AID AND DEVELOPMENT

Question 1

What does aid refer to

Answer 1

Aid refers to financial grants and loans to developing countries such as medical supplies and military assistance

Question 2

Give two sources of aid

Answer 2

INGOS such as oxfam and Christian aid

Question 3

Outline the case FOR aid

Answer 3

The modernisation theory suggests that aid provision encourages development in helping countries modernise and that aid is crucial in stimulating the four motors of development (investment, education, mass media and urbanisation). Sachs claims that aid is a good gesture of philanthropy and be very effective if combined with good governance and and good economic policies.

Question 4

Outline the case AGAINST aid

Answer 4

Neo-Marxists claim that aid is imperialism (hayter) and is an expression of neo-colonialism. This is argued by frank who sees aid as sustaining underdevelopment as it equates to a spiralling debt crisis. Often, aid only goes to those countries who politically support the donor countries rather than those who need it.
Neo liberal claim that aid causes dependency. Moyo argues that midi directed aid, kleptocracy and over dependency on loans has caused for the 60% increase of people living in poverty in Africa from 1970 to present. Collier agrees with this and argues aid has been ineffective in changing the lives of the bottom billion.

Question 5

How does trade processes make countries in the south vulnerable

Answer 5

Often countries rely almost entirely on one crop or materia. This can leave countries very vulnerable due to:fluctuating prices, changing tastes and fashions in the north can effect demand, crops are vulnerable to severe weather conditions and diseases.