4.3 - Overseas Aid Flashcards
What are the 8 types of overseas aid?
Bi-Lateral
Multi-Lateral
Project
Technical Assistance
Humanitarian
Soft Loans
Tied
Debt Relief
What are the benefits of overseas aid?
Overcome savings gap
Infrastructure investment
Health + education
Strengthens social institutions
What are the drawbacks of overseas aid?
Poor governance
Lack of transparency
Dependency culture
May distort market forces
What can be done to improve the effectiveness of aid?
Specific targeting
Conditional aid
What is Bi-Lateral aid?
Aid targeted from one nation to another
What is multi-lateral aid?
Aid channeled through international bodies
UN etc
What is Project Aid?
Direct financing of projects by donor state
What is Technical Assistance?
Funding of expertise
E.g., Medicine, engineering
What is Humanitarian Aid?
Emergency disaster relief
Food aid
Refugee relief
Disaster preparedness
What are soft loans?
Loan made on concessionary basis that offers low interest
What is tied aid?
Projects/funding tied to a supplier in donor state
What is debt relief?
Cancellation/rescheduling/refinancing a nations external debt
What is a concessional loan?
Loan offered on terms more favourable than market conditions
