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Chapter 9: Problem 7

What is development aid, and how does it measure up against the need for such aid?

Short Answer

Expert verified
Development aid is a transfer of resources from developed nations to less developed nations aimed at promoting economic development and welfare. Its effectiveness in meeting the need for such aid can vary widely, impacted by factors such as corruption, inefficiency, improper targeting and inadequate assessment. Evaluation of aid effectiveness requires comparison between desired outcomes and actual results or impacts.

Step by step solution

01

Define Development Aid

Development aid, also referred to as international aid, foreign aid or foreign assistance, is a transfer of resources from developed countries to developing or underdeveloped countries with an aim to promote economic development and welfare. It could take various forms such as financial aid, in-kind supply of goods or services, and technical assistance.
02

Describe the Purpose of Development Aid

The main purpose of development aid is to stimulate economic growth and improve the standard of living in less-developed countries. This could be achieved by investing in sectors like education, health, infrastructure, and agriculture that play a key role in development. Furthermore, it could be used for emergency relief during crises or to improve governance and institution building.
03

Evaluate the Effectiveness of Development Aid

The effectiveness of development aid can be evaluated based on its success in achieving its intended goals such as reducing poverty, promoting educational and health outcomes, improving governance, and fostering economic growth. Various international organizations like the World Bank and United Nations release reports to evaluate and measure effectiveness. Also, Aid effectiveness can be analyzed by comparing the desired outcomes with the actual results or impact on the ground. It is important to consider factors such as corruption, inefficiency, improper targeting and inadequate assessment which may hinder the success of aid.

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