Although International aid rapidly increased from the 1980s onwards, its origins can be traced back to just after the Second World War, when the Marshall Plan (1947) was first introduced. A US initiative, comprising of $13 billion (around $130 billion today),the Marshall Plan aimed to improve Europe’s economic performance through boosting trade and the production of goods, and later was implemented in other parts of the developing world, due to its success in Europe, where GNP was at an all time high. This today has been the basis for all international aid, the aim of improving stability and increasing peace and prosperity in other nations to ensure security. However, international aid has sparked an ongoing debate with two antithetical positions towards it. On the one hand, many believe that foreign aid has led to more prosperous lives in LEDCs and has improve social welfare, whereas others disagree and believe it creates a dependency culture and creates a cycle of poverty. Thus, the issue of international aid has never been easy to resolve.
Approaches to development rely on a particular world view. Understanding development in terms of wealth can lead to different practices and different results as understanding development in terms of freedom. The UN has taken the ‘alternative’ view on development, focusing on human development, rather than focusing on national wealth. However, even within this one organisation, changes in their ‘world view’ can be seen, affecting their development programmes.
Neocolonialism involves a country using political, economic or other resources in other countries to gain influence or control. It has commonly been understood as a relationship between the Western core and its Southern and Eastern counterparts. However, with the identity of the ‘core’ transforming as new emerging countries increase their share of global wealth, this pattern of neocolonialism might also be changing.
The following videos explain the connection between corruption and poverty and how the West facilitates much of this corruption
In attempting to assess the policies, namely the neoliberal policies of the last thirty years on the poor, three different ways of measuring poverty have been put forward, all with their own merits and disadvantages The first way of measuring it is the absolute income approach. The World Bank currently measures poverty in terms of people living on less than $1.90 a day. This approach has shown poverty to decrease from 50% of the world’s population in 1980 to 10% today. Peter Edwards criticizes the $1.90 figure for being too low, himself proposing $7.60. That to shows poverty to have gone down from 73% in 1980 to 60% today (as a % of world population). These absolute income approaches all show poverty to have gone in % of people down since 1980, and so are deemed inadequate by critical theorists who insist poverty is more than just how much someone is making. The next way of measuring poverty is the relative approach. Those advocating this approach insist that poverty is relative- Adam Smith himself saying …