revenue: Still a crowding-out effect?. FinanzArchiv: Public Finance Analysis, 70(1), pp.67-96.

Corbett, J., 2017. Australia's Foreign Aid Dilemma: Humanitarian aspirations confront democratic legitimacy. Routledge.

Lim, H., Heckman, S.J., Montalto, C.P. and Letkiewicz, J., 2014. Financial stress, self-efficacy, and financial help-seeking behavior of college students.

Wolf, C., 2015. Foreign aid: theory and practice in southern Asia. Princeton University Press.

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