G11

• Foreign aid


  Any type of assistance that one country voluntarily transfers to another, can take the form of money, military assistance, or humanitarian resources
• Types of foreign aid

  • Bilateral (aid given by the government of one country to another)
  • Multilateral (aid provided by multiple countries to or through multilateral agency)
  • Public (Official Development Assistance, USAID, AECID)
  • Private (Private Development Assistance, NGOs, charity-based organizations)
• Top-down aid


  Assistance provided by governments or international organizations to recipient countries based on the priorities and decisions of the donors rather than the recipients
• Bottom-up aid


  Also known as grassroots aid, a type of foreign aid approach that focuses on working directly with local communities and organizations to address their needs and priorities
• Tied aid


  Assistance provided with the condition that the recipient country must use the aid funds to purchase goods or services from the donor country or specific suppliers designated by the donor
• Untied aid


  Donor country provides assistance to the recipient country without requiring that the funds be spent on goods or services from the donor country
• Reasons for foreign aid


  • Ethical
  • Economic
  • Self-interest
  • Political
• Kinds of foreign aid

  • Humanitarian and disaster relief
  • Economic aid
  • Military aid
  • Healthcare aid
• Debt


  Financial obligations that arise when one party borrows money from another, involving the borrower agreeing to repay the borrowed amount, often with interest, over a specified period
• Sovereignty


  A governing body's full right and power to govern itself without any interference from outside sources or bodies, encompassing internal sovereignty (supreme authority within a territory) and external sovereignty (recognition of a state's independence by other states and international bodies)
• Sovereign debt


  Money borrowed by a country's government, typically used to finance development projects, cover budget deficits, and manage economic stability, issued in the form of government bonds and can be held by domestic or international investors
• Debt management


  Strategies and techniques used to control and reduce personal or organizational debt, for public debt management the main objective is to ensure the government's financing needs and payment obligations are met at the lowest possible cost
• Causes for sovereignty debt issues

  • Excessive borrowing
  • Economic shocks
  • Poor fiscal management
  • Policies imposed by institutions
  • External factors
• Consequences of sovereignty debt issues

  • Economic recession
  • Currency depreciation
  • Social unrest
  • Loss of sovereignty
• Strategies to solve sovereign debt crisis

  • Debt restructuring
  • Fiscal reforms
  • Economic diversification
  • International assistance
  • Transparency and accountability
• Dependency theory


  Explores the idea that resources flow from a 'periphery' of poor and underdeveloped states to a 'core' of wealthy states, enriching the latter at the expense of the former
• Metropole-satellite relationships


  Economic structures link wealthy 'metropole' nations with dependent 'satellite' nations
• Center-periphery dynamics


  Structural inequality where 'core' countries benefit at the expense of 'peripheral' countries
• Dependency leads to economic stagnation and political subordination of the periphery by the core nations
• Key contributions from texts

  • Economic Development (Todaro & Smith, 2015)
  • Development as Freedom (Sen, 1999)
  • Institutions, Institutional Change, and Economic Preference (North, 1990)
  • Why Nations Fail (Acemoglu & Robinson, 2012)
  • Capital in the Twenty-First Century (Piketty, 2014)
  • Globalization and Its Discontents (Stiglitz, 2002)
• International relations theory

  • Realism
  • Liberalism
  • Marxism
• Understanding Dependency Theory and its intersection with International Relations provides valuable insights into global inequality and development strategies