World Financial AIDS and Socio-Economic Development: The Challenge of Poverty Alleviation In Nigeria
This paper analyzes the effects of foreign aid on the economic growth of developing countries. . The specific objectives were to examine the roles of world financial assistance in reducing poverty; Assess the level of world Bank operation in the nation building through poverty alleviation; and to make recommendation for effective and efficient realization of world financial scheme. The study adopted historical and descriptive analytical method. The results obtained from studies for a sample of developing countries suggest that the poor benefit from the world financial aid by the ability of the banking system to facilitate transactions and provide savings opportunities but to some extent fail to reap the benefit from greater availability of credit. Moreover, it was also discovered that financial development is accompanied by financial instability, which is detrimental to the poor. Nevertheless, the benefits of financial development for the poor outweigh the cost. The study therefore recommends that the commitment of the recipient countries to reform their institutional structures and policies is a necessary condition for aid to be effective, that without political will at the top level, reforming governance may be very challenging. Again, the donors’ country should give the recipient countries an incentive to be less reliant on aids and donors technical assistance. This is believed would reduce poverty and boosts the economy of the recipient countries.