2) Analyze the impact of securing foreign aid to the development of a country. how far do you think the government should comply with the rules put by the borrowers and why you say so?



In our opinion,the impact of securing foreign aid is that we will be too depend on the borrower countries or agencies. Since we get the aid,we are bound to their rules. Once we are breach one of their rules, the borrowers have a right to take back the aid as they like. For example, our former Finance Minister, Anwar Ibrahim want to borrow money from World Bank since Malaysia were having economic crisis on that time. however, our former Prime Minister, Tun Dr. Mahathir Mohd did not agree with that action since he can foresee our country condition in the future if we take that aid we will facing a big problem. so, it is better for us not to get foreign aid since it will affected our country. we can see the effect through Indonesia country who had borrowed money from the World Bank. their country now are suffered from settle down all the loan that they had get. as a lender, the government should follow the rules that are made by the borrowers but the term and condition should be relevant so that it will bring benefits for both side. as for the lender side, they are able to improve their development since they have enough resources. while for the borrower side, they can make the aid as an investment since the lender will pay back their money in the time that had been stated and agreed by both parties.