chapter  6
24 Pages

Foreign Aid: What Is at Stake?

WithPeter T. Bauer, Basil S. Yamey

The effects of foreign aid have been quite different. It is foreign aid that has brought into existence the Third World (also called the South). It thus underlies the so-called North-South dialogue or confrontation. A further pervasive consequence of aid has been to promote or exacerbate the politicization of life in aid-receiving countries. This major result has gravely damaged the interests of the West and the well-being and prospects of the peoples of Third World countries. Thus by foreign aid the West created a Third World, and one hostile to itself. Individual Third World countries are often neutral or even friendly to the West, but the organized and articulate Third World is invariably hostile. Foreign aid also gave birth to the notion of the West (or North) as a single economic decision-making entity, as a homogeneous aggregate with identical interests, and as an aggregate capable of imposing its collective will on the Third World.