8.8A - About Development Aid
Development aid takes many forms, from charitable gifts to address the impacts of hazards (Haiti) administered both by NGOs (Oxfam or Christian Aid) and national governments, to IGOs offering loans.
Developed countries provide developing and emerging countries with about $150 billion of aid each year. This money is targeted at improving human welfare and human rights.
UK and USA Aid Comparison
Aid from the USA and the UK:
- There is considerable overlap in the lists: countries experiencing conflict or terrorism (Afghanistan, Syria, Pakistan), coping with refugee crises (Jordan - refugees from Syria) or poor, large, strategically important sub-Saharan African countries (Tanzania, Ethiopia, Nigeria) all get large sums in aid.
- None of the top ten recipients are democracies or flawed democracies based on the EIU Democracy Index. (UK: mainly authoritarian, USA: mainly hybrid)
- The sums of money involved are large, the USA gave a total of $16 billion in development in 2017 (and a further, separate $10 billion in military aid)
- In Sub-Saharan Africa, UK and US aid is targeted at developing countries, and may improve human rights through meeting basic needs (education, health, food, water and shelter) but it is also about geopolitical influence by creating allies, fighting threats such as terrorism and countering influences from elsewhere (Russia, China)
- USA main donation: Afghanistan, $1,000,000,000
- UK main donation: Pakistan, £402 million
Types of Aid
Bilateral Aid
Given from one country to another, either as cash grants, loans, or technical or military equipment.
Multilateral Aid
Given from an IGO such as the World Bank. This often involves loans, with have to be repaid.
Aid from NGOs (Voluntary Aid)
Provided by charities such as Oxfam and Christian Aid, funded by donations from ordinary people.
Emergency Aid
Short-term aid, to cope with a natural disaster such as an earthquake or epidemic. This is often from NGOs and governments.
Given from one country to another, either as cash grants, loans, or technical or military equipment.
Multilateral Aid
Given from an IGO such as the World Bank. This often involves loans, with have to be repaid.
Aid from NGOs (Voluntary Aid)
Provided by charities such as Oxfam and Christian Aid, funded by donations from ordinary people.
Emergency Aid
Short-term aid, to cope with a natural disaster such as an earthquake or epidemic. This is often from NGOs and governments.
Motives for Aid
Aid donors may have complex motives for providing it, including:
- A genuine desire to improve human rights and human welfare
- Political ties, such as providing aid to ex-colonies, which may involve an element of guilt or responsibility for past exploitation
- As a way to gain economic access for businesses and assist with trade deals (or prevent other countries from gaining influence)
- As a way to strengthen political alliances.