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FOREIGN AID DEVELOPMENT

FOREIGN AID DEVELOPMENT . A Lecture by Felix Kumah-Abiwu PhD Candidate, Dept of Political Science West Virginia University November, 16 th 2010 . Foreign Aid and Development. What is Foreign Aid/Assistance?

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FOREIGN AID DEVELOPMENT

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  1. FOREIGN AID DEVELOPMENT A Lecture by Felix Kumah-Abiwu PhD Candidate, Dept of Political Science West Virginia University November, 16th 2010

  2. Foreign Aid and Development What is Foreign Aid/Assistance? • Money or other forms of assistance for LDCs ( Less Developed Countries) • Source: Indv/Govt/NGOs/Inter Org • The purpose for Aid; • Humanitarian/political/future econ. benefits/Socio-Econ. Development • Main types: Bilateral or Multilateral Advanced (donor) to LDCs (recipient)

  3. Foreign Aid and Development • Power of influence (political and diplomatic) The History of Aid • Created to assist in the recovery of the war-torn economies of Western Europe after WW II (Marshall Plan) • United States provided over $60 billion aid in the form of capital, food, technical skills to Western Europe) • The Cold War and the Politics of Aid (Africa became the battle ground)

  4. Foreign Aid and Development Major Types of Aid (a) Bilateral • Grants (Interest Free) • Loans (Given to be repaid with interest) • Military aid • Technical Cooperation (Peace Corps) • Other forms of technical aid (USAID,CIDA, DFID,JICA)

  5. Foreign Aid and Development (b) Multilateral • UN major agencies • (UNDP, UNICEF, WHO)

  6. Models of Development Aid Three Major Models (Goldstein & Pevehouse, 2010) 1. Disaster Relief Model (Natural &Man –made Disasters, Red Cross, UN, Ind. Govts, NGOs) 2. The Handout Model (Aid for long term dev) 3. Oxfam Model (Focus on ways to be self Sufficient)

  7. Patterns of Foreign Aid • Majority from Govt. Dev. Asst. Committee (DAC) North America, W/Europe & Japan • Arab oil producing countries/Russia & China • 100 billion (2008) 90% from the DAC • DAC goal; To provide 0.7% of their GNPs • Only Scandinavian countries, and not the US

  8. Top Ten Donor Countries

  9. Recipient Regions of Foreign Aid

  10. The Aid Debate • The fourth source of capital for most developing countries is through aid • Foreign aid, most controversial and Debatable issue in contemporary IR • Debate over the usefulness and the effectiveness of aid • The issue of aid fatigue /Issue of Corruption

  11. The Aid Debate Two key scholars at the center of the debate Proponent of Aid for development • (A) Jeffrey Sachs (The End of Poverty: Economic Possibilities of our Time)

  12. The Aid Debate • B) William Easterly (The White Man’s Burden: Why the West’s Efforts to Aid the Rests Have Done Much Ill and So Little Good) • Skeptical about aid • For development

  13. The Aid Debate (C) Dambisa Moyo (Why Aid is Not Working Now: There is a Better way For Africa)

  14. Questions/Your Thoughts

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