Foreign Aid

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Term Paper Title	Foreign Aid
# of Words	1654
# of Pages (250 words per page double spaced)	6.62

Foreign Aid

Foreign Aid

     There are two words that many politicians like to shy away , and those
two words are, "foreign aid."  Taking a firm stand on either side of this topic
is usually side stepped by decision makers.   Their opinions are usually based
on a case by case analysis.  This extremely controversial topic involves whether
or not to support the policy of foreign aid to needy or sometimes not so needy
countries.  What benefits does foreign aid have for the countries that receive
it, and does it have any benefits for the countries who give?  Some may say that
instead of spending money on foreign aid, money should be spent on domestic aid.
Those who argue in favor of foreign aid say that it is an investment in the
future of both countries that will eventually pay off.    There is also another
factor to consider when discussing foreign aid: what kind of foreign aid is
being offered.  There are three different types of foreign aid: first, there is
military foreign aid; second, there is foreign aid for the advancement
of business; third, there is emergency foreign aid for food and medicine.
     Foreign aid to countries can help in many ways.  It can be used as a
tool in bargaining.  For instance a country that has just received foreign aid
or is expecting to get their regular installment of foreign aid will be more
likely to listen to new ideas.  Because some countries are so dependent on their
regular installments of foreign aid, they are willing to appease countries such
as the U.S who are giving it.  When looked at closely, foreign aid may be
considered  an elaborate system of legal bribery.  This becomes evident when
countries do what they would normally not consider doing in order to continue
receiving foreign aid.  The U.S supplies financial foreign aid to many different
countries; sometimes this foreign aid is in a form of a loan.  For example,
recently the U.S. supplied Mexico with a loan in order to save the falling value
of the Peso.  This loan was denigrated by much of the U.S. population because
many people don't understand why the U.S. should care about the falling value of
the Mexican Peso.   First of all, deflation of the Peso means a loss of  jobs in
Mexico which would in turn send an influx of illeagal immigrants from Mexico to
the United States.  In addition,  Mexico is a large economy that imports
American goods.  If the Peso's value were to drop, it would mean less buying
power for the Mexican public, and that in itself would ...

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