I will discuss the effectiveness of United States bilateral development aid given to Benin and Liberia and its impact on economic development. Although the U.S. has given aid to Benin and Liberia, the assistance hasn’t improved the economic development of neither recipient country.
Benin and Liberia are two West African countries considered to be low income nations with different internal conditions. Benin is a stable democracy with great relations with the United States that remains underdeveloped. In contrast, Liberia has faced different tribulations with inconsistent bilateral relations with the United States due to different ideological alignments.
In my study, I utilize a variety of economic factors and perspectives on historical relations between the United States and the nations of Benin and Liberia. The economic factors are Gross Domestic Product (GDP), Gross National Income (GNI), GDP per capita, GNI per capita and the Human Development Index. I examined the allocations of bilateral economic development aid to both countries. To look at possible shifts in data, I look for possible historical conjunctions. Both countries have improved; however the spending of each country is greater than the income of either country.
The GDP, GNI, GDP per capita and GNI per capita increased over the 16 year period. There were decreases in data from 2002-2003 for each of these categories for Liberia. Benin saw decreases in 2008-2010 per category. Both countries have maintained low development statuses overall. Although foreign aid can be advantageous, the development of a country relies primarily on the recipient state.