Fairtrade and Aid Flashcards
What is aid
It is when a country donates physcial resources to help develop the lives of people. In the form of money or physical resources like food.
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What are the 6 types of aid explain each
Short term aid-is used in emergencies to give to countries facing war or natural disasters
Long term aid -Sustainable aid seeks to improve the lives of people now and set them up for the future.
Tied aid-This money that has been given to a country has to be spent on the other countries resources only
Voluntary aid- is country’s giving aid to the countries in need.
Multilateral aid - multiple countries give money to an orginisation who distributes the money fairly.
Bilateral aid- is from one country to the other
How can aid reduce the development gap
Aid that is long term and freely given can truly reduce the gap. As corrupt goverments could use the money for the other purposes.
How much money does the UK spend on aid
0.7% of its GDP
What is Goat Aid and explain it
-Goat aid is run by a company Oxfam
-People donate to send Goats to poor countries in Asia and Africa
-These goats provide families with essential nutirents in meat and dairy.
-These goats can be sold and their products can which allows the family to make a stable living.
-With this money a positive multiplier effect can occur.
-Their children can go to school to get good jobs
-They will pay taxes which helps the goverment
-The goverment can use that money to help others that need it in poverty
What is intermediate technology
This technology is very simple to fix and use so an example. Instead of using tractors they could use spades as they are easy to fix and easy to use.
What are tariffs and give an example
Tariff are extra taxes that have to be paid by the country exporting. Ghana has a 15% tariff whilst selling chocloate bars to the EU but not cocoa beans. So they cant make a chocolate company
What are quotas and give an example
These limit the amount of raw products that can be sold to a country. Ghana has a limit on how much cocoa beans they can sell to the EU.
What is free trade and why is is disliked
Free trade gets rid of tariffs so allows poorer countries to enter the trade market. Allows countries to sell more.
HICS do not like this as it means they have more competition.
What is fairtrade
Fairtrade allows groups of farmers to sell and and get the money they deserve. They all have the same price so they cant be negotiated with.
The famer must farm in an ecofrinedly way .
What is debt relief
Allows LICS deep in debt to stop paying and use money to better their resources reducing the development gap.
