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Aid - Coggle Diagram
Aid
OED: promotes economic growth and welfare in the developing countries and it is concessional
grant
supply of food or services
loan at lower interest rates
debt relief
Modernization theory in action
on public health
on economic growth
on good governance
on democracy
The political effects of aid
aid creates problems for coordination
aid creates dependancy
aid creates corruption
aid reduces local political ownership and accountability
anti-politics machine
political motive for aid
altrusim
voters demand zero corruption
preventing spillovers
geopolitical and soft power
Conditionalities
the bridge must be built
where it must be built
the company building it needs to be based in the donor country = tied aid
Aid can be used to
build in frastucture
provide food
support a rural development projects
Logics of aid
saves lives
aids fianancing development
developing countires are too poor to finance their own development
private markets cannot finance such risky investments
the costs to developed countries are small
Lever for governance reform
developing countires do not need more resources - they waste what they already have (resource course)
investment requires better governance
Donor dilemmas
where to send aid?
needs vs ability
financing development or incentivising better governanance
conditions corruption limitation or maximasing local ownership