Optimising the Development options in TWCs: Looking beyond Foreign Aid

Abstract

Growth development theorists such as Rowstow have averred that third world countries (TWCs) need foreign Aid to stimulate development and move them into the 'take-off stage' which is characterized by growth and development. However, after decades of aid inflow into TWCs, the majority of TWCs are still struggling to achieve their development objectives. Therefore, it is doubtful if aids alone can jump-start development in TWCs. This reality has given rise to a plethora of alternate propositions aimed at realizing the development objectives of TWCs. The central argument of this paper is that Aid alone cannot improve the status of TWCs. It is further argued in the paper that Aid needs to be complemented by stimulants (initiated within TWCs) such as Remittance, Taxation, and Public-Private Partnership (PPP) to solve their economic development problems. To this end, it is suggested that an approach which combines indigenous options with Aid will significantly advance the development objectives of TWCs.