Can Foreign Aid Really Buy Economic Growth in Poor and Corrupted Countries: A set of case studies Paraguay, Bolivia, Uruguay, Honduras, Nicaragua, San Salvador, Guatemala, Belize, Somalia and Kenya.

Theoretically the aim of international aid-financial assistance to underdeveloped countries is to accelerate their economic development up to a point where a satisfactory rate of growth can be achieved on a self-sustaining basis. (Rodan 1961) Recent findings demonstrated that when financial assistance is not fungible and poor countries have reasonable economic policies such as good fiscal, monetary and trade policies, all of them combined might boost economic growth. Researchers at the World Bank had established a positive relationship between foreign aid, economic policy and growth per capita – so why poorly countries such as Paraguay, Bolivia, Uruguay, San Salvador, Nicaragua, Belize, Honduras and Guatemala that shows opposite results in terms of economic policies are granted with financial assistance from international aid agencies and first world countries if they know that money would probably be mismanaged? What is really the main objective behind this financial assistance?