Foreign aid is a form of neo-colonialism, as the economically wealthier countries can exploit the developing countries under the cloak of aid. Examine.

1. Opaque nature of funding leading to corruption and lack of public welfare (Eg) in Nigeria.
2. Global manipulation leading to promotion of self interest over collective interest. (Eg) BRI and debt diplomacy → Srilanka to Montenegro having Crisis.
3. Siphoning of funds back to own country by adopting line of credit approach
4. IMF conditionality impinging on sovereignty of nations.

However, international funds also help to promote development of developing countries —

1. Global climate fund for funding green jobs in developing countries.
2. Aids by USA to various organizations for food security (Eg: Funding of World Food Programme → empathetic
3. Non monetary aid, like India's vaccine diplomacy benefiting Africa and other nations during COVID → leadership shown.