Initiated by former U.S. president George Marshall to provide economic assistance to European countries victimized by the Second World War, foreign aid, plays an important role in developing a country, particularly in developing nations where the dependency ratio is high.

Countries who utilize aid properly are able to develop infrastructures, maintain them and even develop them as major sources of national economy.

The aid not only strengthens the mutual bonds between two different countries but, unemployment levels are also lowered, thus helping the HDI (Human Development Index) to increase.

Hence, foreign aid can be a boon for the development of many countries around the world. So, it has many positive aspects, but it can also be wasted through corruption and selfish motives of those in authority.

Foreign assistance is being provided to many developing countries of Asia and Nepal too gets foreign aid from different countries like Japan, America, China, England and various other international donor agencies.

Nepal has been a recipient of foreign assistance since 1952 when it joined the Colombo Plan for Co-operative, Economic and Social development in Asia and the Pacific. Japan is Nepal’s largest bilateral donor whereas the World Bank and Asian Development bank are the largest multilateral donors.

Observing the present condition of Nepal, and even conversing with some of our country’s leaders, I have realized that foreign aid has been effective in some areas of the country, but it has not been utilized honestly to its optimum level without any corruption.

Also, there is a lack of uniformity in the practical utilization and application of foreign aid. As a result, aid has been more beneficial to the employers rather than the needy employees.

Due to the political instability, as well as the lack of responsibility in political parties and pressure from local people to complete key goals, the periodic economic plans are not successfully achieving their objectives.

In spite of the fact that the flow of funds from rich to poor countries is increasing to help climate change prevention schemes, the Nepal government is not utilizing the aid to its optimum level and care for the maintenance of infrastructures developed with the help of the said aid.

As a member of the UNO and with the experience as member of Security Council of the UNO twice for two years in 1969 and 1988, Nepal holds the responsibility in promoting world peace by helping establish and maintain mutual relationships between the member countries of the organization.

Although it is maintaining a good reputation in the international world, there is a threat of the country being blacklisted soon, as bills regarding the money laundering issue could not be passed unfortunately in parliament before the deadline.

This comes with the danger of declination in the reputation of Nepal internationally. The Financial Action Task Force (FATF) initially formed for G7 nations in 1989 had asked to pass the bills by Feburary 13, 2012. This was delayed by some leaders of the governing party.

Nepal is currently being fed by foreign donors. If all Nepalis try to be independent and learn the secrets behind the prosperity of donor countries, Nepal too can become prosperous.

It is time for our leaders to finally form a constitution and show interest in concluding the peace process, to demonstrate that we, as a nation, are ready to change and step forward in a constantly developing world.

Written By: KAILASH RAJ PANDEY, Published on 2012-03-21|http://www.myrepublica.com/portal/index.php?action=news_details&news_id=33050