Foreign Aid and Neoliberalism

This article examines the current global distribution of aid from the perspective of dependency theory. It argues that foreign aid and neoliberalism are intertwined. Third-world countries rely heavily on foreign aid for their growth. In providing aid, donor countries receive more advantages than recipient countries. Donor countries can use aid to mask their hegemonic ambitions, economic dominance, and power. Thus, the sovereignty of third-world states could be undermined, resulting in neo-colonialism.