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Role of Aid on Influencing Development in LEDCs - Coggle Diagram
Role of
Aid
on
Influencing Development
in LEDCs
Bilateral
D: country giving directly to
the government of another country
ADVANTAGES
recipient country can get substantial
sum of money to invest in their country
can set up advantages for industries
in both countries as donor becomes
market place for products from recipient
DISADVANTAGES
used to set up exploitive
trade deals
E.g. UK insists several of countries
give aid to purchase our arms
encouraging developing countries
to purchase machinery creates
future demand for spares and experts
which country purchase from donor
Multi-lateral
D: aid that is given to several countries from
an international organisation (World Bank)
ADVANTAGES
can lead to establishment of
stable industry
E.g. India's dairy industry supplies
most of country set up using powdered
milk donations from EU
Money can and has been used
to improve schools, healthcare
and economy
amount of money substantial
and used to finance development
country otherwise not afford
DISADVANTAGES
governments in some developing countries
tamper with indicators of development +
make look poorer than are to receive
more aid payments
projects encourage often inappropriate
to needs of neediest
E.g. new international airport
debt payments massively
outweigh any aid received
donating food not always good idea
if donate substantial quantity of food,
massively reduce food market value
destroy farming economies
making country more dependent on aid
Non-Governmental
(NGOs)
D: refer to as charities. Direct money generated by charity at needs of poor,
local communities or environment
ADVANTAGES
more responsive to immediate
needs of population
work at smaller-scale using
technology more appropriate
to skills + needs of locals
quick response during times of crisis,
getting aid quickly to many of neediest
E.g. famine/natural disasters
good at setting up initiatives
at local levels so community
can develop own industries
DISADVANTAGES
concerns for countries becoming too dependent on aid handouts rather than looking to establish own economies
unless they can have greater influence
on the policy makers, then only ever provide
'stop-gap' measures
examples
- Oxfam,
Save The Children