Aid
- Created by: Uttara.
- Created on: 08-03-18 13:53
View mindmap
- AID
- As defined by the OECD it is the assistance given to the developing nations to promote social welfare and economic development
- Non-monetary assistance such as technological and military help, advice and training
- Development finance guaranteeing the developing nation establishing trading links.
- Repayable loans such as lower interest rate
- Non-repayable grants
- Public Aid
- Bilateral Aid
- Aid given directly by the government. The ACBO believes that the main purpose is to encourage sustainable economic growth in developing countries.
- Multilateral Aid
- Aid channeled through international agencies such as the World Bank.
- Bilateral Aid
- Private Aid
- Unofficial assistance ranging from some specific targeted projects acting as channels for private institutions and government mainly donating 'Humanitarian Aid'
- Advantages
- Helps to develop economic infrastructures like sanitation and waste disposal.
- Reduced diseases such as Polio and eradicated smallpox.
- Reconstruction projects promoted development with following conflicts
- Disadvantages
- Exploitation
- Relation with the dependency theory where the developing nations are locked into a cycle of economic development mainly benefiting the donor country.
- Effectiveness
- Relating whether aid is the best way to promote political and economic development since whether aid will stimulate economic growth will depend on the political situation
- Inefficiency
- The argument of 'Trade rather than aid' represents to be cost effective to the problems of development,dependency and industrialisation.
- "Trade as aid"
- Since the ruling class had been consolidate power base through things like corruption. The meaning of 'aid' changed by promoting trade and self development.
- The developing countries hence has been helped in global markets solving the problem of 'underdevelopment'
- Promotes long term, self sustaining,economic stability and progression.
- "Trade as aid"
- The argument of 'Trade rather than aid' represents to be cost effective to the problems of development,dependency and industrialisation.
- Exploitation
- As defined by the OECD it is the assistance given to the developing nations to promote social welfare and economic development
- Ideology
- Argument referring that financial organisations (World Bank) provide aid to developing nations as an ideological agenda
- Neo-liberal approach
- Argues the long -term sustainable development through free-market trading policies between nations.
- These policies are based on the fundamental policies
- Trade Liberalisation
- Competition
- Effective way to encourage development through new cost effective methods of producing goods. Some abandoned protection policies include:
- State subsidies to inefficient industries.
- High taxes on goods
- Preventing access to developed markets
- Effective way to encourage development through new cost effective methods of producing goods. Some abandoned protection policies include:
- State ownership and control
- People should be allowed to keep as much of their earned income as possible providing individual and structural incentives for business to innovate and invest.
- Competitive business practices should not over regulate business behaviour. Since business discipline comes from the need to be competitive in free markets.
Similar Sociology resources:
Teacher recommended
Comments
No comments have yet been made