The Effects Of Foreign Aids On National Development

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The Effects Of Foreign Aids On National Development


This study is concerned with the effects of foreign aids on national development. (a case study of foreign health aids to nigeria from (1999-2003). The topic attempt to examine the effect of health aids in nigeria economy from 1999-2003. The world health organization is a specialized agency of the united nations (un) that acts as the coordinating authority on international public health. They also control outbreak of infections, diseases, influenza hiv/aids. They also sponsor programmes to prevent and treat such diseases. Questionnaire were distributed among the staff of world health organization (who) at yusur nations street off yakubu gowon way asokoro, abuja in finding out what they think about health aids received by nigeria from developed countries using table of frequency and percentage in collecting the data. Collected data were analyzed and discussed in the fourth chapter. Percentage techniques were employed in the analysis based on the analysis major findings were made which formed the bedrock of some recommendation made by the researcher the findings that developed countries attach strings to the aids they give to developing nations. The world health organization has helped towards reducing the rate of malaria through the provision of mosquito nets and polio in nigeria. Also executors of projects should not embezzle money allocated for health aids but should use the money judiciously.

Chapter One


Imperialism has been the most powerful force in the world history. It means the process whereby the dominant politico-economic interest of a nation dominate the raw material and markets of another people. Imperialism can also be defined as a policy extending a country’s power and influence by establishing colonies. Foreign and has been said to be a situation whereby developing county gets money and other aids to solve their problems for the good of the masses or citizens. There is no developing county that is not in one way of the other colonial before independence, looking at the third world countries, most especially Africa and using Nigeria as a study, one will begin to wonder what the county has been doing with the different kinds of aids it has been receiving.

1.1 Background of Study

This study is prompted by the poverty level in the county despite huge foreign aids over the year. According to the 2008 world fact book about Nigeria it says that the unemployed rate is 5.8% population below poverty line 60%. It is also recorded that a Nigerian lives below one dollar which is one hundred and fifty naira in Nigeria Currency.

They county (Nigeria received huge sum of money from different organization including the United States of America for improving health sector in the country yet the death rate has increased with children dying by malaria everyday).

1.2 Statement of the Study

During the regime of President Olusegu Obasanjo 1999-2007. The issues of foreign aid was outstanding most especially on borrowing to move the country forward and also on gaining debt forgiveness from the Paris Club which Nigeria owes about thirty billion dollars. Some politicians and scholars believed that getting foreign aids in farm of loan was needed while some said no the idea because it will increase the nations debt profile and make the nation to apply the condition usually attached to such loans.

It appears that foreign aid when harnessed fully and effectively used by the developing nations will actually lead to development. Also, the leading nations and international agencies that give loans should reduce their interest rate and other strings they attach to aid; the main problem of this study.

Includes an attempt to see whether Nigeria should continue to depend on the foreign aid it has been receiving and whether it will lead to the country’s development and whether the politicians and others incharge of allocating resources will be judicious in the application of fund meant for projects.

1.3 Purpose of the Study

This study is an attempt to investigate the effects of foreign aid on the economy of developing nations. In this study also we will look at the advantages and disadvantages of foreign aids. The main issue to be probed in this study are whether countries that offer foreign aid like USA, Britain, France etc attach strings or conduction to the aid given to the developing nations? Whether the receiving nation (developing nations use the foreign aid judiciously.

1.4 Significance of the Study

The significance of this research is to throw more light on the study that will generally give information to the members of the public, people in the public sectors, students specifically to the students of public administration department. Thus information will openly show us how foreign aids is been used in Nigeria, if the aid is selfishly embezzled or if the aid is judicially used.

Academically, thus study will help students and researches aid even financial manages as well as the people in the public sector to know what foreign aid is, how it is used and what is has impacted on the developing nations etc Nigeria.

1.5 Research Question

  1. What is foreign aids?
  2. How can foreign aid be used judiciously?
  3. Has foreign aid done good or bad in the country?
  4. Has foreign aid been a part of development in the country?
  5. Do donor countries and international agencies attach strings to the foreign aids to developing nation?
  6. Are strings supposed to be attached on aid given to developing nations since its called (AIDS)?
  7. Should underdeveloped countries depend on foreign aid for development?
  8. What are the functions of world health organization (WHO)?

1.6 Scope / Delimitation of the Study

This study is on the effects of foreign aids to national development with emphasis on foreign health aid to Nigeria between (1999-2003). This study will look into the way foreign aids helps nations to develop and if it actually does.

1.7 Limitations of the Study

The research is affected by many problems, there was limited resources in terms of finances that is lack of fund to travel in search of data. Also no availability of current relevant text that will give adequate information was virtually unavailable. Furthermore, administrative bureaucracy, time constraint also did a lot in hindering perfect collection of necessary data for the project work.

Finally, another challenge faced by the researcher in this study is the attitude of some people in giving out the necessary data required.

1.8 Definition of Terms

For the purpose if this study, the following definitions will be used.

Foreign Aid:

This is the assistance given to nations to help them deal with different problems and also help them develop. It can also be in form of money, military help, food and health.

Foreign Health Aid:

Foreign health aid refers to aid assistance from one country to another to help combat diseases and other health related illness and as well as building of hospitals, providing of drugs and health machines such as cardiophasclolar machine etc. foreign health and could also be in form of sending doctors to helping treatment of people in the receiving nation.

National Development:

It is a federal government project designed to improve the economic, political, technology aspect of the nation.

Chapter Five

Summary, Conclusions and Recommendations

5.1 Summary of Findings

An analytical approach to this work shows that foreign aids are received by both developed, developing and underdeveloped countries. It shows that foreign aids is good if utilized properly. The finding of this study shows that:

  1. Over the years Nigeria leaders have not used the money gotten from developed nations judiciously.
  2. High strings such as interest rates are attached to aids to developing countries which they find very difficult to pay back as it has amounted to billions of dollars.
  3. Also foreign aids has contributed to much towards Nigeria development by introducing vaccines to the care of malaria, tuberculosis and preventions towards being infected with HIV/AIDS and also provision of mosquito nets to reduce the rate of malaria infection.
  4. WHO’s helps provision of drugs for immunization on children between the age 1 year – 5 years to prevent and kick off polio in the society.

5.2 Conclusion

Foreign aids are foods for both developed and developing societies, the foreign aids to developing country carry high interest rates which makes it different for borrowing countries to repay. That foreign aids has contributed significantly to the development of less developed societies provision of drugs by WHO helps to eliminate polio in the society aid positive effect on the economy of developing nations such as Nigeria.

5.3 Recommendations

The following recommendations were made in the course of the findings of the study;

  1. When seeking for aids for development program or project the developing nations should seek for how interest rate so that that they will not be over burdened in repaying back.
  2. Project embarked upon should be monitored fill it is completed. This can be done by either the community that will benefit from it or through a monitoring committee.
  3. Leaders or executors of project should not embezzle money default officials should be purshed.
  4. Parents should be educated on why it is necessary allow their wards receive immunization through media publishing.
  5. Nigeria needs the help of foreign aids to boost her economy especially towards health aids through the world health organization (WHO).

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