Foreign Aid and Remittances

Flashcards covering key concepts, definitions, and impacts related to foreign aid and remittances.

Foreign Aid

Resources given by one country to another, typically to support development, provide humanitarian relief, or promote political and economic stability.

Bilateral Aid

Direct assistance from one country to another.

Multilateral Aid

Assistance provided through international organizations that pool resources from several countries.

Humanitarian Aid

Emergency relief given during crises like natural disasters or war.

Military Aid

Assistance to strengthen a country’s defense systems.

Development Aid

Long-term support for education, health, and infrastructure.

Pros of Foreign Aid

Helps save lives during emergencies, supports development, and builds international goodwill.

Cons of Foreign Aid

Can create dependency, may be misused due to corruption, and may be tied to donor's political or economic interests.

Remittances

Money or goods sent back by migrants to their home countries, usually to support their families.

Purpose of Remittances

Used for basic needs such as food, education, healthcare, housing, or small business investments.

Economic Impact of Remittances

Boosts national income, helps reduce poverty, strengthens foreign currency reserves, and improves social access to education and healthcare.

Pros of Remittances

Direct financial support for families, helps reduce poverty, and stimulates local economies.

Cons of Remittances

May create dependency, lead to economic reliance on labor migration, and pose emotional challenges from long separations.