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This question will debate the consequences and implications
of developed countries aiding those that are developing and in need of relief. I
believe that this is a growing issue; as we give more money to in need
countries, it could be causing more harm than it does good. It may sound
ridiculous that foreign aid hurts more than it helps but research from Angus Deaton,
a Nobel prize winning economist at Princeton University, suggests otherwise.

Deaton’s prize was received for his work in India and across
Africa, he studied how the underprivileged used the money received. His
research revealed that the funding corrupts the government which in turn
damages the growth. For instance, Deaton claims that the majority of the $135
billion spent on official aid in 2014 may not in fact be helping the poor at
all. Another example is Egypt: for years America gave foreign aid amounting to
around $2 billion per year and $1.3 billion of this was in fact spent on
funding the Egyptian military. While the rest of it is assumed to be
predominantly going straight to government official’s pockets.

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During the mid-twentieth century the political argument to
supply foreign aid began, because the wide spread belief among economists was
that injecting money into infrastructure and factories was the best way trigger
and accelerate growth. Deaton wasn’t the first to challenge this idea however his
arguments had a much more significant understanding of the data than anyone
else from the decades previous. 

Alternate ideas proposed that controlling the population is
a much more effective method than providing aid, this is based on a theory
known as the Malthusian trap: this is the theory that as population growth is
ahead of agricultural growth, there must be a stage where the food supply is
insufficient. As sub-Saharan Africa is the least developed region in the world,
population continues to grow exponentially- it would be represented as the
second stage of the Demographic Transition Model where although death rates are
beginning to slow due to improvements in sanitation and health care, birth
rates remain extremely high.

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