Task 2:AMD6PC Group 4

Question 12
Analyze the impact of securing foreign aid to the development of the country.How far do you think the government should comply with the rules put by the borrower and why you say so?

To answer the question, we'll first look into the positive and negative impact of securing foreign aid to the development of a country.

Positive impact:

1) It can contribute for a better development in the country

As a developing country, it might be a problem to gain a strong resources. The ability to generate a stable resources is still limited since the country is still developing. Thus, by receiving a foreign aid, it can generate for a better development in the country. The foreign aid might be in term of financial, technology, skills or even education and knowledge. The aid that the country receive can be the foundation for a better development in the future of the country.

2)It can strengthen the industrial relationship between the countries.

The foreign aid can act as an channel to exchange the resources between the countries. The exchange that they made can be benefit to both countries especially in the industrial sector. The exchange of knowledge, fund or technology between the countries will increase the industrial sector in both countries and strengthen the industrial relation between them.

Negative impact

1)The possibility for the developed country to have a conspiracy behind the deal.

Some developed countries might have use this chance to manipulate the developing countries. Since the countries is still developing, there are still weak in term of financial, security, economy and other aspects. By offering the foreign aid to those countries, it can be a weapon that they use for pursuing other purpose such as to take advantage of the developing countries for their own good.

2)Depend too much

The country that had a deal to secured foreign aid from developed country may not be developed because they can be depending too much on the developed country. It is because the developing country will always be hoping for a help from the developed country. This will make the developing country to be overdependent in term of receiving aid from the other country.

How far the government should comply with the rules?
- as long as the country will not be in a worse condition. The borrower country may take advantage from the weak condition of the developing country.
- as long as the problem faced by that particular country can be solved without any complication and dirty tricks.
- it is important to ensure that both countries get the equal advantage from the deal.
- as long as the country can maintain the pride and integrity of the country itself
- as long as no doubt in terms and condition. That particular country should consult with a proper lawyer or another professional expertise before accepting any deal or foreign aid.

Why we say so?
- All in all, it is a rational step to take and seek for a foreign aid but, it is also very important to be sure that in receiving foreign aid, we did not mortgage our pride and country. It is all about to maintain the security, safety and development of political, economic, and social of that particular country.

An example
= Astronaut Program to ISS
- involved Malaysia and Russia
- both country got the balance advantage (give and take)
- Malaysia: have new development in science and astronomy field
- Russia: receive profit by joined venture with Malaysia. At the same time, they gain economic grow.