Ph. D Assistant Professor

In: Business and Management

Submitted By msholkamy
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Foreign Aid to Egypt Prior and Post the 2011 Revolution

Mona El-Sholkamy

Misr International University



Foreign aid is one of those topics that have provided ample room for discussion and controversy over the years. The world has had more than fifty years of experience of aid giving and receiving in the post-war era. This experience has enriched our knowledge not only about aid -- a broad subject with numerous interrelated issues -- but also about the entire development process foreign aid supposedly seeks to accelerate. Hundreds of billions of foreign aid dollars have been designated to developing countries and hundreds of billions more will be provided in the next few years. For the past years, U.S. foreign aid has been judged by its intentions, not its results. Foreign aid programs have been perpetuated and expanded not because they have succeeded, but because giving foreign aid still seems like a good idea. But foreign aid has rarely done anything that countries could not have done for themselves. Furthermore, it has often encouraged the recipient governments' worst tendencies--helping to underwrite programs and policies that have starved thousands of people and derailed struggling economies.
Given this, the question now is how much foreign aid is enough. How much do we really need as an economy at this stage of our development? What type of aid is most effective? Is more aid necessarily better?
Implied in these questions is that the amount and mix of foreign aid depends largely on the economic conditions of the recipient country concerned. Egypt has been a long-term recipient of foreign aid from a multiplicity of sources and in a variety of forms. The US aid has been the dominant component in terms of magnitude and coverage, although other sources, including the European Union, have not been insubstantial. However, and despite…...

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