DEVELOPMENT AND AID

Development projects are forms to promote development in LEDCs There are different types:

PRESTIGE PROJECTS are large -scale, expensive schemes such as building dams, power statios, airports and roads. Problems with this type of projects are:

Money borrowed to fund project increases the country´s debt.
Poor people could be displaced to provide land to the project.
Maintaenance is expensive.

APPROPIATE TECHNOLOGY PROJECTS are small scale and involve local people. Providing Wells and toilets are some examples of this type of projects. This type of project has several advantages:

Low techonology projects are cheaper and risk is more controlable.
Projects provide employment for local people.
Local people can afford products.

AID

Aid is the transfer of resources from MEDCs to LEDCs. Aid includes money, equipment, food, training skilled people and loans.

The United Nations recommends countries to spend 0.7m of GNP on aid per year but a few countries do. Largest donors are Norway, Denmark and Sweden. Largest recipñients are China, Egypt and Indonesia.

TYPES OF AID.

EMERGENCY AID – short term relief during or after a disaster, famine, earthquake. Includes blankets, tents, food, medicine, clothes, wáter and equipment.
LONG TERM AID – encourges develpment and improvement of standard of living. Includes: education, training , technolongy and improvements in infraestructure.
MULTILATERAL AID – arranged by international organizations: Internatiolnal Monetary Fund, United Nations or World Bank.
BILATERAL AID – an arrangement between individual governments.
TIED AID – recipient government must agree to spend money on goods from donor countries.
NGO AID – Non – Governmental Organizations are charities such Oxfam that run aid projects Money is raised from private donations and government grants.

ADVANTAGES OF AID.

Aid can be benefitial for MEDCs and LEDCs.
Emergency aid saves lives.
Long term aid can improve the standard of living of people in LEDCs.
Tied aid promotes exports and secures Jobs in MEDC. arms industry.
Aid can open markets for godos from MEDCs, such as food aid.

DISADVANTAGES

Aid is frequently in form of a loan and LEDC sink further into debt.
Food aid cause local prices to fall and put local farmers out of business.
Tied aid force LEDCs to buy inappropiate technology
Corrupt officlals could pocket aid or rich ladowners may benefit more tan poorer farmers.
Large-scale infraestructura projects damage the environment and increase national debt.