Developed countries have been providing financial aid to third world countries for decades, but it has not changed the economic situation of poor countries.

Developed countries have been providing financial aid to third world countries for decades, but it has not changed the economic situation of poor countries. I accord that this aid should be replaced by other more effective types of help and I will discuss the reasons in the paragraphs below. The main reason why simply transferring funds to economically weak countries is corruption at the government level. It has been reported by many of the international organizations working to reduce poverty in the underdeveloped countries, that misuse at the higher levels never allow the benefits of the aid to reach the ordinary people. It must be noted, however, that sometimes these countries are in need of hard cash to pay off their debts for the benefit of their people in the long term. Secondly, the lack of proper infrastructure and advanced technology makes it hard for the aided countries to utilize the grants in an optimal manner to have a long term effect on the prosperity of its people. Therefore, it is much better for developed countries to invest in the infrastructure that will help to create more jobs and will have a major impact on the reduction of poverty. In conclusion, simply handing out money to the underdeveloped countries will not help them escape the vicious circle of poverty, and help in other forms must be extended to enable them to break free from their current state.