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Conflict Studies / nota bene
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Oyedele, O., Yao Nikez, A., Reuel, E. (2025). Problems and Prospects of Foreign Aid in Third World Countries. Conflict Studies / nota bene, 1, 29–45. https://doi.org/10.7256/2454-0617.2025.1.72521
Problems and Prospects of Foreign Aid in Third World Countries
DOI: 10.7256/2454-0617.2025.1.72521EDN: HDSOWFReceived: 30-11-2024Published: 26-02-2025Abstract: This paper examines the effectiveness of foreign aid in addressing the challenges associated with humanitarian crisis in third world countries. Guided by the dependency theory, the auhtors adopted the qualitative research method and relied on data drawn largely from secondary sources. Data were descriptively analysed. The study shows that although foreign aid is important, there is a great need to build local capacities that will run a long time even after aid has stopped. Aid works best when it is well-organized, tailored to the needs of the area and gives local organizations and people more control of the implementation process. Additionally, reducing humanitarian assistance may have a significant impact on third-world nations and may exacerbate instability in already fragile areas. This emphasizes how crucial it is to design a more sophisticated plan that places an emphasis on community involvement and local capacity building in order to successfully incorporate foreign aid into the framework of humanitarian emergencies in developing countries. The research highlights the limitations of aid in advancing sustainable development and emphasized the importance of a more sophisticated strategy with local capacity building and community engagement for properly situating foreign aids in the context of humanitarian predicaments in the third world states. Ultimately, the efficacy of foreign aid hinges on a comprehensive strategy that not only addresses immediate needs but also lays the groundwork for long-term resilience and self-sufficiency in aid-receiving countries. Keywords: Foreign Aid, Humanitarian Crises, Third World Countries, Capacity Building, Community Engagement, aid, structural problems, instability, Crises, official development assistanceThis article is automatically translated. You can find original text of the article here. introduction Foreign aid is the most important tool used by developed countries to assist third world countries in improving the well-being of the population, as well as in promoting institutional and economic growth [1]. In the broadest sense, aid is the transfer of all resources from donors to recipients, regardless of the recipient's purpose, status, or needs. Thus, assistance can be provided to recipients who are neither poor nor needy, nor for political, military or strategic purposes [2]. Foreign aid is also known as the international voluntary transfer of resources (capital, goods, or services) from one country or international organization (donor) to another country (recipient). Sometimes this transfer is aimed at helping the people of a third world country through grants or loans. The United Nations sets a target for foreign aid of 0.7% of the gross national product of the donor country [3]. Foreign aid was usually provided in the form of "official development assistance" (ODA), which consists of grants and concessional loans to third world countries through bilateral organizations such as USAID, OPIC, USTDA, and MCC, or multilateral organizations such as the World Bank, International Monetary Fund, regional development banks, etc. In 1961 The Development Assistance Committee (DAC) was founded in 2006 as a special forum for third world countries, and it consists of donor governments and international organizations such as the United Nations and the World Bank, which make up 29 of the 34 OECD members. The United Nations Development Program, the World Bank and the IMF are among the observers who have joined the committee and participate in its work, but do not make decisions [4]. Humanitarian assistance is a necessary response that aims to preserve human dignity, prevent suffering, save lives, and includes disaster prevention, food, water, shelter, sanitation, health care, and other basic necessities to help victims return to their normal lives during a crisis. Assistance is also provided with intentions for rehabilitation, reconstruction, and transition, and the safety, well-being, and dignity of citizens are promoted. Humanitarian aid covers assistance to refugees in third world countries, but not in donor countries, and it does not include operations related to force protection. As a percentage of total ODA, humanitarian aid is extremely low. Between 1995 and 2013, it ranged from just over 4% to 9% of total ODA. This is interesting because compared to other forms of aid, humanitarian aid, especially disaster and conflict relief, is undoubtedly the type of foreign aid that the public remembers the most and that attracts the most media attention [5]. However, this article attempts to explore critical issues and perspectives of foreign aid and humanitarian crises in third world countries.
