In terms of macroeconomic goals, aid should be able to overcome low savings rates, help reduce foreign exchange outflows, and reduce the dependency on private investment. Additionally, aid should also improve the living standards of the poorest people, move with times, not simple provide cheap meals, and allow choice to be exercised by the affected country.

As for the Pros and Cons of providing aid, the benefits include improving health, education, and welfare, better  technology and capital accumulation, and to stimulate the economy and foster investment.

The disadvantages of providing aid include encouraging corruption within the affected economy, encouraging dependency, and an increase in indebtedness.

In terms of stakeholders, the individuals that would greatly benefit from the aid given are the less fortunate; the people that struggle to sustain themselves on a regular basis. Since the affected economy is indebted and unable to support their less fortunate members of society, aid is able to support them. The government is affected

because it is the medium that receives the aid, and is able to decide how to allocate it effectively. Of course, depending on the corruption within the economy, the funds may be used to support the elite class’s lifestyle, but under favorable conditions the aid will be distributed evenly. Another stakeholder includes the large organizations that aim to assist developing companies such as the Red Cross or WHO. They have the responsibility, like the government, to effectively allocate the funds that are given to them. For this medium, it is

believed that corruption does not exist, as it is an organization, not a government, but nonetheless it exists.

In the short-run, the country will benefit from aid as it will alleviate pressures such as debt and a suffering community, but in the long-run, if the government is corrupt, aid will never reach the individuals that require it the most.