The issue of foreign aid to underdeveloped countries and the effect it has on their economy, as well as the economy of donor countries have been the subject of great controversy. The reason for this controversy is the fact that while some might argue that foreign aid is beneficial to the economies of countries in need, for multiple diverse factors, others debate that aid does exactly the contrary and rather negatively affects the economy. Nevertheless, foreign aid is a factor that negatively affects the economy of underdeveloped countries because it stimulates dependency and creates a cycle of negative economic choices. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay In the article Aid Dependence: The Damage Caused by Donations, a precise definition of foreign aid decency is given. The author states that “aid dependence refers to the proportion of government spending that is provided by foreign donors.” The question, however, is: how does foreign aid increase dependency? Foreign aid to underdeveloped countries increases aid dependence because when a country receives economic aid, that country will then be in debt to the country providing that aid. If the underdeveloped nation did not have the economic means to perform well in certain areas and therefore needed to accept foreign aid, then that country will certainly not be able to pay its debts instantly. The problem with not paying a foreign aid debt is that over the years the debt constantly increases. A hypothetical example is if a country had $2 million in debt in 2010, then by 2017 that debt could have grown to $5 with interest alone. This would force this poor country to rely on additional foreign aid to keep the nation alive and slowly pay its debts. There are many other factors caused by foreign aid, which also contribute to the underdevelopment of a country. James Roberts provides one in the article Foreign Aid: Breaking the Cycle of Dependency when he states that "Unfortunately, weak judicial systems and corruption in the public and private sectors greatly hamper democratic institutions and prevent many potential countries of the MCC Compact to grow and develop. .” Furthermore, he also states: “Instead, it tends to promote policies that create economic distortions and foster dependence on government. It reinforces rather than solves problems that undermine sustainable development, including corruption. » Keep in mind: this is just a sample. Get a personalized article from our expert writers now. both the growing nations of the world and the developed nations that have a strong economic base. Even if the intentions of foreign aid are straightforward, an underdeveloped country has neither the foundation, nor the government, nor the intention to go into debt by accepting aid from stronger countries. Various solutions, such as programs, should be considered before considering providing money via foreign aid..