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A country that receives aid: Ghana, Africa
Ghana is an LEDC located in West Africa. Compared to Africa, Ghana isn't particularly poor. Ghana receives aid from a
variety of different sources and types
Nature of Aid
In 2010 Ghana received in total US$ 650 million. This was long term
development aid only. Ghana received no short term aid (food aid or
emergency aid). Broadly speaking the aid can be split down into two types:
multilateral (several countries) or bilateral (one country) aid from foreign
governments and non-governmental aid from organisations and charities.
Large scale schemes rely on multilateral and bilateral aid, which is often tied. Ghana received US$200 million
multilateral and bilateral aid from the World Bank and France & Italy to fund the Volta Dam, a huge hydroelectric
power station, in the form of grants and low interest loans.
Ghana also received voluntary aid from non-governmental organisations such as Water Aid, Action Aid and CAFOD.
This aid is small scale self-help schemes that provide intermediate
technology, wells, skills training etc.
Impact of Aid
The aid was tied therefore costs of development were as much as 50%
higher than necessary. Ghana had to buy from expensive companies in
places such as Italy. 88% of the money leaked back to MEDCs so Ghana
didn't benefit much.
Government officials benefited as it made the government look prestigious and active so the country is more likely
to receive aid in the future. Local industrialists may benefit from the jobs created directly within the dam. This creates
employment in the area which raises standard of living, however many jobs were only short term as they were
building jobs. Local companies receive cheaper electricity this means they can obtain greater profits so can expand
therefore creating even more jobs which improves employment opportunities within the area.
However the local farming population won't benefit and may have had to move away to allow space for the dam to
be built. Also the dam may stop nutrients in the water supply reaching places further downstream which means the
land becomes less arable which can make it difficult to farm.
Voluntary aid provided intermediate technology such as borewells. Bore-wells improve access to safe drinking water
and this decreases waterborne diseases thus improving the health of local people. Bore-wells access groundwater
so if there is ever a drought; people still have access to deep
underground supplies of water which can save lives.
Other types of technology included bikes. Bikes are sustainable forms
of transport suitable to health workers, teachers etc. that are easy and
inexpensive to use. Many people had to walk from one place to
another which took a long time, using a bike means that people can
travel quicker and therefore have more time to see more people. This
is especially important for health workers who have a lot of people to
Many people relied on agriculture which is timely and laborious.
Intermediate technology supplied by aid such as rakes makes the work
less hard. The technology is also suitable to the population as they have little skills so cannot work heavy machinery
and they cannot afford the energy or fuel to power machinery.
Local people have very little skills so training schemes are set up which teach people how to build etc. which
increases job prospects and also allows for locals to help each other and themselves by building their own wells,
buildings and so on without having to wait or pay for someone else to do it.
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Explain why this aid was necessary
Ghana is an LEDC so lacks funds to develop the country. Also, banks only lend to countries that can pay it back. LEDCs
are unlikely to have the money to pay it back so must rely on aid instead.
Ghana needed aid to improve its energy supply. It wanted energy to supply to its businesses and industry. The
hydroelectric dam provides cheap electricity.…read more