Monday, 17 October 2011

Types of aid

More Economically Developed Countries (MEDCs) have high levels of economic development compared with Less Economically Developed Countries (LEDCs). Many MEDCs make allowance in their domestic budgets to provide aid to LEDCs. Many charities also exist to provide aid to LEDCs.

Types of aid

1- Emergency or short-term aid - needed after sudden disasters such as the 2000 Mozambique floods or the 2004 Asian tsunami.

2 - Conditional or tied aid - when one country donates money or resources to another (bilateral aid) but with conditions attached. These conditions will often be in the MEDC's favour, eg the controversial Pergau Dam project in Malaysia, where Britain used aid to secure trade deals with Malaysia.

3 - Charitable aid - funded by donations from the public through organisations such as OXFAM.

4 - Long-term or development aid - involves providing local communities with education and skills for sustainable development, usually through organisations such as Practical Action.

5 - Multilateral aid - given through international organisations such as the World Bank rather than by one specific country.