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697349
AID
Description
ib economics (Development Economics ) Mind Map on AID, created by bella.calonje on 31/03/2014.
No tags specified
development economics
economics
development economics
ib
Mind Map by
bella.calonje
, updated more than 1 year ago
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Created by
bella.calonje
over 10 years ago
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Resource summary
AID
Humanitarian aid
Political reasons
Food Aid Issues
may force down domestic food prices and affect domestic farmers
Risk of continued dependency on Aid
little incentive to be innovative
Tied Aid
Not effective
Does not create employment or increased output
imports may replace domestic products
domestic country has to buy goods and service from donor country
too focused on the modern sector
may cause a greater gap in incomes and living standards between sectors
Aid will only be effective if the country agrees to adopt certain economic policies
Policies that emphasise the free market principles of liberalisation, deregulation and privatisation to encourage economic growth
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