Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria
TABLE OF CONTENT
Table of content
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
2.0 LITERATURE REVIEW
3.0 Research methodology
3.1 sources of data collection
3.3 Population of the study
3.4 Sampling and sampling distribution
3.5 Validation of research instrument
3.6 Method of data analysis
DATA PRESENTATION AND ANALYSIS AND INTERPRETATION
4.2 Data analysis
This study was on Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria. Majority of the developing countries depend on one form of assistance or the other from the developed nations to improve their general economic welfare even though it has been argued that the donor countries benefit more from this grant /loan than the recipient countries. The interdependence of developing countries necessitates the granting of aid to needy countries. However, analysts have diverse opinions about factors responsible for the underdevelopment of Africa. Many assumed that the underdevelopment and dependency situation of most African countries on foreign aid are due to poor leadership, mismanagement of national resources and elevation of personal aggrandizement and primordial interest over and above national interest. The neo-Marxist scholars, on the other hand, submitted and insisted that what propelled the development of developed countries are also the same factors that facilitated the underdevelopment of developing countries. These factors are: colonialism, slave trade, and unequal exchange
1.1Background of the study
Foreign aids are mostly said to be grants and loans that a donor country advance to another nation (recipient co un try) with the motive of accelerating economic welfare. These grants are taken by official sector.
The growing gap between the developed and developing countries has dominated international relations and diplomacy for a long time. This gap has led to constant capital inflow from the developed countries to those in the Third World including Africa, with the goal of helping them overcome their problems and reduce the gap. However, there is evidence that decades of foreign aid have done little in changing the destinies of many African states, most of which are currently experiencing low growth rates. This suggests to some extent that there is more to the African problem than just sending money there as this is not likely to turn things around. Estimates suggest the West has spent about $600 billion on foreign aid to Africa so far (Akonor, 2008). Yet underdevelopment is widespread, while at same time some states are considered to have collapsed (eg. Somalia).
However, given its dismal development records, Africa falls short of being able to provide its people with adequate resources, to have even the basic capabilities to feed its population and prepare suitable ground for development, the need for foreign aid in these countries seems indisputable. Particularly, today, with soaring fuel and food prices, aid to Africa has even become more essential and timely (Ravinder, 2008).
For countries like Nigeria foreign aid activities date back to the assistance of USAID since 1960, when Nigeria got her independence as the 26 African country. As a result, the U.S. Government awarded grants to four major U.S. state universities (Michigan State, Wisconsin State, Kansas State, and Colorado State) to build colleges of agriculture in four Nigerian Universities: the University of Ibadan, University of Nigeria-Nsukka, Ahmadu Bello University-Zaria, and the University of Ife (USAID, 2004).For quite some time now there has been a cascade by many developing nations for an increase in official development assistance (ODA) because of the need for these countries to alleviate the standard of living of their citizens. On the other hand, the developed nations, international organizations in conjunction with some philanthropists made a massive infusion of development aid to developing countries including Nigeria. According to Conchesta (2008), a country like Nigeria is known for low level of income, high level of unemployment, very low industrial capacity utilization, and high poverty level just to mention a few of the various economic problems these country is often faced with. Mostly, humanitarian aid has gone a long way to saving lives, provision of free health care services to the sick and deprived, medicines for those vulnerable to diseases in emergencies.
More so, foreign aid are considered a necessity for the development of Africa as well as Nigeria since it is seen as a means of increasing capital for economic growth and investment, reducing poverty and raising the standard of living of persons, contributing to the transfer of skills, technologies and production methods, increasing product diversity and generates employment (OECD-DAC, 1999; Bakare, 2011).
Based on this background the researcher wants to investigate the Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria.
1.2 Statement of the problem
Two questions are pertinent: firstly, is there any clear link between foreign aid and (under) development in Africa? Secondly, has aid succeeded in making Africa better or has it undermined progress? There is no agreement on the appropriate answers to these questions. study argues that without a proper understanding of the culture of the people aid seeks to help, no effective impacts should be expected. Although we reckon the impact of external variables, we propose that a better appreciation of the internal dynamics of the recipients of aid is more likely to ensure aid contributes to sustainable socio-economic development. In many cases, people have certain fundamental belief systems and practices that influence their perceptions of what development should entail. If these factors are ignored, one cannot have a holistic understanding of the dynamics of aid, politics and socio-economic development in Africa, Nigeria in particular
1.3 Objective of the study
The objectives of the study are;
- To ascertain the impact of foreign aid on Nigeria development
- To ascertain how successful is foreign aid in development of Nigeria
- To find out the challenges of foreign aid in developing Nigeria
1.4 Research question
- Is there any impact of foreign aid on Nigeria development?
- Is there success of foreign aid in Nigeria development?
- Are there challenges of foreign aid in developing Nigeria?
1.5 Research hypotheses
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: There is no significant impact of foreign aid on Nigeria development
H1: There is significant impact of foreign aid on Nigeria development
H02: there is no significant success of foreign aid in development of Nigeria
H2: there is significant success of foreign aid in development of Nigeria
H03: there are no challenges of foreign aid in developing Nigeria
H3: there are challenges of foreign aid in developing Nigeria
1.6 Significance of the study
The study will be very significant to students, government of Nigeria and the policy makers. The study will give insight on the Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria. The study will state the challenges face by foreign aid in developing Nigeria. It will also come up with the solution to the challenges of foreign aid. The study will also serve as a reference to other researcher that will embark on the related topic
1.7 Scope of the study
The scope of the study covers Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria. The study will be limited to Nigeria
1.8 Limitation of the study
The researcher encounters some constraints which limit the scope of the study namely:
The research material available to the researcher is insufficient, thereby limiting the study
The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.9 Definition of the terms
Foreign aid: Foreign aid is any type of assistance that one country voluntarily transfers to another, which can take the form of a gift, grant, or loan. Countries may provide aid through capital, food, supplies, and services such as humanitarian aid and military assistance
Development: Development is a process that creates growth, progress, positive change or the addition of physical, economic, environmental, social and demographic components. The identification of these traps enables relating to political – economic – social conditions in a country in an attempt to advance development.
Challenges: a call to someone to participate in a competitive situation or fight to decide who is superior in terms of ability or strength.