The Effects of War and Peace on Foreign Aid, Research Paper Example

Assertions made by researchers’ claims that foreign aid in Sri Lanka instigated ethnic violence, yet its intention was to construct nationwide irrigation system. For example, the civil war that broke out in 1983 between Tamil and Sinhalese groups, where growing tension was exacerbated between these groups, ended in May 2009 (Dharmawardhane, 2013) after the military defeated the LTTE (Liberation Tigers of Tamil Eelam). The Mahaweli project saw the increase of foreign aid in Sri Lanka and was used to benefit one ethnic group at the detriment of ethnic minorities. As stated by Dambisa Moyo, foreign aid “foments conflict” (2009, p. 59), which means that conflict is increased in many nations. In addition, long run labor supply and capital accumulation is reduced by the presence of foreign aid in Sri Lanka. This is dependent on marginal propensity that will spend on export goods and aid conditions, and the foreign aid here, cam either improve donor’s trade terms while worsen that of the recipient (Krugman & Obsfeld, 2003). In developing countries like Sri Lanka, aid affects the country’s economic growth, that is, when state interventions are not used. Aid has been of use in Sri Lanka because economic growth of the country increased and this subsequently increased the living standards of its citizens (de Ree & Nillesen, 2009). For instance, the GDP per capita of Sri Lanka is high and enjoys high literacy rate, lowest infant mortality rate, and high life expectancy rates. Therefore, the country has become prosperous and the likelihood of rebellion diminished.  Lastly, structure income of Sri Lanka changed and diversity is enjoyed by many in the country thus, conflict decreased.

The war brought good things to Sri Lanka because in 1997, the military troops were expanded by the government. This rapid expansion saw the creation of 400,000 new jobs to the urban poor and other marginalized segments of Sri Lanka’s traditional society. It is also noted that transportation sector improved with the migration of 500,000 Tamils and remittances for the country reached almost $500 million in a years. For those families whose children, husbands, brothers and sisters were in combat, substantial pension benefits were provided to those who lst their loved ones to the war. The government has been able to play a vital role in the success of Sri Lanka since the government has invested on human capital early in the nation’s history. In addition, the leaders have exercised sound economic leadership. The widespread economic programs have provided Sri Lanka’s people with cheap staple foods, free medical services, and free schooling. This shows how the government invested more on human resources and the promotion of gender equality. In the early years, the government pursued policies ascribed to socialist. In relation to leadership, the President Kumaratunga has succeeded in pursuing economic strategies that sought market-oriented solutions. Additionally, by adding sales tax, tax structure of the nation was altered to be more market-driven (Winslow & Woost, 2004).In Sri Lanka, foreign aid has managed to bring the poverty line down and this has seen the rise of living standards of the people. Furthermore, warfare incidences have been reduced with the aid of foreigners because they have given the people of Sri Lanka hope for a better tomorrow. This has been achieved through the reformation program accorded to combats lost in the warfare (Dharmawardhane, 2013). As a result, the extension of foreign aid to the country has given the nation of Sri Lanka the opportunity to enjoy what other people in developed countries are enjoying. Moreover, it is evident that the number of poor people in the nation has reduced since they all have access to social amenities like schools and health facilities that contribute to having a healthy economy of people.

References

Dharmawardhane, I. (2013). Sri Lanka’s Post-Conflict Strategy: Restorative justice for rebels and rebuilding of conflict-affected communities. Perspectives on Terrorism, 7(6).

de Ree, J. & Nillesen, E. (2009). Aiding Violence or Peace? The Impact of Foreign Aid on the Risk of Civil Conflict in Sub-Saharan Africa. Journal of Development Economics, 88, 301-313.

Krugman, P. R. & Obsfeld, M. (2003). International Economics: Theory and Policy. Pearson Education, Boston, USA

Moyo, D. (2009). Dead Aid: Why Aid is not Working and How there is a Better Way for Africa. New York: Farrar, Straus and Giroux.

Winslow, D. & Woost, M. D. (2004). Economy, culture, and civil war in Sri Lanka. Indiana University Press.