International development aid for underdeveloped countries has traditionally been looked upon as a form of charity by Western nations, including the United States. The idea of giving to poor African or Latin American countries is one that resonates in the minds of most Americans. The results of aid, however, have been terrible. Development aid has created a political atmosphere that promotes dependency, teaches self-insufficiency, and often engenders corruption, as the officials who receive the money do not distribute it to the intended recipients.
Moreover, the nature of international aid has fundamentally changed in the 21st century. It has shifted from charity for a good cause to strategic, mutually beneficial partnerships between countries. Even more importantly, the United States has been slow to recognize this change. Rather, China is now the leading country in forging these mutually beneficial relationships. Instead of simply handing over a lump sum of money with few strings attached, Chinese corporations invest in these nations by deploying teams of workers, who tend to be highly skilled, and make a real difference in the development cycle of such countries. Most notably, some Chinese corporations have entered African countries and contributed to their societies and economies. It’s a win-win situation in most cases, as the nation in question receives economic booms, jobs, and help in development, while China receives resources that it needs to continue to contribute to its own growth.
Such relationships may increase the soft power that China wields in these countries. Soft power is essentially the persuasive appeal that one culture and its values and practices hold over another culture. While the U.S. still holds more soft power than China, China could gain the upper hand if it continues to play the game of international aid that the U.S. pioneered better than the U.S. itself. American companies should increasingly look abroad for expansion opportunities, especially in economic sectors like energy and food security. By doing so, the U.S. can create strategic partnerships that go beyond charity, while also keeping our country competitive in the globalized world it created.
