2643729
Description
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
- 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
- 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
- aid given directly by 1 country to another
- Multilateral Aid
- 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)
- 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
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