Monday, 17 October 2011

Advantages and disadvantages of aid

Sometimes, aid can bring long-term problems as well as advantages to the recipient country. The text below gives some of the arguments for and against the provision of aid to LEDCs.

Arguments for and against giving aid

-Emergency aid in times of disaster saves lives.
-Aid helps rebuild livelihoods and housing after a disaster.
-Provision of medical training,medicines and equipment can improve health and standards of living.
-Aid for agriculture can help increase food production and so improve the quality and quantity of food available.
-Encouraging aid industrial development can create jobs and improve transport infrastructure.
-Aid can support countries in developing their natural resources and power supplies.
-Projects that develop clean water and sanitation can lead to improved health and living standards.

-Aid can increase the dependency of LEDCs on donor countries. Sometimes aid is not a gift, but a loan, and poor countries may struggle to repay.
-Aid may not reach the people who need it most. Corruption may lead to local politicians using aid for their own means or for political gain.
-Aid can be used to put political or economic pressure on the receiving country. The country may end up owing a donor country or organisation a favour.
-Sometimes projects do not benefit smaller farmers and projects are often large scale.
-Infrastructure projects may end up benefiting employers more than employees.
-It may be a condition of the investment that the projects are run by foreign companies or that a proportion of the resources or profits will be sent abroad.
-Some development projects may lead to food and water costing more.