This website uses cookies to ensure you have the best experience. Learn more

Outline The Different Types Of Aid. Discuss The View That Foreign Aid Benefits The Donor More Than The Recipient.

1074 words - 4 pages

One of the key aspects of economics that can define a country's market is aid received from various sources. Even though aid is generally received by developing countries, most countries in general have at some point or another been the recipient or the donor. Aid is described as help or assistance for support and relief. In economics however, it can mean much more than that, as there are times when aid can transform a nation.There are several different types of foreign aid with the most common being bilateral, multilateral, official and tied aid. First of all, the type of aid that is most common is bilateral aid which is basically direct aid from one nation to another. Multilateral aid on the other hand is similar but the donors can be numerous. This type of aid can also come from authorized organizations such as the World Bank and International Monetary Fund. Official aid is usually funded by the government of a country and it is recognized by recipients. Tied aid is quite unique from the other common types of support as it involves poor countries buying goods and services from donor countries at higher prices in exchange for the donations received by the recipient.There are also other types of aid such food and technical aid as well as debt cancelling. Technical aid is very useful for developing countries since it can help certain infrastructures. Food aid on the other hand can eradicate poverty and contribute drastically in emergencies and relief. Debt cancelling is also one critical type of relief since it can get a country on its feet. However, this strategy can be a very long term process as debt cancelling can take years and the interest that the donor country receives can be very high.Another type of aid that is very common is NGO's that exist in almost every country. Agencies such as Oxfam, Red Cross, Save the Children and Care are examples of organizations that are usually privately run and help out in improving the lifestyles and well being of the less unfortunate. These organizations are also the first ones to react whenever a disaster strikes such as the tsunami or the recent hurricane. NGO's are non government organizations which can influence important figures all over the world through the powerful impact that they usually have in the media.Even though the aid coming form donor countries are targeted towards the improvement of life to the recipient, most often, it is the donors who benefit the most. A very common example of this situation is when aid is provided for debt cancellation. Developing countries are most often the recipients however, large sums of interests are included which can delay the debt cancellation of the recipient. This makes the situation a long term problem and thus, more and more interest is piled on. The donor is highly beneficial this way as the longer the debt cancellation takes, the more money the donor can earn. On the other hand, the recipient also risks the possible increase of indebtedness.Another...

Find Another Essay On Outline the different types of aid. Discuss the view that foreign aid benefits the donor more than the recipient.

Foreign Aid Essay

1772 words - 7 pages as it helps them to broaden their cultural values around the globe. Conclusion In conclusion, foreign aid does not necessarily mean that it benefits the recipient countries at all times because there are proofs that most of the time it benefits aid granting countries more than the recipient countries. This is demonstrated by the successfulness of donor countries to attain their political motives, achieve a high economic development through

Foreign aid Essay

1747 words - 7 pages awards straight cash payment. Many may wonder why the U.S. would supply other countries with military foreign aid. The answer to this question is not a simple one. As with other types of foreign aid the U.S. usually has more than one objective in mind. Sometimes the U.S. will supply troops as a form of military foreign aid; Other times the U.S will supply retired U.S. arms to countries. The primary recipient of military foreign aid is Israel. The U.S

Foreign Aid

1557 words - 6 pages billion in foreign aid. And that’s only 1.1 percent of the federal budget. A lot of people think that we shouldn’t provide foreign assistance because of the troubled economy back home. However, we already have programs that help people back home. In 2013, The United States spent $405 billion on Welfare, $856 billion on healthcare and $85 billion on Education. So the US is spending more than 10 times the amount in just welfare. So it’s not like they are

Foreign Aid

1107 words - 4 pages substantial parts of their foreign exchange earnings to buy wheat from Canada, the US, from Europe to make the bread in the bakeries to feed people who have these new eating habits. A Trickle Too Little Whether America intentionally used food aid to turn Africans into consumers of wheat, and especially American wheat, is debatable. But David Sogge suggests that the political and economic interests of donor or lender countries

Foreign Aid - 1598 words

1598 words - 7 pages towards progress. At the end, , Appolinario acknowledges that even by taking a neutral point of view, people in Africa are still paying the price of the malfunction of aid. First of all, foreign assistance can be considerate inadequate because most of the time it does not help Africa develop. More than that, it creates a state of dependence among the population, which make the situation even worse at the end. Andrew Mwenda for example, explained

