The Effects of War and Peace on Foreign Aid Foreign aid is essential and significant for economic growth in developing countries
The Effects of War and Peace on Foreign Aid
Foreign aid is essential and significant for economic growth in developing countries. Foreign aid it isn’t just about money. Foreign aid is anything one country gives or provides for the benefit of another country. That includes goods, food, technical support, money, military, governments and social economics. Foreign aid money can be donated for good services money is sometimes given straight to the foreign government, but the majority of it goes to the USAID. Foreign aid meets many different needs. Foreign assistance can be for positive gains and negative gains as well especially when it’s the government controlling the outcome of the funds. Somewhat or not they want peace or war can affect the distributions of foreign aid. Two-thirds of all the foreign assistance is funded and managed by the State Department or other agencies like USAID (U.S. Agency for International Development) they provide humanitarian assistance and political developing.
The effects of war can be quite vicious especially in countries that are already extremely poor. The reason that developing countries with natural resources suffer the most in these civil wars is due to the potential riches being gained. Combat is even more of a problem when it’s in a developing country or between a developing country. As of today, most of the wars and conflicts of the world are no longer between different countries but within them. According to the report, civil war combatants do not care about the costs of civil war because civil war affects them less severely than it affects civilians. Society during the civil war reroutes some of its resources from productive activities to violence. The results of this mean the nation loses two times. The Rerouted supplies are dropped to productive activity, analogous to the loss from the economist call rent-seeking.
India and China only have to worry about the immediate areas of defense zones and were not engaged in the Cold War run-up in the race between the US and the USSR, both nations was able to focus on regional defense and devote more of their GNP to increasing their economies, building out infrastructure, developing export markets and remaining independent and capable of staying on the sidelines, away from the fray. https://www.quora.com/What-are-the-impacts-of-the-Cold-War-on-India-and-China-Did-the-Cold-War-influence-India-and-China-How-and-Why India and China had non-aligned statuses during and throughout the Cold War between the Soviet Union, U.S and NATO and its allies, India escaped the economic cost that’s been associated with being aligned on one side of the other. Also, the same for China.
Leaders in China incorporated capitalism into their political system by having a mercantile system of commerce that favored the indigenous industries and manufacturing over imports, which eventually turned into a one-sided trade and provided massive foreign currency reserves.
India leaders used foreign aid to help raise their country out of its terrible slum and poverty so they can stand on its own two feet. Eventually, India became more stable than they were before foreign aid. They benefited from non-aligned status during the Cold War by playing one side against the other. Taking advantage of its position and its size of the market drawing on both sides of the USSR and the United States. For so many years India purchased its military equipment mainly from the Soviets, even until this day India still uses Russia as their primary supplier for aircrafts, missiles and other military systems not as much with the United States.
Both India and China benefited from the Cold War. While both China and India fought over the gaining of technology other parts of Asia and the rest of the world gained their technology from the United States and the USSR. India, on the other hand, didn’t receive as much success as China due to its structural impediments within its social, economic, financial and political sectors. Fueling and having wars seems to be more of a success with the foreign policy then peace. They can’t make a profit or benefit from peace.