Aid

• How to measure economic development

  • Types of employment- primary -undeveloped.
  • GDP - value of goods and services
  • Average literacy rate
  • Average life expectancy
  • education rate
• MED is more economically developed
• Why is the world unequal- European countries colonise many parts of the world(using force). The developed colonies provide them with keep raw materials.
• Life expectancy: access to healthcare & medication. Healthier people can mean

  more contributions to the economy

  2. Adult literacy rates: if more adults can read & write - increases chances of

  working in more skilled secondary/ tertiary activities

  3. Education rates: more years spent in education - more likelihood of tertiary

  services

  4. Type of employment: better educated = better prepared for highly skilled jobs

  which tend to be better paid & allow more spent in economy

  5. Increased GDP: If above occurs - GDP will grow. Products/ services will be

  imported & exported
• Globalisation

  • Process whereby the world is more interconnected.
  • Many positives e.g MNCs setting up around the world & bringing employment, but

  it has also stopped economic development e.g

  • Brain Drain - educated people forced to move from LEDCs / leaving countries short of highly skilled workers
  • Over reliance - if a developed country falls into recession - knock on effect

  on developing countries. Trade can slow or stop.

  • MNC Dominance - MNC’s can threaten local industries so they have to close /use up natural resources/ or leave without warning creating unemployment.
• Donation of resources by one government or non-governmental organisation (NGO) to a

  country experiencing short or long term need:

  1. Emergency supplies ( medicines, clothing, water)
  2. Food
  3. People with skills (doctors, engineers)
  4. Technology (medical equipment)
  5. Money (grants or loans)
• Emergency aid : Immediate provision of food, water & emergency shelter e.g Tropical Storm Harvey
• Conditional or tied aid

  • Gov of 1 country donates money or resources to another country (bilateral aid) but with conditions attached
  • Usually in developed countries favour i.e.

  goods/services bought with donated money

  must come from donor country
• untied aid.

  assistance in the form of money given to developing countries by governments without conditions.
• Bilateral Aid

  • Given by a government directly to government of another country e.g Irish Aid

  Multinational aid (official development assistance)

  • Provided by many governments to international organisations that decide where & when aid is distributed in developing countries e.g. World Bank
• • Long term development aid : Providing local communities with education & skills for sustainable development e.g, building schools/ hospitals)
  • Irish Aid - Irish Gov official agency for

  international development provides long-term aid.
• Disadvantages of aid

  • Can increase dependency, sometimes its a loan whereby they may struggle to pay.
  • May not reach people who need it most -corruption
  • Can be used to put political/economic pressure on receiving country (owe donor a favour).
  • In form of defence i.e. military aid if not properly monitored can become corrupt - dictatorships
• Advantages of Aid

  • Emergency aid in times of disaster saves lives.
  • Helps rebuild housing/industry after a disaster.
  • Medical training, medicines & equipment can improve health and quality of living.
  • Resources help people help themselves e.g. increasing years spent in school/ improving literacy rates