IB Geography: Resources: Overseas Aid


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IB Geography: Resources: Overseas Aid

  1. 1. Overseas Aid
  2. 2. <ul><li>Overseas Aid </li></ul><ul><li>is the transfer of resources at non-commercial rates by one country (the donor), or an organisation, to another country (the recipient). </li></ul><ul><li>The basic aim in giving aid is to help poorer countries develop their economies and improve services in order to raise their standard of living and quality of life. </li></ul><ul><li>The resources may be in the form of: </li></ul><ul><ul><ul><li>Money, as grants or loans. </li></ul></ul></ul><ul><ul><ul><li>Goods, food, machinery and technology. </li></ul></ul></ul><ul><ul><ul><li>Know-how and people (teachers, nurses). </li></ul></ul></ul>
  3. 8. No simple correlation between the level of poverty and the amount of aid received. <ul><li>Reasons </li></ul><ul><li>Strong political voice: Israel with its strong Jewish lobby in the USA. </li></ul><ul><li>Supported donor countries in time of war: Egypt and Turkey during the Gulf War. </li></ul><ul><li>Have a valuable natural resource: Kuwait’s oil. </li></ul><ul><li>Have strong historic ties: Jamaica with Britain. </li></ul><ul><li>Strategic military location: Philippines. </li></ul>
  4. 10. Official Development Assistance (ODA) another term for aid. Bilateral Aid is from one country to another in the form of grants, accounting for 75% of official aid. Multilateral Aid is channelled through agencies such as the World bank and IMF (International Monetary Fund). Food Aid accounts for 10% of all bilateral aid.
  5. 11. Disaster relief accounts for 2% of all bilateral aid, and is not targeted on projects. Aid and trade provision is a form of bilateral aid used to prioritise industrial development projects. Project Aid is tied to a specific project. Tied Aid limits the receiver to buying from the donor country.
  6. 12. <ul><li>Tied Aid Case Study: The Pergau Dam : Malaysia. </li></ul><ul><li>Located along the River Pergau in the very most northern part of Sumatra, a Malaysian isle, near the Thai border. </li></ul><ul><li>It is the most costly aid project ever funded by the British Government, over the half the total cost of £415 M was paid by the British Government </li></ul><ul><li>Building began in 1981 with money from the UK foreign aid budget. </li></ul>
  7. 13. <ul><li>It had been a highly controversial project because: </li></ul><ul><li>Electricity had been produced there that will not benefit the poorest Malaysians, most of it will go to the capital, Kuala Lumpur, now a major financial centre for the South-East Asian economy. </li></ul><ul><li>The dam has harmful environmental effects, although the reservoir created by the dam has not displaced local people, it has destroyed large areas of rainforest. Deforestation has led to erosion as the rainwater has stripped away the topsoil. Already the soil has started to silt up the River Pergau and its tributaries and the reservoir behind the dam. The deforestation also threatens the lives of rare animals, including the Sumatran rhino and tiger. </li></ul><ul><li>It is tied aid , the Malaysian Government agreed a huge arms contract with the British Government supplying them military aircraft. </li></ul>
  8. 14. <ul><li>Also the roads driven through the region for building electricity pylons have opened up new areas previously inaccessible to commercial logging companies, causing further environmental destruction. </li></ul>In November 1994 a High Court ruled as illegal British foreign secretary Douglas Hurd’s allocation of £234 million towards the funding of the dam, on the grounds that it was not of economic or humanitarian benefit to the Malaysian people.