Development Gap - Reducing Global Inequalities - Aid Flashcards
What is aid?
The transfer of goods, money and expertise from one country (the donor) to another (the recipient) to imprve the quiality of life of the reciever
Why do LEDC’s need aid?
- They made have large trade deficits and they need to borrow money to buy goods from MEDC’s
- Aid is needed to improve standards of living (eg borrowing money to construct HEP dams)
- Many LEDC’s are prone to natural disasters and aid is needed for a short time to alleviate (make less severe) suffering
- Development indicators provide the evidence for a world in which there are great gaps between the rich and the poor - making aid necessary
What are the two main sources of aid from donor countries? And what provides the money for this aid?
- The government - paid for by taxes
- NGO’s (non-governmental organisations) - paid for by voluntary donations
What are the 2 ways in which donor governments can give aid to recipient countries?
Directly to the recipient - aka bileteral aid
Indirectly through an international organisation (eg UN) that distributes the aid - aka multilateral aid
What does it mean if bilateral aid is ‘tied’?
It means it is given with a condition that the recipient country has to buy the goods and services it needs from the donor country
This helps the economy of the donor country, however if the goods and services are expensive in the donor country; the aid doesn’t go as far as it would if the goods and services were bought elsewhere
Disadvantages of bilateral aid?
- Goods recieved may not be best suited to the real needs of people
- Often large scale project eg dams which are low in valie for ordinary people
- A trade promotion of finding a new over-seas market for the donor
Advantages of Bilateral aid?
Trading relationships are established
What is multilateral aid?
Richer countries give money to an international organisation (eg World Bank, International Monetary fund, UN)
They then redistribute it ot LEDC’s in need to fund development projects
Advantages of multilateral aid?
- Pays more attention to development need
- Targets specific projects
Disadvantages of miltilateral aid?
The organisations are huge and slow to react to peoples changing needs
How can aid be classed as?
Short term or long term
What is short-term aid?
Money or resources to help recipient countries cope with emergencies (eg earthquakes, war)
→ Attempts to relieve suffering
Advantages of short term aid?
Provides a life line when most needed
Aids is appropriate to immidiate needs
Disadvantages of short-term aid?
Aid only last as long as the emergency exists
What is long-term aid?
Money or resources to help recipient countries become more developed (eg to improve heathcare)
→ improves standard of living and quality of life
→ increasingly self-sufficient and independant so that the need for aid is reduced