In the last decade, many countries have practiced a policy of Tied aid in order to benefit themselves as opposed to supporting the economy of developing nations. With Tied aid,” contributing nations sponsor the construction of dams, factories and seaports with the proviso that the receiving country must purchase products and services from donor countries. Canada should stop forms of Tied aid because donor countries want to get benefit from poor countries.
The matter is Tied aid is promoting goods and services from donor countries. Second, donor countries also want to secure substantial resources from developing countries. Some receiving countries have “fallen deeper in poverty” because they are saddled with a debt. Hence, Canada should stop funding needy countries clause by clause. Instead, we should help them in order to weather a financial crisis.