Foreign aid - a global foreign policy tool for Germany

Bachelor Thesis from the year 2007 in the subject Politics - Topic: German Foreign Policy, grade: A, University of Malta, course: B.A. (Hons.) International Relations, language: English, abstract: In global affairs, the issue of poverty alleviation has intensified the question over foreign aid. Both the North and the South have their responsibilities in allowing the gap between them to widen, and this global issue worsening. However, dominant countries are able to dictate and influence international relations so as to enhance their interests. Less powerful countries on the other hand remain in a dependent position, having little choice but to accept the conditions set, while they also seek to secure their interests.
In the context of this paper, the aim is to illustrate how foreign aid to Africa has been a global foreign policy tool for Germany. Foreign aid has allowed the growth of German markets for its exports, and thus boosting its economic status at a global level. Foreign aid has also provided employment for those working in the international development cooperation sector. Hence by becoming a powerful economic player, Germany has also gradually increased its status as a global political player. Within the context of global security challenge, foreign aid has also been used as a global foreign policy tool in the context of fighting poverty and the promotion of democracy under the banner of good governance. Foreign aid has also helped in promoting local projects in the developing countries, where for instance German environmental expertise remains necessary. However, the poverty plight has worsened over the last decades, and this thus questions the use for foreign aid. Radical critics argue that it has not been effective in developing Africa but rather contributes to its continuous dependency and hinders genuine economic development. And it has been sadly furthering the process of poor subsidizing the rich through the South-North flows. Ultimately, only time may improve the situation of global inequality, through all ongoing projects. The North-South gap however ultimately seems to have become a spiraling cycle with foreign aid considered the ultimate cure for all ills of the South. However, a status quo has been established in the global economy and it would be difficult and would take a long time to change it. Any recommendation would therefore be for fairer trade and the continuing efforts towards improving the situation in the South through sustainable projects with the environment as a major consideration.