What is Aid, Business Economics

Assignment Help:

What is aid?

Aid is the administered transfer of resources by a donor country or international agency or non-government organisation to less developed countries to encourage economic growth. It can be between two (bilateral) or several (multilateral) countries/institutions

• Bilateral aid is generally tied aid is while recipients should purchase products through the donor country. An International Monetary Fund loan with a conditional SAP attached is other illustration of tied aid.

• Multilateral aid is generally untied aid which can be spent into any country.

a. Argument for tied aid: the donor country makes sure aid is used for suitable purposes and its own economy advantages

b. Argument against tied aid: purchases may not show best value for money

c. Tied aid is frequently conditional for example on market reforms

• Grants that do not have to be repaid

• Concessional loans repaid at lesser interest rates and over longer eras than commercial bank loans.

• Aid can be into the form of goods, money or technical assistance.


Related Discussions:- What is Aid

Pre and post transactions valuations, Talltree is considering a $12m series...

Talltree is considering a $12m series B investment in Newco for CP with $12m FV or converting to 5m shares of common. The other investors are the founders, who have 10m shares of c

Prepare a schedule of budgeted and cash budget, Question: Yamba Home P...

Question: Yamba Home Products is just beginning its fourth quarter, in which peak sales occur. The company has requested a $12,000, 90-day loan from its bank to help meet cash

Eco/561, purely competitive firms increase total revenue by

purely competitive firms increase total revenue by

Explain the concepts of scarcity and opportunity cost, QUESTION (a) Usi...

QUESTION (a) Using diagrams where appropriate, explain the concepts of scarcity, choice and opportunity cost. (b) Distinguish between positive and negative externalities, il

What is meant by the term value tree, What is meant by the term value tree?...

What is meant by the term value tree? Value Tree: A value tree gradually decomposes the overall objectives of a project within more exact objectives which can be agreed through

Ppc, rice donation

rice donation

Alleviation of poverty, Question 1: Poverty reduction is generally infl...

Question 1: Poverty reduction is generally influenced by changes in average income and income redistribution. Thus, in practice it is hard to adjust to the right balance betwee

ELASTICITY, WHY DO GOVERNMNETS PLACE HIGH TAX RATES ON PRODUCTS SUCH AS PET...

WHY DO GOVERNMNETS PLACE HIGH TAX RATES ON PRODUCTS SUCH AS PETROLA ND CIGRATTES

How subsidies in agricultural trade is trade-distorting, Problem 1: (a)...

Problem 1: (a) Clearly distinguish between the theories of Comparative and Absolute advantage of trade (you are expected to use examples to illustrate your answer). (b) Acco

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd