Advantages of Aid

• Aid can be beneficial to MEDCs and LEDCs

• Emergency aid saves lives

• Long term aid can improve the standard of living of people living in LEDCs

• Tied aid boosts exports and secures jobs in MEDCs, e.g.- the arms industry

• Aid can open markets for goods from MEDCs, e.g. food aid

Disadvantages of Aid

• Aid is frequently in the form of a loan and LEDCs sink further into debt

• Food aid may cause local prices to fall and put local farmers out of business

• Tied Aid may force LEDCs to buy inappropriate technology, e.g. combine harvesters

• Corrupt Officials may pocket aid or rich landowners may benefit more than poor farmers

• Large scale infrastructure projects damage the environment and increase the national debt, e.g. dams & reservoirs

Types of Aid

• Bilateral Aid - Aid given directly from one government to another in the form of money, training, technology, food or other supplies. In some cases this aid is Tied Aid, which means it has conditions attached which will benefit the donor country.

• Multilateral Aid - Aid which comes from a number of different governments or organisations. It is usually arranged by an international organisation such as the world bank or UN. These organisations usually give to large scale projects.

• Non-Governmental Aid - Organisations such as Oxfam and Save the Children run projects all over the world, many of which are small scale. They also help to organise emergency aid after disasters. These non-governmental organisations (NGOs) raise their money through donations and from government grants.

• Short-Term Aid - This is for immediate relief in emergencies such as famines, earthquakes, floods and droughts. This includes money, food, blankets, tents and medical supplies.

• Long-Term Aid - This is for economic and social development. Its purpose is to improve the quality of life for people living in LEDCs.