PowerPoint 7: What is
effective aid?
Aid is ...




Support
Goods
Services
Money
... given to those in need
Aid matching activity – types of aid
Long-term aid
Short-term aid
Emergency aid
Bilateral aid
Voluntary aid
Bottom-up development
Multilateral aid
Top-down development
Food aid
Tied aid
Sustainable development
Non-governmental organisation
Aid matching activity – answers
Money, food, goods
and services given at
times of dire need
Edible commodities
donated to needy
populations
Emergency aid
Food aid
Development that
meets the needs of the
people today without
harming the ability of
future generations to
meet their own needs
An independent
charitable
organisation that
provides aid
Aid that is given by a
number of countries
and organisations,
like the United
Nations and the
World Health
Organisation
Multilateral aid
Aid from one country
to another
Bilateral aid
Non-governmental
organisation
Sustainable
development
Aid that provides
support for a short
time, sometimes when
there is an immediate
need
Short-term aid
Foreign aid that must
be used in the donor
country to buy goods
and service from the
country giving the aid
Tied aid
Money collected from
the public (and
sometimes
governments) by nongovernmental
organisations
Voluntary aid
Development
projects that are
imposed in people
from ‘above’
Top-down
development
Aid that provides
support over a long
period of time to
make changes that
last
Long-term aid
Development projects
that start and work
from the ‘grass-roots’
level
Bottom-up
development
What people say about aid 1
‘Huge bureaucracies are financed (with the aid
money), corruption and complacency are promoted,
Africans are taught to be beggars and not to be
independent.’
James Shikwati a Kenyan economics expert
Source: Speigel Online International
‘Foreign aid might be defined as a transfer of money
from poor people in rich countries to rich people in
poor countries.’
Douglas Casey, Classmate of Bill Clinton at Georgetown
University
Source: http://thoughtsnquotes.blogspot.com/2009/04/sarcastic-quotes-foreign-aid.html
What people say about aid 2
‘In the 1990s dams were built on the Xeset River in the South of
Laos to provide electricity and promote economic development.
Aid to do this came from Sweden, Norway, the Asian
Development Bank and UNDP and China.’
‘On the Boloven Plateau (in Laos) … a Norwegian consulting
firm is benefiting from Norwegian “aid”, a Chinese construction
firm is benefiting from Chinese “aid”, and Lao villagers are left
to pay the costs of destroyed rivers and livelihoods.’
Chris Lang
‘We do not want them to build the dam. It will badly affect our
land and the environment. The official compensation will not be
adequate, but we dare not oppose government officials.’
Laos villager
Source: www.wrm.org.uy/bulletin/118/Laos.html
What people say about aid 3
‘One approach to a successful aid project just is to
immerse yourself in the local community, put local
people in charge who are themselves highly
motivated, be adaptive and flexible to respond to
whatever the local people think about how they can
help themselves.’
William Easterly
Source: http://blogs.nyu.edu/fas/dri/aidwatch/2009/04/the_secret_to_successful_aid.html
Effective aid projects or not?
 Government funding to Nepal – the UK
Government recently gave £65 million to the
Government of Nepal to use in its health services
 Oxfam’s Let Agogo Project in Haiti – gives cows
to people who care for the cows and sell on the
dairy products to earn income
 International Aid to Afghanistan – much of the
international aid to Afghanistan is paid to foreign
contractors for projects that do not meet the needs
of the poor
What is effective aid like?
Types
Examples
On donor
AID
Impacts
On recipient
Benefits
Possible problems
Migrant remittances greater than aid!
 The World Bank reports that remittances to poorer
countries (money sent home by migrant workers)
are now greater than official development aid to
those countries.
 The remittances have grown from an estimated
US$73 billion in 1999 to US$290 billion in 2009.
Source: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:
20648762~menuPK:34480~pagePK:64257043~piPK:437376~theSitePK:4607,00.html
Charity begins at home ...
... so are
you
thinking
of
moving?
Which statement do you agree with? and
give reasons for your answer
Statement 1
Aid creates
dependency and
will never really
take the poorest
out of poverty
Statement 2
Aid is a powerful
way of changing
the lives of the
poorest for the
better
Fair Trade
•
The syllabus says “There is an imbalance to
world trade. Efforts such as Fair Trade and
trading groups have been made to lessen
this”
•
a)
Key Words:
Tariff – government taxes on imported or
exported goods
Quotas – limits placed on the amount that
can be produced or im/exported
Subsidies - Government money given to
people who are making or producing goods.
b)
c)
Debt Abolition and Conservation Swaps
•
The syllabus says “People have tried to
lessen countries debt by (i) abolishing debt
and (ii) conservation swaps”
•
See page 203 in your text book. You need to
know what these 2 types of debt relief are.
Abolishing debt: is where an organisation
(e.g. a bank) or a government cancels the
debt of a country
Conservation swap: is where a debt is written
off for the promise that the country will
undertake conservation projects (the
example in the book is Costa Rica and the
USA)
a)
b)
Fair Trade
• Your text book explains all this very well on
pages 204-5. We will read through this and
then answer some of the questions …..
• Answer questions 1 and 2 and 3 b and c (so
NOT 3a and NOT 4)