Trade Vs Aid

Question 1

What is trade

Answer 1

The exchange of goods or services. Increasing trade within a developing country and between it and other countries promotes development

Question 2

What are the problems with trade as a route to development?

Answer 2

• Less developed countries often can’t compete in global market, don’t have money to invest in technological developments
• Other problems eg HIV /AIDS means countries struggle to trade in global market
• Trade can have negative social impacts - low prices - wage and conditions low quality of life bad

Question 3

3 main systems through which aid can be supplied

Answer 3

Bilateral aid
Multilateral aid
Non governmental organisations

Question 4

What is bilateral aid

Answer 4

Given by government of one country to another

Question 5

What is multilateral aid

Answer 5

Given by governments to international organisations which use money to assist in poorer countries organisations include the world bank and UNESCO

Question 6

What are non governmental organisations

Answer 6

Distribute aid in variety of ways many are charities eg oxfam which raise money for development projects ensuring aid is directed at people who need it most

Question 7

Way said can be distributed

Answer 7

Short term aid
Long term development aid
- can be trickle down aid (
- bottom up aid - funded by NGOs

Question 8

3 main challenges in Bangladesh

Answer 8

• Number of teachers needs to rise from 350000 in 2005 to 815000 by 2015
• Number of doctors will have to double, nurses , midwives
• Surface water supplies are infected - 20000 die each yr from diarrhoea

Question 9

Aid in Bangladesh

Answer 9

Needs us $75 billion per yr

U.K. Department for international development provides relief and development aid

Question 10

Aims in Bangladesh

Answer 10

• to be stable
• eradicate seasonal hunger
• reduce vulnerability to climate change
• increase jobs and incomes
• Improve basic social services for the poor

Question 11

How trade Is helping in Bangladesh (successes)

Answer 11

• Trade liberalisation Enabling it to develop quickly from a low base
• Setting up export processing zones giving big reductions in taxes and in bureaucracy for foreign direct investment
• Encouraging FDI in private power generation

Question 12

Limitations of trade in Bangladesh

Answer 12

Main trade union organisation in USA has asked government to deny Bangladesh preferential access to US markets as Bangladesh won’t allow trade unions to operate in EPZs so workers rights issues

Question 13

How aid is helping Bangladesh

Answer 13

UNDP and uk department for international development help
Support poverty reduction strategies
- give micro finance
- help urban poor create healthy living environments
- help locals acquire skills

Question 14

How has aid helped Bangladesh in the last 3 years ?

Answer 14

£350 million to lift 1/2 million out of extreme poverty
Raised >20000 flood prone homes in char islands
Construct 14000 classrooms
Recruit 12000 new teachers
Basic education 4.5 million

Question 15

Limitations of aid in Bangladesh

Answer 15

Needs significant increase in effectiveness of external aid

Needs to build on joint strategy approach developed by 4 largest donors Japan ,Asian development bank, world bank and uk