ECONOMICS: IN THE CURRENT GLOBAL ECONOMIC CLIMATE, COUNTRIES WITH STRONG ECONOMIES SHOULD SUPPORT COUNTRIES EXPERIENCING FINANCIAL DIFFICULTIES. DISCUSS - Essay Example

Why Strong Economies Should Support Countries Weak Economies World has been reduced to a global village by the presence of technology. Globalization has made it a concern whatever happens in another country. Even amid globalization, the world is divided into developed and developing countries where developing countries are looming in debts thus leading to human conditions. Most countries in the Sub-Saharan Africa, Asia and Latin America are experiencing extreme poverty while Europe and most of the Western countries as well as the emerging economies such as China and India are doing very well economically.

This essay discusses the need for developed countries to financially support underdeveloped countries.Basically, the need for a country to have low public debt, high GDP, low level of unemployment and positive economic growth is integral and therefore action taken by developed countries as well as the policies made by the developing countries to achieve economic success remains critical. Aiding underdeveloped countries by the industrialized countries is a very noble character since human nature is protecting and helping others.

It is therefore worth understanding that helping poor countries is an internationally common practice whose main motive is based on moral obligation. Aiding underdeveloped nations act as an additional resource that empowers countries to develop themselves economically by financing their own projects. Humanitarian concern is the main reason behind helping poor countries. Funds or any aid offered to underdeveloped country by the industrialized nation may assist in carrying out very important projects and programs such as elimination or reduction of diseases and poverty.

This is because most poor countries are not able to raise funds that can help them in undertaking such kind of programs. Aiding is important because ‘It’s a necessity in eradicating third world poverty’ (Sharma & Sarwar 2012, n.p). Additionally, rich countries have an obligation to assist the poor countries because they (rich) exploited the underdeveloped countries during the colonial times. It is apparent that most countries such as Britain became rich through colonization and exploitation of Asian countries which eventually led to unequal distribution of resources.

Availability of cheap labor in the Asian and other colonized countries as well as slavery catapulted economic development of the developed countries. Also, for harmony and peaceful coexistence, industrialized nations should act responsibly by helping the poor countries. It should be noted that ‘it is a moral duty to help those less fortunate than you’ (Sharma & Sarwar 2012, n.p). Assistance by the rich countries may also be accompanied with technological transfer particularly when the aid is technical in nature and this may be of great help in boosting economic growth of the underdeveloped countries.

Moreover, the aid may come with training and education that may be of great use in promoting various infrastructural and human developments that are useful in propagating economic growth. Indeed ‘aid helps train teachers, buy textbooks for school’ (Sharma & Sarwar 2012, n.p). Issuing aids further helps in promoting the relationship between the developed and underdeveloped countries. By supporting countries experiencing financial difficulties, the strong economies tend to exercise equality in various sectors such as education, clean water and healthcare.

Supporting education and healthcare programs may boost literacy and health levels thus enhancing harmony in global development and reduces diseases and infections which may perhaps spread to the rich countries if proper treatment is not taken. Even for countries that do not need aid ‘at the end of the day it is a matter of life and death’ (Sharma & Sarwar 2012, n.p). Points against On the other hand, giving an aid may not be the best thing to do to underdeveloped countries because of several negative effects and intentions it has on the underdeveloped nations.

Underdeveloped countries ‘should set out medium-term plans to reduce aid dependency’ (Glennie 2011, n.p). In most cases, aids given are normally misused by corrupt governments and administrations. Financial aid is normally consumed or manipulated by few individuals considering themselves as privileged in the society. There are many instances where of corruption particularly in Africa because of weak institutions put in place. Additionally, most of the aids given by industrialized or developed countries are misdirected in projects or countries.

Giving aid is ‘often caused or compounded by the actions and decisions of rich countries themselves’ (Glennie 2011, n.p). Funds may be directed to projects which do not even need assistance and therefore sums up to misappropriation of funds by the donor countries. Many a times, funds may be used in building a facility such as dams that may not be applicable to the surrounding population. Moreover, assisting underdeveloped countries may encourage dependency which further boosts laziness. The poor countries should always be challenged to work hard towards developing their economies instead focusing on how to reduce public debt resulting funds given to them by rich nations making decision concerning projects to be undertaken should be left with the poor nations.

Overdependence on these funds may therefore be very risky and should be discouraged as much as possible. It is therefore deceptive that most underdeveloped countries get more harm than good because aids encourage overreliance on the rich nations instead of exercising self-reliance. This discourages innovativeness amongst the poor countries’ population to a higher extent. Underdeveloped nations should simply adopt policies that may be deemed useful and vital in promoting economic growth. Developed countries ‘concentrate not on achieving a target figure, but on how the money is spent’ (Moncrieff 2012, n.p). Less spending and high level of investment should be encouraged instead of waiting for funds.

In fact, even some of the rich countries have their own serious issues that need to be supported such as funding security, wars and even enhancing technological investment. In addition, aids normally have tied price on them which may eventually turn out to be very costly.it is obvious that ‘aid buys things donors want’ (Glennie 2011, n.p). The rich countries normally sink the poor nations into poverty because they always give conditions such as use of overpriced goods and services from the developed countries.

Funds may also be used in some projects which may not be useful and beneficial such as investing on weapons and perhaps engaging in unnecessary civil wars within the our countries. It is therefore obvious that helping the underdeveloped countries may not provide a lasting solution to underdevelopede countries. It even makes them languish in serious financial challenges that they were not before acquiring the aids such as higher public debt. Poor countries may be just encouraged and promoted by removing trade barriers and allowing free markets that can see them selling their products.

Removal or forgiving of debts may also serve well in assisting the underdeveloped countries but not issuing further aids that may not go well with them. Bibliographies Glennie, G 2011, ‘Giving Aid To Poor Countries Is Hardly A Great Act Of Generosity’, The Guardian, 14 June, . Moncrieff, C 2012, ‘International Aid Targets Just Mean Poor People In Rich Countries Giving To Rich People In Poor Countries’, Daily Mail, 29 March, . Sharma And Sarwar, J 2012, ‘For and Against: International Aid’, Live Magazine, 5 December, .