Mind Map by mikapolivotti, created over 10 years ago
Aid
Resource summary
Aid
Types of Aid
Multilateral Aid
occurs when countries pay money to an
international agency which then
distributes it to countries on the basis of
certain criterias
Tied Aid
This is aid w/ conditions attached(ex. there might be
requirements to buy goods from the donor country or the aid
might be given on condition that there are some economic
and political reforms
Bilateral Aid
aid given directly by 1 country to another
Arguments For
Providing funds for infrastructure - essential if the country is
to industrialize. Aid therefore will help to increase AD and
investment will have a multiplier effect on GDP. In turn, this
will help to promote sectorial development
The reduction of world inequality
Reduction in absolute poverty
Aid might contribute to increased globalization and trade,
both of which are frequently associated w/ growth &
development
Improving human capital through promotion of healthcare,
education, training and expertise In some countries, aid might
be used to help the prevention and treatment of AIDS Ex: the
training of teacher and doctors
Filling the Savings Gap experienced by many developing
countries (Harrod-Domar Model)