Chapter 20.6 Flashcards
Foreign aid
The transfer of funds or goods and services to developing countries with the main objective of bringing improvements in their economic, social or political conditions
Types of foreign aid
Humanitarian aid
Development aid
Humanitarian aid
Aid extended in regions where there are emergencies caused by violent conflicts or natural disasters
Development aid
Aid intended to help developing countries achieve their economic growth and development objectives
Official Development Assistance (ODA)
Aid from government funds
Donor motives for ODA
Political and strategical motives
Economic motives
Humanitarian and moral motives
Non-governmental Organizations (NGOs)
Private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development
Advantages of ODA
Poverty cycle
Provision of basic services
Improved income distribution
Economic growth
Sustainable development goals
Debt trap and relief
Factors that limit effectiveness of ODA
Tied aid
Conditional aid
Volatility and unpredictability
Uncoordinated donors
May substitute for rather than supplement domestic resources
May not reach those in need
May be associated with corruption
Quantity of aid and poverty alleviation
Advantages of NGOs
Strong anti-poverty orientation of activities
Working closely with project beneficiaries
Contributing to democratization, advocacy of raising public awareness and support
Offering expertise and advice
Ability to innovate in pursuit of solutions
Enjoying the trust of beneficiaries
Criticisms of NGOs
Small size and weakness of many NGOs
Possible loss of independence due to dependence on funding
May attract the best qualified personnel away from government
Challenge to state authority
