aid

Question 1

what is the cause of the original debt crisis in developing counties?

Answer 1

• the transfer of debt from colonial powers to newly independent states left a burden of debt before new economies could become strong
• commercial lending by banks
• high levels of interest (on high levels of debt)
• prices of cash crops dramatically decreased over time

Question 3

bilateral aid

Answer 3

• assistance provided directly from one country to another
• usually aims to furthering mutual interests

Question 4

multilateral aid

Answer 4

• involves contributions from muliple countries or international organisations pooled together to adress global issues, such as poverty alleviation and healthcare