Essay

Goldin(2009) mentions that globalization is not inclusive and there is growing inequality and fragility, in which an event happening in one place quickly affects everything else. Such events include pandemics and financial crises. Technology has improved and is improving by huge leaps. Income inequality is a continuing problem, despite improvements in technology and travel, which is related to fragility.

In this essay, I would like to discuss about the phenomenon of aid-giving by developed countries to developing countries, and how I feel that this is not helpful. The phenomenon of aid-giving may actually be more beneficial for the developed countries than for the developing countries, due to the conditions imposed by the developed countries.

Developed countries have given aid to developing countries for a very long time. However, the developing countries appear to stagnate, which supports the overall view that the aid is not helpful to them. One reason is that the elite in the developing countries are corrupt, and channel aid meant for the poor to enable themselves to live comfortable lifestyles. Aid has been given in the form of food, money, medical services and supplies, building infrastructure etc.

One reason for the stagnation is that many people in developing countries do not value education, preferring their children to work in farms or in other low-skilled occupations rather than attend school, because school attendance may drain short-term family income and working contributes income. Therefore, children are often absent from school and many families pull their children out of school early, and this lack of education hinders the growth of the economies of developing countries.

A solution to this problem would be to provide aid in the form of school supplies and teacher training and salaries, with the developed countries providing the supplies, preferably produced locally to improve the local economy, and paying the teachers directly to minimize corruption.

Another reason for the stagnation is the tying of aid, in which the developed countries give aid on the condition that the developing countries buy goods and services from the developed countries, which benefits the economy of the developed countries by generating revenue for foreign companies but does not help the economy of the developing countries, generating further income inequality between developed and developing countries.

A possible solution to this problem is to provide aid in business and technical training, with developed countries mentoring developing ones, and remove aid-tying. This is already being done but  without business and technical know-how, the economies of developing countries will progress slowly.

In conclusion, the development of the economies of developing countries is a multifaceted one, and requires the cooperation of governments and people, in order to solve the problems plaguing the developing countries.