PROBLEM STATEMENT Despite the widespread attention given to humanitarian aid in the media, especially during crises and natural disasters, the effectiveness of such aid in third world countries remains a matter of debate. Although the main purpose of humanitarian assistance is to mitigate the consequences of emergencies and disasters, many obstacles have arisen that cast doubt on its effectiveness. For example, in regions such as sub-Saharan Africa, where drought and famine are common, aid distribution can be hampered by logistical problems and political instability. The purpose of this article is to explore in more depth the complexities associated with foreign aid and its role in addressing humanitarian crises in third world countries. By studying specific country examples, we can better understand the nuances of aid delivery and its impact on local communities. In addition, exploring the concept of "aid fatigue," where donor countries become less inclined to contribute due to perceived lack of progress or mismanagement of funds, is crucial to assessing the sustainability of ongoing aid efforts.
METHODOLOGY This article uses a qualitative research methodology, primarily using data from secondary sources to study critical issues and future prospects for humanitarian crises and foreign aid in third world countries. The article uses case studies of humanitarian crises in South Sudan, Yemen, Haiti and Myanmar, as well as institutional and historical analysis of aid to identify the history of specific institutions providing foreign aid to recipient countries. Dependency theory is used as a conceptual framework and helps to identify and also describe the problems of poverty reproduction in third world countries. Academic publications, along with official documents and publications from various organizations such as the World Bank, OECD, WHO, and IMF, are part of the sources used in this article. The article aims to highlight the inadequacy of assistance in promoting sustainable development by combining these diverse sources. It also assesses the importance of a more sophisticated approach involving community engagement and building local capacity to appropriately accommodate foreign aid in humanitarian crises in third world countries.
THE THEORETICAL BASIS As a critical reaction to modernization theory and the desire for a deeper understanding of the possible causes of Latin America's underdevelopment, dependency theory first appeared in the social sciences in the 1950s and 1960s. According to dependency theory, the dependence of less developed countries (LDCs) on more developed countries (RCC) in terms of economic resources and technology hinders their ability to achieve economic progress. This economic theory discusses how the developed countries of the Global North have historically influenced the economies and political systems of the undeveloped countries of the Global South, leading to poverty and marginalization of their inhabitants [6]. The main idea of dependency theory is that the underdevelopment of third world countries is associated with the transfer of resources and wealth from poor areas to rich developed societies, which supports the third world economy at the base of the pyramid and constantly supports the West in a state of wealth. Dependency theory argues that as poor states assimilate into an unbalanced global system, rich states remain rich and poor states remain poor [7]. Dependency theory emphasizes that aid often fails to address the root causes of crises and poverty, including unfair trade links, resource exploitation, and the historical legacy of colonialism. In addition, dependency theory examines the power dynamics that exist between donors and recipients, emphasizing the ways in which humanitarian aid can maintain and strengthen unequal relationships, and advocates exploring the underlying causes of violence, poverty, and displacement, rather than just treating symptoms with humanitarian aid[8]. Food insecurity and other conflicts particularly affect countries with limited resources, many of which depend on foreign aid to address the escalating situation [9]. Most people in South Sudan live in poverty and experience severe food shortages as a result of the country's prolonged violent conflict and the effects of climate change, which has led to widespread dependence on humanitarian food supplies [10]. This leads us to the white savior complex, where people from the Global North see themselves as the Messiah of the Global South. The idea of a "White Savior" has existed for many centuries, arising from the belief of many white Westerners that they were born with knowledge, creativity, and the ability to solve problems of people all over the world [11]. Then the white savior mainly influenced the population of third world countries, especially people of African descent. This view arose from colonialism, which gave rise to the widespread view that the Global South is less developed than the Global North [12]. In the USA, as well as in other countries, the white savior is still common. According to Smith, the white savior often focuses on offering people personalized, immediate solutions, especially in times of humanitarian need. These quick fixes are necessary because they solve pressing problems during emergencies. However, the white savior does not take into account anything other than these urgent needs. Consequently, the white savior is unable to meet the long-term needs of the affected communities [13]. "Volunteerists" participate in humanitarian endeavors abroad, often out of personal interests, without thinking about all the consequences of their actions, thereby endorsing the neo-colonialist system. Although the term "volunteerism" is often used to describe short-term employment or missionary endeavors, development and humanitarian aid also have similar problems with the motives and results of their work. By their very nature, they support the narrative of a white savior in a complex state, as they depend on the paternalistic goodwill of the Global North towards the Global South[14].
