Growth and Development Strategies Part 2 (Aid, etc)

Question 1

Foreign Aid

Answer 1

• Gifts or loans (below the market rate) made to developing countries from official or unofficial sources
• Does not include hard loans (loans made to developing countries at market rate)

Question 2

Humanitarian Aid

Answer 2

• To alleviate short term suffering
• Gifts and not repaid
• Grants, food and medical aid

Question 3

Development Aid

Answer 3

• Purpose to improve things in the long run
• Concessional/conditional in nature
• Concessional long term loans, project/programme aid, comodity aid (Bangladesh)

Question 4

Debt Relief

Answer 4

Paritla or total remission of foreign debt, especially those owed by low income countries

Question 5

Official Development Asissitance

Answer 5

Foreign financial assistance from donor government rather than NGOs