The rapid economic development in many countries implies that it is important for them to strengthen their position in the global market. This can be achieved if every country is independent in terms of finance, something that is not easy to obtain, maintain, as well as sustain. The reason behind a lack of financial independence in countries is that most of the countries are developing, and there are trade relationships are not fully developed. This means that most third world countries are forced to get foreign aid from the developed nations to developing trade. The fact that countries get help from others does not imply that it is the most effective way of their economic growth. Increased trading activities, augment competition, which forces the parties involved in a trade to improve their products and services to meet the international standards. To gain more information concerning the trade versus aid, this argues that countries should rely on trade, but not foreign aid.
Trade is held as a foundation the international cooperation. This is because parties that partner in the trading relationship represent a continuing market for goods and services. In this context, a third world country that engages in trade with another country boosts its trade relationship. Trading relationships make nations equal partners in the international market. The benefits obtained from the investments are more efficient for the development and growth of the country. This is because trade is not a one-trade help, but a constantly growing impulse. It promotes the flow of money and goods into the third world nations, without caring whether developed nations are doing well or not in term of economic development. However, it is not a simple thing because many states face do not display the same openness to trade. The fact that some countries lack adequate raw materials to provide the required market does not imply that it is an unsolvable problem. Countries like Japan, South Korea, Singapore, and Switzerland began with few natural resources with good economic policies, and they have significantly developed. If this is compared with the flow of aid, help is less predictable because it can be interfered with by the politicians.
It is crucial to underscore that trade offers the third world countries with the vital basis for improving their economic development. Evidently, to gear up to be excellent trading partners, the developed nations must undergo several changes. In this context, their trade would focus their attention on good governance, the importance of stable currency as well as internal security. Apart from forming the basis for improving the economic development, I strongly reject the use of aid because it is often misspent. Aid obtained from outside favors big project all of which may be beneficial to a few individuals. This is contrasted with trade, which provides profits to the whole population, enabling them to use the additional income as they wish. For example, people may choose to reinvest the profit in their local industries as well as enterprises. What should be known is that aid is an instant help, but not a long lasting solution. In this view, aid can be viewed as a short-term remedy while trade can be used for complete recovery.
Many people argue that trade cannot exist in a vacuum because it requires comprehensive infrastructure to support it. For example, there must be good roads, railways, ports, as well as education to produce capable civil servants to establish trading rules. In this case, without foreign aid, developing nations cannot effectively in the international trade. When people talk of aid, it does not imply it is in the form of money. For example, aid can be provided in the form of expertise, which is critical to countries’ development. Notably, trade and aid are interdependent. This is because, without expertise, trade cannot be administered effectively. For example, it is important for people in a country to have a proper education that offers them an opening to develop personal characteristics and skills. In fact, the level of education in the less developed countries is critical. Outside help is necessary for extreme situations if the trade is expected to bear good fruits. The aid can strengthen the ground for further development if it is spent in the right manner. As a result, this would be an advantage for the reason that it will be an opportunity to open trade relationships.
If the facts are evaluated critically, aid is crucial to boosting the economy of the less developed countries. For instance, it is natural that people would want to trade with one another to turn their resources to their advantage. The limitation of trade is grounded in the fact there are strict rules and regulations that govern it. Thus, if trade barriers are eliminated, would redirect the attention to what the developing nations should do for themselves without relying on aid. If the available resources and skills are utilized in the right manner, the level of education can be boosted. Considering the fact that education is key to the economic development, the profits obtained can be used to promote the sector, which in turn can focus on trade.
Therefore, it is explicit that trade is important for the promotion of development in all countries, developed nations included. This is not only witnessed in economic growth, but also in the maintenance of their dignity. Aid is less related to getting approval and support from the developed countries because it can be viewed from the mirror of acts of charity, which promotes the superiority of the developed nations. The promotion of economic improvement, long-term and impact on global cooperation show reliance on trade is better than foreign aid.