discussion The Human Coalition (2018) defines a humanitarian crisis as an event or series of events that pose a critical threat to the health, safety, or well-being of a community or other large group of people, usually over a large area [15]. They can be divided into two categories: anthropogenic hazards (wars, gunfire, major traffic accidents, pollution, industrial accidents) and natural disasters (hurricanes, tornadoes, floods, volcanoes, forest fires, tsunamis, earthquakes, health problems, etc.) [16]. The international community plays a significant role in responding to humanitarian crises, with intergovernmental organizations such as the United Nations, the European Union, and other regional bodies coordinating relief efforts and providing platforms for diplomacy and conflict resolution.
South Sudan: The conflict in South Sudan has led to a severe humanitarian crisis, as a result of which more than two million people have become internally displaced and two million more have become refugees. The ongoing civil war, exacerbated by the severe economic crisis, has led to widespread malnutrition, cholera outbreaks, and famine in some areas [17]. According to the European Commission [18], 72% of South Sudan's population, or 9 million people, are in need of humanitarian assistance in 2024, and 8-9 million people are estimated to require emergency food assistance between July and September 2024, with thousands of them likely to live in conditions where close to starvation. There are more than 1.65 million malnourished children there, and their number is increasing daily. With 300,000 refugees already in the country, the Sudanese conflict is causing an unprecedented flow of returns and arrivals (768,000 as of July 25, 2024).
Figure 1: South Sudan Humanitarian Response Plan for 2024 (author's table with data obtained from: https://humanitarianaction.info/plan/1157 )[19]
South Sudan's humanitarian assistance is facing serious obstacles that limit its effectiveness and scale. Access restrictions are one of the main problems, as the constant fighting and looting of humanitarian supplies make it extremely difficult to provide the necessary assistance to those in need. Humanitarian organizations find it difficult to work in this unstable environment, which often leads to delays and reduced aid distribution. In addition, there is serious concern about the insecurity faced by humanitarian workers. With numerous reported murders and kidnappings, South Sudan is among the countries considered the most dangerous for humanitarian workers. In addition to the fact that this dangerous situation poses a risk to the lives of humanitarian workers, it deters organizations from sending staff to the area, which further reduces the amount of support that can be provided to affected communities [20]. Figure 2: Financing of the largest recipient countries of international humanitarian aid, their leading donors and types of recipient organizations, 2013-2022 Source: https://devinit.org/data/international-humanitarian-assistance-donors-channels-and-recipients/?nav=header
YEMEN The humanitarian crisis in Yemen is considered one of the worst man-made disasters in history, with two thirds of the population in need of assistance. The crisis is fueled by a protracted civil war, widespread famine, and devastating cholera outbreaks. The conflict began in 2015, when the Houthi rebel groups captured Sanaa, and the coalition's naval blockade of key ports restricted imports, leading to a food crisis affecting more than 20 million people [21]. The airstrikes have destroyed water and sanitation infrastructure, leading to one of the worst cholera outbreaks in history. The crisis underscores the urgent need for concerted efforts to address the humanitarian needs of the Yemeni people and find a solution to the ongoing conflict [22].
Figure 3: Yemen Humanitarian Response Plan for 2024 (author's table with data obtained from the website http://humanitarianaction.info/plan/1193 )[23]
With constant violence and administrative obstacles, humanitarian organizations working in Yemen face serious logistical and ethical challenges in their relief efforts. The environment has become dangerous due to attacks on humanitarian workers and infrastructure, which puts people working in humanitarian efforts at greater risk, and these organizations often face obstacles created by warring parties, making it difficult to access affected communities as they cross a difficult political environment [24]. In addition, the fighting has drastically reduced the resources available for humanitarian assistance, and aid agencies are often forced to prioritize short-term, life-saving operations over long-term rehabilitation efforts, which can hinder efforts to achieve sustainable development and build peace. The destruction of infrastructure presents long-term difficulties for reconstruction and the restoration of vital services after the end of hostilities, in addition to undermining ongoing relief efforts [25].
