AID

bella.calonje
Mind Map by bella.calonje, updated more than 1 year ago
bella.calonje
Created by bella.calonje almost 6 years ago
32
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ib economics (Development Economics ) Mind Map on AID, created by bella.calonje on 03/31/2014.
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Resource summary

AID
1 Humanitarian aid
1.1 Political reasons
1.2 Food Aid Issues
1.2.1 may force down domestic food prices and affect domestic farmers
1.3 Risk of continued dependency on Aid
1.3.1 little incentive to be innovative
2 Tied Aid
2.1 Not effective
2.1.1 Does not create employment or increased output
2.1.2 imports may replace domestic products
2.1.3 domestic country has to buy goods and service from donor country
3 too focused on the modern sector
3.1 may cause a greater gap in incomes and living standards between sectors
4 Aid will only be effective if the country agrees to adopt certain economic policies
4.1 Policies that emphasise the free market principles of liberalisation, deregulation and privatisation to encourage economic growth
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