1 Answer

Foreign aid is more like an investment in a risky market situation. The relative weighting of advantages and disadvantages depends on the planning behind the foreign aid and how well-orchestrated it is.

Economic advantages: stimulated economic development in the receiver's country (better infrastructure, more education etc.) --> leads to economic growth. It can also create jobs as increased investment leads to more employment; this means less needs to be spent on unemployment benefits and more taxes can be collected due to the increase in taxable income.

Cultural advantages: I don't know - more helpful nature and good will in the country, more tourism due to good popularity

Geopolitical advantages: less risk of war, more information on other countries development in areas like nuclear power/weapons, more equity in the world's economy if richer countries help poorer nations.

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