Figure 4: Financing of the largest recipient countries of international humanitarian aid, their leading donors and types of recipient organizations, 2013-2022 Source: https://devinit.org/data/international-humanitarian-assistance-donors-channels-and-recipients/?nav=header
Haiti Haiti, the poorest country in the Western Hemisphere, is facing numerous humanitarian crises, primarily caused by natural disasters, socio-economic factors and environmental degradation. The country is particularly vulnerable to earthquakes, hurricanes and floods due to its geographical location and vulnerable infrastructure [26]. The devastating earthquake of 2010 and subsequent hurricanes highlighted the fragility of Haiti's built environment and the urgent need for sustainable infrastructure. In addition to natural disasters, chronic poverty and low socio-economic indicators play a significant role in exacerbating humanitarian crises in Haiti. Since a significant portion of the population lives on less than $2 a day, access to basic services such as healthcare, education, and clean water is severely limited. This socio-economic instability not only hinders reconstruction efforts, but also makes the population ill-prepared to deal with the consequences of natural disasters when they occur [27]. In addition, environmental degradation has exacerbated the problems facing Haiti. Severe deforestation and soil erosion, often caused by unsustainable farming practices and urbanization, have reduced the earth's ability to absorb precipitation, leading to increased flooding and landslides. The interaction of these factors creates a cycle of vulnerability, which makes it crucial for local and international stakeholders to address the root causes of humanitarian crises in Haiti in order to promote long-term sustainability and recovery [28]. One of the main effective aspects of aid in Haiti is its ability to quickly mobilize resources in response to crises. For example, with a population of just under 10 million, Haiti received about $6 billion in official aid after the 2010 earthquake, and together with government aid, private donations to NGOs totaled an estimated $3 billion. Of this amount, the US government alone has allocated about $3 billion for humanitarian aid and reconstruction, and has already spent more than $2 billion [29]. This influx of resources has demonstrated the ability of the global community to respond to humanitarian needs and has provided significant support to thousands of Haitians in difficult circumstances. However, despite these immediate benefits, the long-term effectiveness of such assistance has been called into question due to systemic problems in the delivery of assistance.
Figure 5: Humanitarian Response Plan for Haiti 2024 (author's table with data obtained from https://humanitarianaction.info/plan/1178 ) [30]
The problems with aid in Haiti are multifaceted and deeply rooted in the country's postcolonial legacy, and one significant problem is the unfair distribution of aid, which often favors urban areas, especially Port-au-Prince, while ignoring rural communities. This centralization of aid exacerbates existing inequalities and increases the marginalization of rural populations, who are often left without adequate support. In addition, there is a phenomenon of "donor fatigue", when communities perceive aid as ineffective or mismanaged, which eventually leads to a decrease in international support. The lack of accountability and transparency in aid distribution further undermines trust between local communities and aid organizations. Moreover, the intersection of aid and local politics presents another significant challenge. In Haiti, politicians are known for manipulating aid for electoral gain, as was seen during the response to Hurricane Matthew in 2016 [31], and such strategic use of aid can undermine its effectiveness, as resources may be allocated based on political considerations rather than actual humanitarian needs. The involvement of numerous non-governmental organizations (NGOs) often leads to a fragmented approach to assistance, where there is a lack of coordination, and efforts may inadvertently strengthen existing power dynamics rather than empower local communities. In conclusion, while humanitarian aid in Haiti has the potential to provide critical support during a crisis, its effectiveness is often questioned due to problems of unfair distribution, political manipulation, and lack of accountability. To enhance the impact of relief methods, a more decentralized and inclusive approach is needed that prioritizes the needs of all affected communities, especially in rural areas. By addressing these issues, the international community can work to create a more effective and sustainable aid structure that will truly benefit the people of Haiti [32].
Figure 6: Haiti: Humanitarian aid overview, situation report – August 2023 – Haiti 2023 Received from https://reliefweb.int/report/myanmar/unicef-myanmar-humanitarian-situation-report-no-6-mid-year-01-january -June 30, 2024[33].
