Foreign Aid
Foreign aid is the transfer of goods, capital or services from one country to another directly or indirectly through international organizations such as the World Bank, the United Nations Children’s Fund, and many others. It is meant to offer some benefits or help to the recipient country and it comes in several forms for example; military, emergency humanitarian or economic aid. It is aimed at providing help in terms of crisis or disaster.
This essay will discuss the concept of foreign aid. It will then explain the different types of foreign aid and therein discuss its advantages and disadvantages. Finally it will bring to the fore, a soluble (find suitable word) conclusion.
Today African countries are more dependent on foreign aid than they have ever been. There are three different types of aid given to these needy countries and these are: Official Development Assistance (ODA), humanitarian or emergency and Military aid.
ODA is the most common aid donated to Africa and it is more powerful economically than the other two. This particular aid that comes to Africa is donated by the G8 countries (the eight nations that account for roughly two-third of the global economy). Foreign aid was introduced during the 1950’s in order to create economic growth and promote democracy in African countries and it also refers to aid from national governments for humanitarian purposes and for promoting welfare in low and middle income countries. ODA can be bilateral; which refers to government to government transfers or multilateral which is from institutions such as the World Bank or UNICEF that pool aid from one or more sources and disperses it among many recipients. This aid is given as either grants, where no repayment is required, or concessional loans, where interest rates are lower than market rates. Loan repayments to multilateral institutions are pooled and redistributed as new loans.
Emergency aid or Humanitarian aid is rapid assistance given to people in
This essay will discuss the concept of foreign aid. It will then explain the different types of foreign aid and therein discuss its advantages and disadvantages. Finally it will bring to the fore, a soluble (find suitable word) conclusion.
Today African countries are more dependent on foreign aid than they have ever been. There are three different types of aid given to these needy countries and these are: Official Development Assistance (ODA), humanitarian or emergency and Military aid.
ODA is the most common aid donated to Africa and it is more powerful economically than the other two. This particular aid that comes to Africa is donated by the G8 countries (the eight nations that account for roughly two-third of the global economy). Foreign aid was introduced during the 1950’s in order to create economic growth and promote democracy in African countries and it also refers to aid from national governments for humanitarian purposes and for promoting welfare in low and middle income countries. ODA can be bilateral; which refers to government to government transfers or multilateral which is from institutions such as the World Bank or UNICEF that pool aid from one or more sources and disperses it among many recipients. This aid is given as either grants, where no repayment is required, or concessional loans, where interest rates are lower than market rates. Loan repayments to multilateral institutions are pooled and redistributed as new loans.
Emergency aid or Humanitarian aid is rapid assistance given to people in
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