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Foreign Aid In Rwanda

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Foreign aid is the lending or giving of any resource from one individual/group to another. In relation to countries, one or more states decide to give another country or a collection of countries a resources that could be in the form of money, food or medical assistance and many others. Foreign aid has proved to be a sensitive issue between developing countries and developed countries and analysts from both. Over the past decade, books have been written like Dead Aid by Dambisa Moyo, and arguments have risen over the efficiency of foreign aid especially if it is frequent between states over a long period of time. In this case study we look at foreign aid in Rwanda, both pre and post the genocide. The paper will focus on the effects both negative …show more content…

Throughout the case study, overdependence on foreign states has come up multiple times as a reason why Rwanda wants to reduce the level of foreign aid she receives. Corruption is also a big side effect of foreign aid especially in third world countries. Rwanda as well as many other African countries suffers under corrupt leaders who unfortunately are the ones to come into contact with whatever form of aid that comes into the country, especially financial aid. Financial aid has facilitated and increased the corrupt tendencies of these leaders seeing that not all of the resources are used for the intended purpose. A country that has cultivated a lot from foreign aid like Rwanda is Kenya. In 2016, there were ongoing investigations on the theft of funds from the Eurobond the country received for development purposes. A report written by Auditor General Edward Ouko states that, “The management has not provided any list of project(s) that were funded by the Eurobond proceeds. In the circumstance, it has not been possible to confirm how the Eurobond funds were utilized,” (Wafula, …show more content…

This past income has created Rwanda’s investment environment, the roads, education and security; it demonstrates the importance of balance in trade and aid and the role of the recipient, what Paul Kagame describes as ‘aid on our terms’.(Rushworth, 2009). Rwanda has come a long way from the 1994 genocide that left her in ruins. Foreign aid especially from the West went a long way to put Rwanda back on her feet. With proper balance between foreign aid and internal sources, Rwanda is on the right path to healthy economic growth and

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