aid and debt

Question 1

define bilateral aid

Answer 1

governments in developed countries giving aid to governments in developing countries, also known as m official development assistance

Question 2

stat example of bilateral aid(ukraine)

Answer 2

over $660 million in bilateral assistance to ukraine from uk since start of invasion

Question 3

define multilateral aid

Answer 3

governments donate capital to multilateral agenies such as the world bank, imf and eu

Question 4

define emergency aid

Answer 4

aid given in response to national disaster, humanitarian crisis or conflict, in uk coordinated by disaster emergency committee (DEC)

Question 5

what was the issue of emergency aid found in a oxfam survey

Answer 5

aid had tended to got to business and land owners, increasing divide between the in and poor

Question 6

define commercial lending

Answer 6

commercial banks lend to countries at commercial rates of interest

Question 7

what is the 0.7% target

Answer 7

in 1969 the UN and its member countries declared that industrialised countries would give 0.7% of there GDP in aid.

Question 8

which countries reached the 0.7% target in2014(5)

Answer 8

sweden, luxembourg, norway, Denmark, uk

Question 9

give an example of commercial lending

Answer 9

lloyds lent 165% of its capital by 1984
2007 $8228 million was transferred from the uk to developing countries but in 2008 this went down to just over $1229 million

Question 10

define NGO

Answer 10

national governmental organisations

Question 11

examples of NGOS

Answer 11

oxfam, action aid, save the children

Question 12

what is the role of NGOS

Answer 12

charitable organisations which raise money via public donations , some receive government funding

Question 13

who argues aid is benifical

Answer 13

NGOS, modernisation

Question 14

how do NGOS Argue that aid is beneficial

Answer 14

Argue, it has a crucial role to play in development. However, it needs to be “people centred” , small-scale an appropriate and also focus on the needs of the people rather than large scale aid projects

Question 15

How dose modernisation argue aid as beneficial

Answer 15

say that aid is crucial for “take off”. countries were advised to spend aid money on western technology and experts to improve agriculture and speed up industrialisation . aid is also said to help change values e.g. meritocratic education systems. money would ”trickle down” to the poorest but start with the elites in developing countries

Question 16

who argues against aid

Answer 16

neo liberalists, dependency theorists

Question 17

how do neoliberalisms argue aid as “dependency”

Answer 17

low rates of capital in LEDCS due to failure of welll they to dave, therefore aid subsides the expenditure of the wealthy.
aid has no clear impact on poverty, health and mortality rates and i actually supports inefficiency and irresponsible attitude.

Question 18

neo liberalist bauer(1991) argument against aid

Answer 18

economic achievement depends on peoples attitudes and motivation. another argument is that industrialised nations developed without aid

Question 19

how can aid be described as inefficient and inappropriate

Answer 19

goes to a variety of different places, not simply poor countries.. aid is often inappropriate-out of date food, drugs ect..
aid often rakes a long time to arrive, if at alll
aid is offered on the base of privatisation, there are too many argue aid organisations operating

Question 20

aid as imperialism- dependancy (hayter)

Answer 20

aid is the “smooth face of imperialism”. MEDCS continue the domination of LEDCS through the giving or withholding of aid. dependency on foreign investment is created.
MEDCS have political and economic goals for the giving of aid
TNCS gain from aid programmes in developing countries

Question 21

what was the debt crisis

Answer 21

between 1987/2000 every $1 given to sub-saharan africa in aid, $1.10 was paid back in debt

Question 22

what caused the debt crisis

Answer 22

the transfer of debt from colonial powers to newley independent states, left a burden of debt before economies could become strong, in addition there were high levels of interest on high levels of debt

Question 23

what’s the impact of debt

Answer 23

debt repayments mean less money can be spent on development and the basic infrastructure of the country, health , education and services

Question 24

examples of the impact of debt

Answer 24

Zambia 2004- paid more in debt to imf than its entire education budget
Malawi spends more of debt than health, despite 1in7 Malawians being HIV positive

Question 25

what does dependancy theory argue the debt crisis was brought about by

Answer 25

-newly independent countries being dependant on cash crops&the failure of free marker policies(falling prices of cash crops)
-rising prices of commodities such s oil&rising interest rates
-inappropriate spending in LEDCS scoured by the west eg”use aid money on our technology”
-corrupt elites pilfering money

Question 26

susan george “the debt boomerang” 1992

Answer 26

there are six ways in which developing world debt impacts us all:
-environment
-unemployment
-drugs
-immigration
-taxes
-conflict

Question 27

How does debt impact the environment?

Answer 27

People and countries exploit natural resources in the least profitable and sustainable way. Increasing global warming and loss of biodiversity

Question 28

How does Debt cause unemployment?

Answer 28

Exports to LEDCs would be higher if it wasn’t for large debts. loss of jobs due to “lost exports”

Question 29

How does debt lead the drug problems?

Answer 29

Legal drugs are a major source of income in heavily indebted countries. E.g. Colombia and Peru

Social and economic cost of illegal drugs in north are high(est$60billion in US)

Question 30

How debt lead to immigration problems?

Answer 30

People will flee poverty and move towards wealthy countries. Refugee numbers increased due to the unrest&conflict caused by poverty.

Question 31

How does debt affect taxes?

Answer 31

Developed countries, governments use taxpayers money to buy allowed banks that lend money to poor countries. Governments picked up the banks, bad debts.

Question 32

How does debt effect conflict?

Answer 32

debt creates social unrest and war, conflict emerges over lack of resources, creates refugees in demands action from developed world

Question 33

What are SAPs

Answer 33

Structural, adjustment plans

Question 34

What’s the aim of SAPs

Answer 34

IMF and World Bank boat plans to rebalance countries economies to help them out of debt. These loans were tied to government spending pounds.
They were essentially a “neoliberal” approach to economic development, meaning privatisation, opening markets And cutting back on government spending(Reduction in money for education, health and welfare )

Question 35

What do the Jubilee debt campaign argue?

Answer 35

-That much of this debt relief is merely a continuation of tie-aid(aid with conditions).
-They cite the neoliberal agenda behind the IMF, as a key indicator of this to get debt. Relief from IMF countries must meet 30 conditions.

Question 36

What is the HIPC?

Answer 36

Heavily indebted poor countries initiative,

Set up by the IMF and World Bank in 1996

Question 37

What are some problems with the HIPC?

Answer 37

There are many criticisms of this initiative
- took too long over six years
-include a few countries
-are very stringent rules for countries to stick to for years before completion.

Question 38

What are vulture funds?

Answer 38

This is where countries sell debt owed to them by other countries to private firms as part of debt write-off plan.
These firms purchase the debt with the sole intention of recouping the money from LED seas to create profit for their investors.

Question 39

What’s an example of vulture funds

Answer 39

Zambia borrowed money from Romania for agricultural equipment in 1979 by the 1900s. It could not repay the debt so it now negotiated with Romania to settle the debt for 3 million
donegal international purchased the debt from Romania for 4 million and sued Zambia for 55 million (all costs and interest on the original loan ).
-a court ruled Zambia had to pay donegal international 15.5 million.