ABSTRACT

The substantial increase in aid, which is foreshadowed by Kennedy's message on Food for Aid and his programme for Latin American reconstruction, suggests an urgent need for reconsidering the impact. Which aid has impact on the recipient country's political situation; on the character and methods of its economic planning and outlook; and on its relationship with the aid-giving country. An enquiry on the psychological impact of foreign aid in a given country must necessarily start with a historical analysis of the relations of that country with the outside world. The historical background which will shape the predispositions of government and public opinion to renewed foreign influence which foreign aid inevitably brings in its train. In this respect one must distinguish between countries according to their historical experience. The automatic exploitation, which has come more to the fore, represents an unequal sharing of the gains and burdens of the impact of modern economic activity in the underdeveloped territory.