Aid Flashcards
4 advantages of aid
Supports agriculture
Provides medicines
Encourages development
Maximise rich natural resources
4 disadvantages of aid
Economic/political pressure
Overlook small farmers market
Benefit already wealthy employers
Development = inflation = poor more deprived
Bilateral aid
One country to another
Multilateral aid
Through international organisations
Project aid
Specific projects
Humanitarian aid
Emergency relief
Technical assistance
Funding of expertise of various types
Soft loans
Loans with a lower rate of interest
Tied aid
Projects tied to suppliers in the donor country
Debt relief
Cancelling/rescheduling debt
Long term development projects
Such investments can help agriculture, industry, energy supplies, infrastructure, education and medical facilities
Top down aid
A responsible body (internal or external) directs the operation from the top e.g. Dams
Bottom up schemes
Often funded by NGOs, working closely with local communities and using local ideas and knowledge to bring about change
Criticisms of aid
- not always reach those who need it
- lack infrastructure- makes it difficult to use aid effectively
- aid dependency
- often has strings attatchedb
What has the IMF recently introduced
Poverty reduction strategy papers
-describes the policies and programs a country will pursued over several years to promote growth and reduce poverty
