1.0. Introduction
1.1. Background of the Study
Both foreign aid and recipient government have recognized the need to establish a possible link between foreign aid and economic growth and development. Studies on such link have often ended with conflicting conclusion while some have attested to positive impact of foreign aid on economic growth. Others have been unable to establish such link. This paper examine the role of two foreign financing agencies.
Enterprise Development Fund (EDF) and Expert Development Programme (EDP) is promoting Zambia economic growth. It assess and analysis the impact of each of the different sectors of the Zambia economy.
The sector impact analysis includes manufacturing, agriculture, transport and institutional capacities. It concludes that, though it my be difficult to separate the effect of foreign aid factors, efficient and effective utilization of foreign aid finance an contribute to growth is a stable macro-economic environment.
1.2 Statement of the Problems
Several years, aids had given to Nigeria and other developing countries, yet all these aids received by Nigeria had not been able to bring the true development in the country.
Secondly, these aids instead of developing Nigeria have become burdens to Nigeria due to debts services. These aids have really brought the developmental target expected to them; it is due to crafty motives of the donor countries a improper channeling of these aids by receiver country.
1.3 Objectives of the Study
The main objective of this study is to find out if these external aids have really brought development in Nigeria and not to find out why has it not.
Secondly, to discover whether the aids are being given with conditions or without conditions.
Finally, to find out whether there are possible means through which these aids can situated to bring the development expected of them.
1.4 Research Questions
The following research questions will be traced during the process of this research.
- What impact has politics of Nigeria played?
- To what extent has external aids contributed in overall development of Nigeria as a nation?
1.5 Statement of Hypothesis
- Ho: External aids does not impact positively to political and economic development of Nigeria.
- Hi: External aids impact positively to political and economic development of Nigeria.
- Ho: External aids to Nigeria does not encourages neo-colonialism.
- Hi: External aids to Nigeria encourages neo-colonialism.
1.6 Significant of the Study
The main reason for this study is to asses the impact of external aids to political and economic development, the third world countries in general.
The successful completion of this study will provide essential information to both the government of receiver country and the donor country. It will highlight the extent to which the external aids are meant for and ensure that such aims are accomplished.
Secondly, it will provide necessary information to guide further researchers on the subject matter.
Finally, it will contribute in enriching academic growth and development.
1.7 Scope of the Study
This research work will be limited to the impact of external aids to political and economic development of Nigeria (from 1999 — 2005). This research work will thoroughly examine the various aids given to Nigeria and conditions attached to such aids. It will touch the external aids receiver by various governments in Nigeria irrespective of military or civilian government.
The effective of these aids to the development of Nigeria shall be the centre of discussion while its effects on the third world countries shall be referred to from time to time in order to buttress the ills of external aids generally.
1.8 Limitations of the Study
The intention of the researcher is to have a thorough and comprehensive study on the topic, but due to some constraints and factors, the study was limited.
Some of the factors includes funds, and limited time given to the researcher.
1.9 Definition of Terms
In this course of study, a lot of terms have been used and hence, any where they are found in this study, they should be interpreted to meet the definitions proffered below.
L.D.C = Less development countries
DONOR = A person who donates e.g to charity
IMPEDE = Something that hinders achievement
I.M.F = International Monetary funds