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Abstract

Huge amounts of foreign aid for development have been flowing to poor countries for more than 50 years, especially on the African continent. Global North countries have claimed that this is to promote development and break the infamous poverty trap. Nevertheless, the majority of these nations have not experienced significant improvements as a result of these financial transfers, as there are still a lot of countries that receive aid but are extremely poor and underdeveloped. Similarly, the majority of the nation's receiving aid have gotten worse, experiencing a stagnation and growing even more reliant on aid. Such a bleak situation prompts a strong debate on whether foreign aid is effective and beneficial. Regardless of numerous research studies on the effectiveness of aid, convincing evidence that suggests development assistance promotes the growth of the economy thereby reducing poverty remains scarce.
Malawi continues to remain in great poverty regardless of being a significant receiver of foreign aid from the 1960s with 50.7% of the people living in poverty. This research paper seeks to add to the body of knowledge already available on foreign aid and poverty reduction. This research examined how foreign aid has assisted to reduce poverty in Malawi between 2000 and 2020 using qualitative methods and secondary data sources. The research found that, despite the fact that Malawi has possibly received significant international aid to help with its economy and poverty-related issues, these targets haven't been achieved due to donor aid conditions, poor cooperation and abuse of public funds. Foreign aid support has not significantly helped to reduce poverty, especially among rural residents who account for a large proportion of those living in poverty. The research recommends the removal of aid conditionalities and strengthening of the government public finance management systems.

Course: International Development Studies (DL) - MSC - P2517PTD

Date Deposited: 2024-02-07

URI/permalink: https://library.port.ac.uk/dissert/dis14374.html