Role Of Aid Snd Multilateral Assistance Flashcards
What is bi-lateral aid
From one country to another
What is multi-lateral aid
Channeled through international bodies
What is project aid
Direct financing of projects for a donor country
What is technical assistance
Funding of expertise of various types
What is humanitarian aid
Emergency disaster relief, food aid, refugee relief and disaster preparedness
What are soft loans
A loan made to a country on a concessionary basis
What is tied aid
Projects tied to suppliers in donor country
What is debt relief
Cancellation, rescheduling, refinancing of a country’s external debts
Top 3 biggest recipients of foreign aid from the U.K.
Ethiopia
India
Pakistan
Can economic development take place without aid
Yes e.g. China and Vietnam have had sustained growth (no aid)
Can overseas aid spur economic development
Can enhance growth but the effects may not be seen as for many years
What is ‘smart aid’
Aid programmes that use experimentation and focus on bottom-up projects in order to increase the effectiveness of each £/€ given in aid
How can aid promote human development
- help overcomes the savings gap
- investment in infrastructure
- long term aid for health and education projects
- add to growth rate
Criticism of overseas aid
- poor governance - aid can be abused
- lack of transparency
- dependency culture
- distortion of market forces and loss of economic efficiency and risks of inflation
What does Tarp argue
That over the last 30 years, overseas aid has had a positive effect on growth and development
