Types Of Aid Flashcards
What is relief aid?
Involves supply of food, water, shelter, medicines and medical assistance to people in distress or immediate threat.
What is development aid?
Assistance to support economic or social development that will reduce poverty and improve qol in the long term, rather than just alleviating an immediate crisis. It can include grants, low-interest loans and debt relief. Grants and loans can be for specific projects such as schools, hospitals, roads etc.
What is tied aid?
Aid given on the condition that the receiving country spends money on goods or services in the donor country.
What is bilateral aid?
Assistance given by one country’s government directly to another country’s government. This is usually the largest share of a country’s aid budget. Can be influenced politically.
What is multilateral aid?
Assistance provided by governments of a country to an international organisation, such as the UN or World Bank, who then allocate the funds to alleviate poverty and promote development in LICs.
Pros and cons of tied aid?
+ Improves political relationships
+ Allows donor country to benefit
- Aid not being targeted for best cause eg reducing poverty
- Receiving country could end up in more debt (Malaysia eg)
Pros and cons of multilateral aid?
+ International organisations often more knowledgable, such as WHO, can allocate to countries who need most.
+ Avoids political bias
- Countries who give to organisations may not agree where their aid is going to.
- Aid may go to same countries/areas, some areas don’t receive aid.
- Often top-down aid.
Pros and cons of bilateral aid?
+ Country knows exactly where it’s going and can choose who to help.
+ Can improve political relationships.
- Political influences, such as lots of current UK aid going to Ukraine, other countries missing out.
- Governments of countries may not be as knowledgable on where to allocate aid.
