Please enable JavaScript.
Coggle requires JavaScript to display documents.
Foreign Aid and Development (Types of Aid (Development Aid (Tied aid…
Foreign Aid and Development
Used to fill the savings gap in less economically developed countries. To promote ecnomic development.
Types of Aid
Humanitarian Aid
Food aid
Used to provide aid, to malnourished countries
Medical aid
Used to provide medicine during outbreaks/epidemics
Emeregency aid
Used during natural disasters, wars etc.
Development Aid
Tied aid
Money that must be spent on products from the donors country
Project Aid
promoted by the IMF, money for projects usually infrastructure
Commodity aid
Aid in covering the costs of basic commodities that are needed in the economy
Long term loans
Long term loans with usually a low interest rate
Technical assistance aid
Forms of aid
Official
From a government, ODA
Unofficial
From an NGO, Oxfam
Evaluation
Pros
Break poverty gap
Advancement of technology
Job opportunities
Healthcare improvements
Helps government budget
Cons
Often corruption
Loans and tied aid can lead to debt
Lower equality, worsening GINI
Flight of Capital
Wrong use of aid, e.g expensive machinery that the country cannot repair or use effectively