Development Aid

Development
Aid
What is Aid
Aid is given by donor countries to recipient countries to help their
development,or help them recover from a natural disaster.
 The aid takes many forms and can be given on a large scale or
small scale. Large scale aid is called top-down aid as it is usually
given to the government of the developing country so that they
can spend it on the projects that they need.
 Unfortunately this can lead to the mis-use of aid money by
unscrupulous governments. Aid from developing country
governments tends to be given as top-down aid.
 Small scale aid projects are called bottom-up aid. These target the
people most in need of the aid and help them directly, without any
government interference. Aid from charities tends to be bottom-up
aid.
 There are five main types of aid that can be given to developing
countries
Conditional Aid (1)
Conditional aid is given by a donor country (MEDC)
to a receptor country (LEDC) to finance projects in
that country. In return the receptor country usually
has to agree to buy other products from the from the
donor country
A good example was the building of the Aswan
dam in Egypt. The Russians gave the Egyptians
money to help build the dam, in return for Egypt
allowing them unlimited access to its airfields.
The project began in the 1950's and General Nassua
eventually told the Russians to leave after the six day
war in 1967.
Conditional Aid (2)
In 1994 the British Government came under fire
as details of a supposed conditional aid
package reached the public. The scheme
involved Britain giving £234 million worth of aid
to help the Malaysian Government build their
Pergauhydro-electric dam scheme.
However it then emerged that this aid was
linked to £1.3 billion of British defence contracts
with Malaysia. Similar claims were made about
defence contracts and aid money given to
Indonesia.
Long Term Aid
 Long-term Aid: Long term aid aims to help the
country develop in the future, by introducing
schemes to help things like health care, education
and food production. Many of the NGO's are
involved in these long term schemes, which can
be large scale or small scale projects.
 The main aim of the schemes is to introduce ideas
and thinking that can be easily sustained by the
local community, with only the help of the NGO to
set them up in the first place.
Many of the schemes introduced by Comic Relief
into countries like Burkina Faso and Ethiopia are
examples of long term sustainable aid.
Short Term Aid
 Short-term Aid: Also known as emergency aid, this
is the aid that you will have seen on the news.
Charities and governments send short term aid
after a natural disaster to help the country
recover.
Two recent examples include the famines in Africa
for which food, medicine and shelters were quickly
sent over to countries such as Ethiopia and Sudan.
Then there were the terrible floods in Mozambique in
early 2000, which led to food, medicine, clothes and
shelters being sent over, as well as South African
helicopters being used to pluck people from the
flood waters.
Multilateral Aid
 Multilateral Aid: This form of aid involves the
developed countries giving money to central
international organisations such as the World Bank
and the World Health Organisation. These then
decide where and when the money is going to be
spent. In the case of the World Bank this money is
still a loan, that will need to be paid back, whilst
other organisations act more like charities.
 It is this form of aid that the Brandt Report
suggested each country should give 0.7% of its
GNP towards. However most countries do not get
close to reaching that target.
Bilateral Aid & Tied Aid
 Has the same define as the Conditional
Aids
 See Conditional Aid
 Note: Bilateral aid, from one country to
another, is frequently criticised because it
often seems to serve the interests of the
donor nation as much as, if not more
than, the country receiving aid.
(Pencitraan doang)
Non Governmental
Organisation
 The term non-governmental organisation (NGO) came into
common usage in 1945 when the United Nations used it in
its Charter to distinguish between intergovernmental
agencies and international private organisations (NGOs).
 Some 25,000 organisations, covering a huge variety of
objectives, now qualify as international NGOs. The
influence of NGOs on international policy has increased
markedly in the last few decades. They have successfully
promoted:
• new environmental agreements
• women’s rights
• arms control and disarmament measures
• the rights of children, the disabled, the poor and indigenous
peoples.
Where do NGOs get their
money from?
NGOs are usually financed from the
following sources:
 membership dues – the traditional source
of funding
 government grants
 retail operations, eg charity shops
 private foundations, corporations and
wealthy individuals.
Types Advantages: Disadvantages:
The recipient country falls further
The recipient country gets the
into debt to the donor country.
Advantage & Disadvantage
money it needs for projects that
will benefit the country. The
The projects are often large
scale, where it would actually
donor country keeps an
Conditional Aid: benefit the ordinary people more
"economic colonial" hold over
by using small scale community
the recipient country. The
schemes. The projects are often
donor country increases its
not appropriate for the recipient
trade and economic influence.
country.
Theoretically the aid comes
The aid is still a loan that must be
with no ties to the donor
paid back, along with the interest
country as it is allocated by
charges on it. The aid often does
Multilateral Aid: international organisations. The
not reach the people it was
real needs of the recipient
meant for as the government
country are focussed on for the
uses it for other purposes.
aid to be targeted towards.
They work on smaller
community-based projects that They rely on the generosity of the
help the people who most public as well as donations from
NGO’s(charities): need it. There are no political governments for their funds. This
ties. The projects use means that their cash flow isn?t
technology appropriate to the always guaranteed.
area that they are in.
Disadvantages
 The main disadvantage of all forms of aid is
that many developing countries have
become dependent upon it for their survival.
 This has led to some developing countries
calling aid an "economic colonialism" where
the developed countries have a tight hold
over the development of the developing
countries. The massive debts that many of
them have only increase this dependency on
aid form the developed countries.

Development Aid

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