Where Does Foreign Aid Go?

Foreign aid is the transfer of resources from one country to another to promote development, reduce poverty and improve living standards. It can be given as grants, loans or technical assistance. While foreign aid can have positive impacts, it can also be criticized for creating dependency and perpetuating corrupt practices. It requires careful monitoring and evaluation to ensure effectiveness.

Vocabulary:

• breakdown - (noun) a detailed list or analysis of something, often used to show the different parts or components

• economy - (noun) the system by which a country or region produces, distributes, and uses goods and services

• foreign aid - (noun) financial or other assistance given by one country to another country or organization to promote economic development, social welfare, or political stability

• gross national income - (noun) the total value of goods and services produced by a country, including income earned by citizens and businesses abroad, but excluding foreign investment and other external transactions

• givers - (noun) countries or organizations that donate or give something to others, particularly in terms of foreign aid

• receivers - (noun) countries or organizations that receive or benefit from something given by others, particularly in terms of foreign aid

• target - (noun) a specific goal or objective that is aimed for or desired, often used in the context of achieving certain levels of aid or development

• exceed - (verb) to go beyond or surpass a certain limit or expectation

• promote - (verb) to encourage or support the growth or development of something, often with the intention of achieving a specific goal or outcome

Source: The Economist