Impact of Foreign Aid on Poverty Reduction in Selected Urban Areas of Mogadishu, Somalia.

ABSTRACT 

Since there has been a lot of foreign aid to Somalia and most of this aid directed to urban population, poverty levels remain to be high. The research was based on a sample size of 242 respondents; the samples were randomly selected from Xamarwayne, Hodan and Wardhiigley. The sample age was between 5 up to above 65 years, 115 male and 127 Female. All the respondents were ethnic Somalis. The researcher was use both quantitative and qualitative approaches in data collection, however, quantitative method of data collection was dominate or was be largely used in the collection of data because it is more accurate in terms of data collection and yet again more reliable in terms of research results. The researcher used probability sampling method and in particular stratified sampling. In probability of being selected; divided the population into sub populations such that elements within these sub populations were homogeneous. Then selected a simple random sample independently from each sub population. Data was obtained using self-administered questionnaires containing indicators on each research question. Data obtained was presented and analyzed in tables and charts. Despite large amount of foreign Aid being channeled to these areas, the poverty levels are still generally high as compared to other cities in Africa. Motility rates are at 60%, Nutritional levels at 52%. though above average but they are still relatively low. School enrollment 38%, Years of schooling 43%. Most household rely on Dung, charcoal and wood for cooking 93%. Household with electricity 24%. More than one; phones 79%, Television I 5%. Radio 30% and Telephone I 5%. Urban areas of Mogadishu have been receiving foreign Aid on Large scale, yet there are minimal changes on the poverty index. Military Aid has been the most visible Aid playing a role in poverty reduction. Development Aid; which is expected to have a greater impact on poverty level, is not causing any meaningfully impact. Humanitarian Aid has played a considerable role hut it’s mainly upkeep and sustainability of lives, its impact on poverty index is minimal.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS

LIST OF TABLES vi~

LIST OF FIGURES ix

ABSTRACT

CHAPTER ONE 1

INTRODUCTION 1

1.1 Background of the study

I .1 .1 Historical perspective

1 .1 .2 Theoretical perspective 2

.1 .3 Conceptual Perspective 3

I . I .4 Contextual perspective 4

1 .2 Problem Statement 5

1 .3 Purpose of the study 6

1.4 Objectives of the study 6

1 .5 Research Questions 6

1.6 Scope of the study 6

1.6.1 Geographical scope 6

1.6.2 Time scope 7

1 .6.3 Content scope 7

1.7 Hypothesis 7

1.8 Significance of the study 7

CHAPTER TWOS 8

LITERATURE REVIEW 8

2.0 Introduction 8

2. 1 Theoretical Review 8

2.2 Conceptual Framework 9

2.3 Related literature 10

2.3.l Types of Foreign Aid .10

2.3.2 The Purpose of Foreign Aid 13

2.3.3 Utilization of Foreign Aid 14

2.3.4 Key Developments~ 15

CHAPTER THREE 19

METHODOLOGY 19

3.0 Introduction 19

3.1 Research design 19

3.2 Research population 19

3.3 Sample frame work 19

3.3.1 Sample size 19

3.3.3 Sample Procedure 20

3.4 Data collection methods 20

3.4. 1 Questionnaires 20

3.4.2 Interviews 20

3.5 Research procedure 20

3.6 Measuring the validity and reliability of the study 21

3.7 Data analysis 21

3.8 Ethical considerations 21

3.9 Limitations of the Study 22

CHAPTER FOUR 23

PRESENTATION, ANALYSIS AND INTERPRETATION 23

4.0 Introduction 23

4.1 Presentations, Analysis and Interpretations 23

CHAPTER FIVE 33

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS 33

5.0 Introduction 33

5.1 Discussions 33

5.2 Conclusions 35

5.3 Recommendations 35

REFERENCES 36

APPENDICES .38

APPENDIX I TRANSMITTAL LETTER FOR THE RESPONDENTS 38

APPENDIX II CLEARENCE FROM THE ETHICS COMMITTEE 39

APPENDIX III INFORMED CONSENT 40

APPENDIX IVA FACE SHEET: DEMOGRAPHIC CHARECTERI5TIC5 OF THE RESPONDENTS...4I

APPENDIX IVB QUESTIONNAIRE TO DETERMINE TYPES OF FOREIGN AID 42

APPENDIX IVC QUESTIONNAIRE TO DETERMINE UTILIZATION OF AID 44

APPENDIX IVD QUESTIONNAIRE TO DETERMINE EFFECT OF AID ON POVERTY INDEX. ...46

APPENDIX V REQUEST LETTER 48

APPENDIX VI RESEARCHER’S CURRICULUM VITAE 49