EXCESSIVE RELIANCE UPON FOREIGN AID - DEVELOPMENT ECONOMICS


As already mentioned , the poverty in west Africa   has led to many of the countries  seeking loans from some of the advanced  countries. In many cases these counties have tended to  depend mainly on these foregoing loans or gifts   for the financing   of their development projects.  It is  an age long adage   that he  who pays the piper dictates the tune and so the  benefactors and not the beneficiaries often dictate the projects   for which   their aid would have to be utilized . In this case one  would not expect them to finance any project that will seriously  compete with their own industries even when it is  clear that such  projects are veresentaila in
the country 
In many cases the donor country requires that any  loan granted must be sued in purchasing equipment from her. This restricts   the freedom of the recipient country to make the best bargain  in the buying process not only this, the  equipment often given in  the form of loan are of obsolete   technology. This definitely does not   make for high efficiency in production. For  one thing, in some cases  the spare parts are not available since the manufacturers no  longer produce such equipment . As a result of this most of the  equipment soon become out of use because the spare parts are  not available . Because of  the  restriction on their freedom  to choose from which country to buy they are often forced to buy  even at high prices whereas similar equipment can be obtained  elsewhere at a much lower price
not only the above, we have to note also   that in some cases the expected assistance may not be forthcoming . such  can easily   thwart national plans as was the case   with Nigeria plan of   1962-1968.  Much of the money needed for the plan execution   was to come from outside sources but to our dismay it  was  not forthcoming. This  emphasized the need for us to rely on  our own  resources for our development  efforts  

References
L.C  Ezeaku (1997) Positive Discussions in  Economic  Uruowulu
Obosi, Pacific College Press Ltd

Black J. (1997)  Oxford Dictionary of Economics . Oxford  : Oxford  
University  Press.

Report of the Conference of FAO 4th Session. Washington D.C, 
November   1984

A.G  Frank, “ The  Development of Underdevelopment”
Development.  Hooool comesta??? Critical Concepts in the Social  Sciences  (2005)

Underdevelopment of   Countries. World Problems Issue Online 
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