Myanmar Myanmar has a complicated history characterized by a series of humanitarian crises, primarily caused by ethnic conflicts, political instability, and systemic discrimination. The Rohingya crisis, which escalated dramatically in 2012, is one of the most significant humanitarian emergencies in recent history. The Rohingya, a Muslim minority, faced severe persecution, leading to widespread violence and the displacement of over 700,000 people to neighboring Bangladesh[34]. This situation has been exacerbated by the Myanmar Government's refusal to recognize the Rohingya as citizens, making them stateless and subject to discrimination and violence. In addition to the Rohingya crisis, other regions of Myanmar, such as Kachin and northern Shan states, have also faced long-term humanitarian challenges. Armed conflicts between Myanmar's military and various ethnic armed groups have resulted in significant civilian casualties, displacement, and lack of access to basic services, including health care. The ongoing violence, combined with the historical backwardness and marginalization of ethnic minorities, has created a horrific humanitarian situation in which millions of people need help.
Figure 7: Myanmar's Humanitarian Response Plan for 2024 (author's table with data obtained from: https://humanitarianaction.info/plan/1160 ) [34]
Humanitarian aid in Myanmar has had both successes and challenges. On the positive side, various international organizations, including the UN and NGOs, have provided basic services such as food, healthcare and education to the displaced population, especially in refugee camps in Bangladesh, improving the living conditions of many. In addition, local NGOs have played a crucial role in understanding the needs of the community and delivering aid effectively [35]. However, challenges remain, including bureaucratic difficulties, restrictions imposed by the Government of Myanmar, and ongoing violence that makes access to affected areas difficult. High staff turnover among humanitarian workers and difficulties in communicating with authorities further complicate the delivery of aid, limiting the overall effectiveness of humanitarian efforts [35]. Figure 8: UNICEF Humanitarian Situation Report in Myanmar No. 6 (half of the year), January 01 - June 30, 2024 - Myanmar 2024 Received https://reliefweb.int/report/myanmar/unicef-myanmar-humanitarian-situation-report-no-6-mid-year-01-january -June 30, 2024 [36]
Issues affecting the effectiveness of humanitarian response The study identified the following problems affecting the effectiveness of humanitarian assistance during crises: 1. Looting of humanitarian supplies, which makes it extremely difficult to provide necessary assistance to those in need. 2. The unstable security situation, which often led to delays and reduced aid distribution. 3. In addition, there is serious concern about the insecurity faced by humanitarian workers, especially in connection with the numerous murders and abductions recorded among humanitarian workers. 4. Bureaucratic difficulties and various restrictions imposed by the Government of countries are also a huge obstacle to the effective distribution of humanitarian aid. 5. Political manipulation and lack of government accountability in various countries pose significant obstacles to the effective distribution of humanitarian aid.
Recommendations 1) Aid donors should cooperate with foreign peacekeeping forces and local authorities to establish safe shipping zones and hire security guards to ensure the safety of their workers. 2) The scale of looting can be mitigated by involving the local population in the planning and implementation of aid distribution. 3) Drones or satellite photography can be used in real-time monitoring systems to help donor organizations quickly assess security situations and make necessary logistical adjustments, allowing them to respond quickly to changing security dynamics. 4) Simplification of bureaucratic procedures should be promoted and clear instructions for assistance should be developed. 5) It is necessary to invest in training civil servants in the principles of humanitarian aid for the timely delivery of aid. 6) Transparency in the distribution of humanitarian aid through independent audits and public reporting, as well as cooperation with local NGOs and public organizations, will help prevent political manipulation.
Conclusion In third world countries experiencing humanitarian crises, foreign aid is needed to alleviate immediate suffering, but problems such as political manipulation, bureaucratic obstacles, and dependency often jeopardize its long-term effectiveness. Dependency theory highlights the need for a more complex type of assistance that empowers local communities. Case studies in Haiti, Myanmar, Yemen, and South Sudan highlight the complexity of humanitarian situations and the shortcomings of traditional aid paradigms. The effectiveness and delivery of aid are seriously hampered by political factors, insecurity, and logistical challenges. The global problem of "aid fatigue" highlights the need for responsibility and openness in aid delivery. The implementation of decentralized assistance and collaboration with local groups are two methods that prioritize capacity building and local participation to enhance the effectiveness of humanitarian assistance. References
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