Why is Aid Needed?

Quick revise

Aid is the transfer of money, goods and knowledge.

Sometimes aid is given as a gift, but not always and often strings can be attached which often lead some LEDC’s going further into debt.

There are 5 types of aid:

1. Bilateral aid

Bilateral aid- This is where the aid is given from one government to another. The country receiving the aid may have to purchase goods from the country giving the aid.

The problem is that some governments giving the aid often sell very expensive products e.g. tractors, which will not necessarily help the country progress. The tractors require expensive fuel and spare parts and cause unemployment as less workers are needed on the land.

2. Multilateral aid

This is where governments hand over the responsibility of aid to international aid agencies, such as UNICEF, WORLD BANK and WHO.

These agencies try and pay more attention to what the country actually needs enabling them to become more developed.

3. Aid from non-governmental organisations (NGO’s)

These are mainly charities e.g. Oxfam who collect donations to give to developing countries.

Most NGO’s are based in MEDC’s. They target their aid towards small-scale local projects which bring genuine benefit to the people.

4. Short-term (relief) aid

This is always used to deal with emergencies and involves many countries from all over the world giving money to countries which have been affected by natural disasters. e.g. a cyclone or earthquake

5. Long-term (development) aid

Its purpose is to increase a country’s level of development for the future and allow the people to become more self-sufficient.

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