I belive directly providing anything needed for living is devastating for a country's ability to provide for itself. This applies for food, clothing, housing and so forth. Allow me to explain.
You are M'boga (Forgive the borderline racist stereotype name here, it is late and I cannot think of something better). You have a family of wife and five kids. You own a piece of land at the edge of your village. You are a farmer. You grow whatever you can, feed your family with that, and still have crops left to sell at the end of the month. You are poor, the people around you are poor, but everyone can afford the crops you sell.
One day, a big, white truck rolls into your village. White men in blue hats are driving it. You can read the side says U.N. The truck parks and starts unloading. Heavy sacks. The men in blue hats starts handing out the sacks. For free. They contain rice. You are overjoyed with yours and your entire village's new gift. You go home, cook a nice, big meal for everyone, because now you have both the crops you grow, AND free rice. You and your family are no longer hungry when you go to bed. For a while.
The white truck becomes a regular occurance. Once every week or so, it rolls in, gives free rice, and moves on. At first, this is a gift. But then you notice people in your village stop buying your crops. You get stuck with more than you need. The excess crops are left to rot, because what else to do with them? No one is buying, anyway. Soon, you realize you can live on free rice alone, too. It's free, it's edible, and it takes zero effort instead of you keeping your crops alive and well every day from sunrise to sunset.
You are M'boga. You have a family of wife and five kids. You own a piece of land at the edge of your village. You are without a job. Your fields lie barren, disused, since there is no longer a market. You can in no way sell your crops at a price lower than the free rice from the white truck and the blue hats.
Infrastructure, production equipment and medicine is great. But free food, free clothes, maybe also free housing is a plauge. It starves out the ones that make the clothes, that grow the food, and that builds the houses.
Can you give me a real life example of this happening today?