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World Aid
Where does the money go?
Well its complicated..........
Conditionalities:
How does Aid work?
Which countries give the most and why?
- A major proportion of aid is tied. It must be spent on resources from the donor. American aid requires the recipient to buy American products and thus waste money on transport. (US law and farmers groups)
- The World Bank presses poor countries to eliminate subsidies on things like fertilizer. In Malawi 50% of farmers couldn't afford it at market price. (ignored)
- The EU encourages other countries to drop subsidies even though it heavily subsidizes its own farming
- Only 6% of aid is in cash even though it is now known to be the most efficient means of providing aid. Why is this?
Different types of aid
(Highest donor states)
European Union – $86.66 billion
United States – $31.55 billion
United Kingdom – $17.88 billion
Germany – $14.06 billion
Japan – $11.79 billion
France – $11.38 billion
Sweden – $5.83 billion
Norway – $5.58 billion
Netherlands – $5.44 billion
Canada – $4.91 billion
Australia – $4.85 billion
(Top donors by percentage of GNP)
Norway – 1.07%
Sweden – 1.02%
Luxembourg – 1.00%
Denmark – 0.85%
United Kingdom – 0.72%
Netherlands – 0.67%
Finland – 0.55%
Switzerland – 0.47%
Belgium – 0.45%
Ireland – 0.45%
Aid
- Emergency aid: Emergency aid is rapid assistance given to a people in immediate distress by individuals, organizations, or governments to relieve suffering, during and after man-made emergencies (like wars) and natural disasters (The UN and Red Cross officially manage this)
- Development aid: Given to countries to develop infrastructure. Often in the form of low interest loans.
- A voluntary transfer of resources from one country to another
Why do countries provide foreign aid?
What countries get aid and why?
Poorest Countries 2016
Aid Recipients 2012
GDP
c 630
(Figures are in billions of US dollars and are taken from 2012)
Afghanistan 6.72
Vietnam 4.11
Ethiopia 3.26
Israel 3.07
Turkey 3.03
Congo, Dem. Rep. 2.85
Tanzania 2.83
Kenya 2.65
Côte d'Ivoire 2.63
Bangladesh 2.15
Comoros 1,519
Guinea-Bissau 1,508
Togo 1,483
Madagascar 1,462
Eritrea 1,297
Guinea 1,214
Mozambique 1,186
Malawi 1,124
Niger 1,080
Liberia 873
Burundi 818
Congo, Dem. Rep. 770
Central African Republic 630