theme 4 : aid / debt relief

definition of aid

support from govs towards economic development and welfare in low-middle income countries without expectation of repayment

4 types of aid

• humanitarian

• developmental

• debt relief

• tied aid

humanitarian aid definition

short term material and logistical assistance to people in need

developmental aid definition

support towards ensuring a countries sustainable growth in the long run

debt relief definition

the reduction, re-financing, re-organisation or cancellation of a countries foreign liabilities

tied aid definition

conditions - must be spent on goods and services provided by companies from the country providing the aid

4 arguments for aid

• eradication of absolute poverty

• 0.7% is a tiny amount for rich countries to pay

• can stabilise post conflict regions

• investment can create self sustainable economies

eradication of absolute poverty explanation

• is the humane thing to do

• save lives, increase standard of living for others

small amount to pay explanation

• wealthy countries might have issues with relative poverty but they still have 99.3% of their GDP

• poorer developing countries could hugely benefit from the support of others

stabilising post conflict countries explanation

• developing countries with poorer standards of living are more prone to rebellion, coups and civil wars

investment explanation

• long term investment

• leads to less need for aid as GDP grows

4 arguments against aid

• absolute poverty is not our problem

• corruption / incompetence

• creates an aid dependency culture

• misdirected aid

not our problem explanation

• uk has stagnated since 2008

• public services are dropping in quality

• poverty and inequality are rising

• the uk needs to focus on fixing its internal problems

corruption / incompetence explanation

• uk funds may not reach intended targets

• could be syphoned off by gov officials / civil servants

aid dependency explanation

• countries need to learn to fend for themselves

• there is no incentive to invest / innovate if a country is reliant on handouts

misdirected aid explanation

• e.g. to india

• not given to the worlds poorest

• is given to potential trade partners instead