What are the different types of AID?

What is AID?

Aid is ...

Support Goods Services Money

... given to those in need

• Duration: long-term, short-term, emergency• Delivery: financial, goods, services from trained

people• Source: government, non-governmental

organisations (NGO’s), charity, individuals• International dimension: bilateral, multilateral• Dependency: tied aid

What different types of Aid are there?

Aid matching activity – types of aid

Tied aid

Sustainable development

Bilateral aid

Multilateral aid

Emergency aidVoluntary aid

Non-governmental organisation

Food aid

Bottom-up development

Top-down development

Long-term aidShort-term aid

Aid matching activity – answers

Money, food, goods and services given at times of dire need

Emergency aid

Edible commodities donated to needy populations

Food aid

Aid that is given by a number of countries and organisations, like the United Nations and the World Health Organisation

Multilateral aid

Foreign aid that must be used in the donor country to buy goods and service from the country giving the aid

Tied aid

Development that meets the needs of the people today without harming the ability of future generations to meet their own needs Sustainable development

An independent charitable organisation that provides aid

Non-governmental organisation

Aid from one country to another

Bilateral aid

Money collected from the public (and sometimes governments) by non-governmental organisations

Voluntary aid

Aid that provides support for a short time, sometimes when there is an immediate need

Short-term aid

Development projects that are imposed in people from ‘above’

Top-down development

Aid that provides support over a long period of time to make changes that last

Long-term aid

Development projects that start and work from the ‘grass-roots’ level

Bottom-up development

What people say about aid 1

‘Huge bureaucracies are financed (with the aid money), corruption and complacency are promoted, Africans are taught to be beggars and not to be independent.’James Shikwati a Kenyan economics expertSource: Speigel Online International

‘Foreign aid might be defined as a transfer of money from poor people in rich countries to rich people in poor countries.’Douglas Casey, Classmate of Bill Clinton at Georgetown University Source: http://thoughtsnquotes.blogspot.com/2009/04/sarcastic-quotes-foreign-aid.html

What people say about aid 2

‘In the 1990s dams were built on the Xeset River in the South of Laos to provide electricity and promote economic development. Aid to do this came from Sweden, Norway, the Asian Development Bank and UNDP and China.’

‘On the Boloven Plateau (in Laos) … a Norwegian consulting firm is benefiting from Norwegian “aid”, a Chinese construction firm is benefiting from Chinese “aid”, and Lao villagers are left to pay the costs of destroyed rivers and livelihoods.’Chris Lang

‘We do not want them to build the dam. It will badly affect our land and the environment. The official compensation will not be adequate, but we dare not oppose government officials.’Laos villager

Source: www.wrm.org.uy/bulletin/118/Laos.html

What people say about aid 3

‘One approach to a successful aid project just is to immerse yourself in the local community, put local people in charge who are themselves highly motivated, be adaptive and flexible to respond to whatever the local people think about how they can help themselves.’William Easterly

Source: http://blogs.nyu.edu/fas/dri/aidwatch/2009/04/the_secret_to_successful_aid.html

Lets look at SHORT TERM and LONG TERM aid.

What are the advantages and disadvantages of this type of aid on donor and recipient countries?

Donor countries Recipient countriesType of

aidAdvantages Disadvantages Advantages Disadvantages

Short-term aid

Long-term aid

What is top- down development?These tend to be big schemes and decisions are made by the

national government. Local people who often live near the scheme do not get involved in the process

Examples:

External Groups e.g. World Bank, TNCs

National Government

Local People

What is bottom-up development?

• Local people are fully involved in the process and decision making

Examples:

Local People

National Government

External Groups e.g. World Bank, TNCs

Decision made here

Brainstorm for each type of development the positives and

negatives

Top Down Approach

Brainstorm for each type of development the positives and

negatives

Bottom Up approach

Top Down Approach

Country gets into debt as it borrows money from the World Bank etc

Uses machinery etc rather than providing jobs for local people

Relies on external links and technology

As these areas grow the take away resources from peripheral areas

Conditions often attached to the loans

Dams etc provide energy needed for the country to develop

Often environmentally effective as they use cheaper fuels e.g. HEP

Bottom up Approach

Very limited impact of national poverty levels

Involve the local people

Appropriate technology to the local skill level

Low cost

Which is the best option?

Looking at both Top down and bottom up approaches to development, which do you feel is the best option and why?

Video Clip • http://video.google.co.uk/

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Effective aid projects or not?

Government funding to Nepal – the UK Government recently gave £65 million to the Government of Nepal to use in its health services

Oxfam’s Let Agogo Project in Haiti – gives cows to people who care for the cows and sell on the dairy products to earn income

International Aid to Afghanistan – much of the international aid to Afghanistan is paid to foreign contractors for projects that do not meet the needs of the poor

What is effective aid like?

AID

Types

BenefitsPossible problems

Impacts

On donor

On recipient

Examples