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Advantages Of Foreign Aid

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Foreign aid is the most essential element in the market environment of the developing world. In this area, foreign aids have both positive and negative impacts on donor states and dependent states. There are numbers of advantages foreign aids can bring on market environment, one of which is creating more job opportunities for the citizens in the developing countries. According to Cambodia Labor Force Report, published on November 2013, about 41.5% of employees in Cambodia are working in private service sectors whereas 25.2% more work for industrial and manufacturing. It can be seen that majority of people in Cambodia depends solely on private companies and NGOs for their occupations; therefore, the increase of companies and organizations especially with the help of foreign investment can ease up the decline of employment issues for the developing country. Foreign direct investment (FDI) is one of the most effective aids in promoting development in the developing world. Investors invest their money in certain company to make profits while the recipients receive jobs. It is a win-win situation in which both the investors and recipients can be benefit.
Secondly, foreign aids promote the well-being of the people. As the population grows, the demand and the needs of human also grow. To enumerate, during the 1960s, Cambodia faced a tremendous economic crisis because King Sihanouk, as the head of government, nationalized the banks and export-import trade in the name of socialism,

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