Does foreign aid hurt or help poor people?

Few issues in international relations generate as much sustained debate as foreign aid. It is a tricky topic that even the most seasoned politicians can’t seem to conquer without sparking distaste from at least a percentage of voters. One thing that’s somewhat unique about it is the fact that it became a thing only in the past century. Before World War II, foreign aid wasn’t even a thought in the mind for a common citizen. Foreign aid can help a struggling or war torn country only if implemented correctly, and regular checks and balances are set in place.

According to the Britannica encyclopedia, foreign aid is the transfer of goods or services from one country to another. While forms of international assistance existed earlier, modern institutionalized foreign aid did not fully emerge until the 20th century, particularly after World War II. The type of foreign aid that we know today wasn’t common until and after the Marshall Plan and the Mutual Security Act were first implemented, in the late 1940s and 1950s. In the United States, the Marshall Plan allowed more American goods to be exported to other countries, giving the post war and financial depression economy a significant boost. The Mutual Security Act was created in an effort to promote foreign policy in war torn Europe. The Act sent over assistance to friendly and accepting nations, not politically unstable nations that didn’t want assistance.

Even though many people have mixed feelings about foreign aid, there are a few instances where it was executed well. One example of it working well was the response to Hurricane Katrina in the United States. After the devastating storm, allies and non allies of America sent around 240,000 dollars, and the country of Singapore sent around 100 air force personnel to help find missing people and help clean up some of the wreckage. Another example is the United State’s ongoing involvement in the conflict between Ukraine and Russia.Throughout the 20th century, there were a surprising amount of health epidemics throughout the world. An organization called GAVI funded and supported several different vaccines, and managed to increase coverage rights by around 3.5%.

Even though there have been several times foreign aid was effective and helped the country it was supposed to, there have been far too many times foreign aid hurt more than it helped. One reason that foreign aid and humanitarian causes in general have been declining in quality is because most people can no longer afford to donate to humanitarian causes. According to Sam Vigersky, 2025 was the worst year for humanitarian causes on record. Ironically, a diagram illustrated by CFR demonstrated that in 2025, more money was spent on Halloween candy than President Trump has spent on humanitarian causes.The WHite House’s decision to budget funds and slow down funding to the United Nations hasn’t helped, either. One recent example of foreign aid not helping how it was supposed to, is in the United States involvement with Venezuela. In a way, the United States team sent to Venezuela helped in a small way. U.S. involvement in Venezuela illustrates how foreign intervention can destabilize political systems when long-term economic and institutional support is absent.Where the representatives failed was leaving the smaller country after helping to stabilize the government and economy. There are many different examples of foreign aid hurting a smaller nation, and allowing the larger “helper” to establish political dominance.Another such example is the United State’s takeover of Puerto Rico. After making it an American territory, the United States hasn’t allotted the island a large enough funding. After the devastating hurricanes that swept the island in 2017, the country that was supposed to keep them afloat (the United States) failed to help the territory clean up and recover from the tragedy. This caused writer and actor Lin Manuel Miranda to have to start fundraisers to help the island. Since then, many citizens of Puerto Rico have made it known that they no longer want to be a United States territory. Nothing about that is official yet, however.

But we can’t have the bad without the good, and vice versa. Many different politicians, such as Congressman Ted Yoho from the United States, are against foreign aid. People argue that countries shouldn’t be required to use their own funds and resources to help another nation. According to a poll made in December of 2024, nearly 75% of Republicans say that foreign aid should be decreased. And while sometimes, foreign aid can be helpful, if one researches historical data and patterns, most of the time foreign aid doesn’t work out. Why is this? It’s a combination of poor planning, poor implementation, and power hungry leaders. Ultimately, foreign aid isn’t damaging to those in the middle to upper classes. The people who take the brunt of the pain are people in lower classes. A lot of the time, funding goes to fixing large government buildings and refunding those on the wealthier side. Countries in the Middle East, specifically Afghanistan, Sudan, etc, are countries that have received foreign aid. But these nations are still among some of the poorest countries.

Right now, with the way it’s done, foreign aid hurts poor people more than it hurts wealthier people. But if in some sort of conference, leaders from many nations, not just the richest ones, this issue could be figured out. Governments could allow poorer people to suggest concepts, and the governments could vote on one idea, as a trial and error process. If many nations come together, they could achieve so much in terms of foreign aid and other pressing matters.

Many economists describe this problem using dependency theory, which argues that foreign aid can trap poorer nations in cycles of reliance rather than fostering sustainable development. Among all the continents, one stands out in how poorly foreign aid was attempted, if it was at all. This continent is Africa. According to the International Rescue Committee, 10 out of 54 countries on the African continent are in dire need of foreign aid. Around 45% of the population in these countries are malnourished, and millions of children are being affected.

Overall, with the current systems in place, foreign aid hurts poor people more than it helps them. And considering billionaires make up only 1–2% of the population, and millionaires are only around 8%, this shouldn’t be how it is. With many reforms to the system, the concept of foreign aid could be an amazing thing one day.