Foreign Aid - 1173 words

1173 words - 5 pages not in a place to be providing financial aid to other countries until it is more economically stable. Perhaps the focus in many countries, especially Africa, should be more on the communities and individuals than on the countries as a whole. It has been know that people of all ages are in danger in Africa due to their government. So why then would America send their money to the African government? In Why Foreign Aid is Hurting Africa, Dambisa

"Poverty Anonymous": How the US sould handle foreign aid

1558 words - 6 pages starvation. But through food aid and fertilizer they will some day be able to stand on their own two feet as a developed nation. As stated before developed countries have both a lower birth and death rate.I believe that Hardin's view of a life boat is a very dangerous and unhealthy view of foreign policy. It would cause much more damage and hard feelings between nations. As Benjamin put it, "Hardin's metaphor of the "lifeboat" is not only misleading

Foreign Aid - 1164 words

1164 words - 5 pages providing financial aid to other countries until our own country is stable. Perhaps our focus to Africa should be more on the communities and individuals than on its country as a whole. It has been know that people of all ages are in danger in Africa due to the way of the government. So why then would we send our money to the African government? In Why Foreign Aid is Hurting Africa, Dambisa Moyo states her feelings on governments receiving

Types of Aid

591 words - 2 pages There are six main types of aid that are available to poorer countries to help them. These are development aid, emergency aid, bi-lateral aid, multi-lateral aid, project aid and programme aid.Development aid: development aid (also development assistance, international aid, overseas aid or foreign aid) is aid given by developed countries to support economic and social development in developing countries. It is distinguished from emergency aid as

Discuss the view that consolidation rather than expansion was the prime objective of Roman foreign policy between 69 and 211 A.D

1850 words - 7 pages Discuss the view that consolidation rather than expansion was the prime objective of Roman foreign policy between 69 and 211 A.DFrom studying Roman frontier policy, it seems clear that the image of the Roman army as great conquerors, sweeping through vast areas of the known ancient world, is a view which is probably more typical of the period of Augustus' reign rather then any subsequent long-term expansion policies of any of the later emperors

The Effects of War and Peace on Foreign Aid - Strayer University - Sociology of Develop Countries

1319 words - 6 pages circumstances and situations occurring in Africa. In this paper we will discuss and define terms like “civil war”, “war”, and “genocide”; we will also discuss what foreign aid is and how it is being used; we will explore the positive and negative effects that war has on nation. But first we must explore the continent of Africa. Africa is the second largest and second most populated continent in the world. It is considered the birthplace of

Similar Essays

The Benefits Of Foreign Aid Essay

1638 words - 7 pages chances of Russia defaulting on a loan are two out of three," according to a General Accounting Office report prepared for Congress in 1994. Although there are many reasons not to provide foreign aid, the United States benifits more in providing assistance than in not provding assistance at all. Foreign aid creates U.S. jobs and advances the well-being of the American economy. According to USAID at the International Development Conference on

The Role Of Foreign Aid In Australia

535 words - 2 pages by the Australian Government goes to places within the Asia-Pacific region with the biggest recipient being Papua New Guinea.There are three main ways in which the foreign aid in the form of money can be administered. These are: bilateral aid which occurs when it is given directly from one government straight to another. Multilateral aid where the funds are transferred t hrough an international organisation. And the third way is through a non

The Failures And Solutions To Foreign Aid

1441 words - 6 pages It is no mystery that today we live in a society in which some are less privileged than others. It is clear and apparent to us everyday when we see the homeless and the diseased. On an international scale, however, it is also an issue as we find countries with lower standards of living and conditions of suffering and turmoil. We see these situations on the news and hear of "developed" countries offering aid to assist and fix some of the issues

The Effects Of War And Peace On Foreign Aid

1181 words - 5 pages more drastic help. The time period of 1970-2002 shows that the people of Sierra Leone went through several coups and governmental changes that put the people through much turmoil and distress (Stewart, J. 2012). During times of peace, Sierra Leone was highly more evident than during times of conflict. This stands true because during war many different military groups were taking control of the country and its government. Groups from the indigenous