Does foreign aid help to achieve economic sustainability? / CSS 2023 Essay and Current Affairs

 Does foreign aid help to achieve economic sustainability? / CSS 2023 Essay and Current Affairs  

                                  Outline 

1. Introduction 

2. What is foreign aid? Its scope and extent.

3. History of foreign aid provided to Pakistan 

4. Current status of foreign aid to Pakistan 

5. To what extent is it true that foreign aid helps to achieve economic sustainability? No, it is not because:

5.1. Foreign aid is short-term help to overcome balance of payment issues 

5.2. Economic sustainability is not attained through foreign aid 

5.3. Different types of aid, i.e., military aid is only for military purposes, not for the economy 

5.4. Reliance on foreign aid results in a fragile and puppet government 

5.5. Foreign aid affects the national image of the country as a beggar in the international community 

5.6. Foreign aid does not reach the poor due to the control of the elite and powerful classes 

5.7. Certain restrictions imposed by the providers on spending the aid 

5.8. Supply chain is not transparent, i.e., no check and balance mechanism in NGOs or other organizations providing aid 

6. What rationales are behind the country’s move to seek foreign aid?

6.1. High current account deficit 

6.2. Fewer development funds 

6.3. Lack of money to meet basic needs 

6.4. Currency value depreciation 

6.5. Balance of payment issues 

7. What are the impacts of foreign aid on the recipient country?

7.1. Dependency increased 

7.2. Corruption increased 

7.3. Exploitation from donors 

7.4. Economic and political instability 

7.5. Affects local markets 

8. Recommendations 

9.1. Balance budget deficit 

9.2. Increase exports

9.3. Increase tax collection 

9.4. Strong check and balance mechanism to eradicate corruption 

9.5.increase business opportunities for locals 

9.6. Soft policies to increase foreign direct investment(FDI)

9. Conclusion 

CSS 2023 Essay and Current Affairs