Foreign aid’s theory is a controversial theory which demonstrates how foreign aid either help or dominate other poor countries. There are three distinguished theories regarding foreign aid. The first theory describes that the foreign aid system is not at all effective and has only caused problems to the poor countries. The second theory states the fact that the amount of aids given by the rich countries are too low to help in order to reduce poverty in the poorer countries. The last theory demonstrates the actual roles of the traps which are present in this system. The last theory is not much vocal about it (Edwards, 2014).