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 LEDs / 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
• • 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-termaid.
• 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