AidIB SL

Politics Of Aid

• Many people often ask why we don't simply give these poor countries more money in aid payments.

• The reality is not as simple. • Firstly, it is difficult to make sure that the

money is going to the needy not the corrupt. • Alternatively, if we were to provide food aid,

we may jeopardise local market stalls and farmers who have to sell their food.

3 Types Of Aid

• A country can give directly to another (Bilateral Aid).

• International organisations like the World Bank give to several countries (Multi-Lateral Aid).

• Non-Governmental Organisations (NGO’s) = Charities. These try to direct the money generated by charity at the needs of the poor, local communities or environment.

Bilateral AidType of Aid: Advantages: Disadvantages:

Bilateral:

The recipient country can get a substantial sum of money to invest in their country.

Can be used to set up exploitative trade deals. For example the UK insists that several of the countries we give aid to purchase our arms.

Can set up advantages for the industries in both countries as the donor becomes a market place for products from the recipient.

Alternatively encouraging the developing country to purchase machinery creates future demand for spares or experts which the country would have to purchase from the donor.

Multi-Lateral AidType of Aid: Advantages: Disadvantages:

Multi-lateral:

Can lead to the establishment of stable industry. For example India's dairy industry that supplies most of the country was set up using powdered milk donations from the European Union.

Governments in some developing countries tamper with their indicators of development to make them appear poorer than they are so they receive extra aid payments.

Money can and has been used to improve schools, health care and the economy.

Projects encouraged are often inappropriate to the needs of the most needy e.g. a new international airport.

The amount of money is substantial and can be used to finance development the country could otherwise not afford.

Debt repayments can massively outweigh any aid received.

Donating food is not always a good idea. If you donate a substantial quantity of any food to a country you will massively reduce that foods market value which could destroy farming economies making the country even more dependant on aid.

Non-GovernmentalType of Aid: Advantages: Disadvantages:

Non-governmental:

More responsive to the immediate needs of the population. Work at a smaller scale using technology more appropriate to the skills and needs of the locals.

There are concerns about countries becoming too dependant on aid handouts rather than looking to establish their own economies.

Are very quick to response during times of crisis (e.g. Famine or natural disasters) getting aid quickly to many of the most needy.

Unless they can have a greater influence on the policy makers then they will only ever provide 'stop-gap' measures.

Good at setting up initiatives at local levels so that the community can develop their own industries - see 'Appropriate technology'.

Appropriate Technology

• Appropriate technology refers to the industries that have grown up (or are being encouraged) in developing world countries where local people use local materials and skills to make a product for local people.

• Examples include making roof tiles, cooking stoves and pots and, batik clothing.

• On occasion, the success of this local small-scale industry can be such that it is expanded and uses new machinery and technology.

• This is called intermediate technology.

Advantages

• The advantages of these two are that it is the local people who are making the decisions, benefiting from employment, purchasing cheap products that they actually need, they are using local resources and skills.

• If the machinery or tools of production break down they will be able to fix it.

• In addition, it is unlikely that they will have accrued much - if any - debt.

Fair Trade

• Over the past few years several trading partnerships have been established which promote fair trade with less developed countries.

• The "Fair Trade" organisation imports chocolate, tea, coffee, and gives the farmers/workers a much fairer price for their product.

• This is often more than double what they used to receive. • In other instances, shops have developed unique

relationships with villages in the less developed world selling local arts and crafts to a Western market and encouraging the development of appropriate and intermediate technology.

Look at the W/S...

1. Match the series of statements to either Short Term or Long Term Aid.

2. Create a table of advantages and disadvantages of Aid.