The establishment of international and regional intuitions which conveys a different perspectives and claims such as; harmonising social and economic integration, spreading democratic values and political inclusiveness or human right protections. To some extent, these institutions provides aids into a variety ways, in some cases, they participate institutional capacity building in the developing countries and provides the technical expertise’s, for instance, IMF has great role in terms of financial and economic stability around the world, which gives the capacity to influential the outcome. Thus, the IMF is well knowing thought-out the developing countries, to the elites and masses alike, the organisation often appears to exercise as much or even more authority then their own government, similarly the United Nation has massive presence around the world through IGOs, regularly they employ the brightest peoples within that region, consequently, this disables societies to be innovative and create tangible economic sector which the country can benefit and depending it on, instead of a foreign aid.
Historically, the phenomenon of foreign economic aid as it is understood today originated from the aftermath of the Second World War. In 1945, delegate from 40 countries agreed in Bretton Woods, New Hampshire, to create institutional for new monitory system and a multilateral world economy. Among the newly created institution was World Bank, which comes into existence on December 1945. Its primary objectives was to make financial resources available to war-torn economic in Europe. It became the basis of multilateral aid. Also at this time, a number of colonized nations gained their independence and become a candidate for foreign aid. In 1945, however, United State shifted its European development funds back to bilateral mechanisms by creating the European Recovery Program (Marshall Plan) leaving the bank only a minor role during the years of European reconstruction. After the creation of the bilateral US program and a UN program for European reconstruction, the bank shifted its focus toward developing countries.
The European recovery program was named after the General George C. Marshall, provided $497 million in reconstruction loans in 1947 and disbursed more than $13 billion dollar by 1952, 89 per cent of which went to Europe, by all created the plan was great success and was largely credit the economic growth rates of western European economies by early 1050s. The Marshall plan ended, the 1953 Mutual Security Act established a new US foreign aid program, though the US commitment to assisting less developed countries comes earlier in the Fourth point of president Harry S Truman 1949 inaugural speech. (Janine L Bowen 1998)
The success of Marshall Plan encourages the developing countries to demanding some treatment to confront the economic crisis that are happening within and reduce the aid dependence which is problematic to the productivity and creativity in these societies. In addition, to emphasis the commitment that has been made the DAC members international target in the aid field is that of raising official development assistance (ODA) to 0.7% of donors’ national income. (ICVA, 1997)
In conclusion, Aid dependence has to end and the developed nations has to adopt an appropriate approach , moreover, to eradicate poverty , promote poor people’s basic rights and exploitations, we need to ask them what are their priorities. This means a much greater commitment by Northern donors to high quality aid programmes that works in the interests of the poor people.
Janine L Bowen 1998[Foreign Aid and economic growth a theoretical and empirical investigation, Pub, Ashgate , England
Reality of Aid management Group ICVA, 1997, [The reality of Aid an independence review of development Cooperation] pub: Earthscan publication limited, London
History of the 0.7 ODA Target http://www.oecd.org/dac/stats/45539274.pdf accessed 10/12/15