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Description
Flashcards by Georgia Davidson, updated more than 1 year ago
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Created by Georgia Davidson
almost 9 years ago
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| Question | Answer |
| Modernisation Theory | SUPPORT AID Argue the rich developed world could provide aid in the form of CAPITAL FLOWS of inward investment, therefore becoming a 'MOTOR OF DEVELOPMENT' according to ROSTOW. Rostow - aid is inward investment in promoting movement through stages. Promotes wealth that trickles down. Useful as he describes aid as a useful step towards growth. However, it could be argued Kleptocracy is at risk. Marxist criticise trickle down by saying the wealth actually stays with the rich and those in power. Dependency theory argues aid leads to a debt crisis and wealth does not trickle down. Sachs - believes aid solves key problems like measles, malaria and diarrhoea. But aid works best with trade. Useful as he recognises how aid especially with trade, can inject money into countries and can target specific issues. However, dependency theory sees trade unfairly benefitting developed nations - colonialism - coffee beans as an example. |
| Mod theory continued... | Easterley - aid should be focused and targeted at home. Go to a village and dig a well or put in solar panels is a useful technique as it avoids Kleptocracy. Recognises that small scale projects help to avoid kleptocracy and have tangible benefits for villages. However, whilst local projects can transform peoples lives, they have little effect on global equality. |
| Dependency Theory | Frank - argues aid is the third expression of neo-colonialism and leads to a debt crisis. He is useful in arguing that most aid comes in the form of loans which have to be paid back with interests that cause debt. However, modernisation theorists like Rostow argue aid stimulates jobs, infrastructure and development. Hayter - argues aid as imperialism: the purpose of aid is to create jobs and export markets for the donor country. Useful as it shows trade doesn't always help developing countries and are used to help the West. Modernisation theorists like Norberg would challenge this arguing aid creates wages and wealth in the developing world. |
| Neo-liberal view | Moyo - In the 70's only 10% of Africa's population was in poverty and now it is 70% even after all this aid. Argues aid isn't the problem, it is corrupt leaders. Aid makes good leaders bad and bad leaders worse. No jobs come out of an aid model and so there's no point in paying for girls education if there are no jobs for them to do when they're educated. Highlights the extent of Kleptocracy and reliance on handouts. However, mod theory argues aid is a motor of development. Bauer - aid creates poverty as it promotes gov policies that lead their people to poverty, not benefitted them. Humanitarian aid casues dependency and helplessness. Good in highlighting Kleptocracy as an issues however it lacks compassion, some coutnries really need aid, especially in a crisis. Collier - 4 traps - 1 being the conflict trap - centered on the wards and conflict. 2nd being the bad governance trap - the role of corruption - holding back development. Aid holds back development. However, Collier criticised himself by saying that many in the bottom billion have been helped by aid. |
| Middle ground case for aid | They believe that aid can work but is often inappropriate or inefficient. Aid is unwise when: -supports corrupt governments (Kleptocracy) -used for military purchases or to strengthen armed forces |
| The Debt Crisis | Susan George - talks of debt boomerang 1. environment - people in debt forced to exploit natural resources 2. drugs - when countries in debt, illegal drug market expands 3. takes - customers in west pay the price of banks writing off bad debt 4. unemployment 5. migration 6. war Shows that debt in the developing countries is not just their problem but can effect developed world too. However, she over generalises points - doesn't offer a solution just states issues. |
| Moral hazard and vulture funds | Moral hazard - self inflicted problems - developing world most likely knew they couldn't pay off debt but still took aid anyway. Vulture funds - buy up the debt and then sue the country. |
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