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Question 14
Discuss how aid programmes can help and hinder development.
Step 1
Answer
Aid programmes can significantly contribute to development by providing financial resources, technology transfer, and expertise.
Financial Assistance: Many aid programmes offer direct financial support that can be used for infrastructure, healthcare, and education. This is crucial in developing countries where government budgets are limited.
Capacity Building: Aid can help build the capacities of local institutions by providing training and development. For instance, training local healthcare workers improves community health services.
Access to Emergency Relief: In cases of disaster, aid programmes can provide immediate relief, ensuring that vulnerable populations receive food, water, and medical care quickly, which can save lives and stabilize communities.
Encouraging Foreign Investment: International aid can foster a more conducive environment for foreign investment by improving security, infrastructure, and overall governance.
Step 2
Answer
While aid can foster development, it can also create dependencies and hinder local initiatives.
Dependency on Aid: Frequent influxes of aid can lead to a reliance on external assistance, making it difficult for local economies to develop independently. Countries may delay necessary reforms due to this dependency.
Corruption and Mismanagement: There are instances where aid funds are mismanaged or siphoned off by corrupt officials. This ultimately deprives communities of the assistance they need.
Market Distortions: Aid can distort local markets by flooding them with goods, making it hard for local producers to compete. This can stifle local entrepreneurship and reduce self-sufficiency.
Conditionality of Aid: Sometimes, aid comes with conditions that may not align with the needs or priorities of the recipient country. This can lead to projects that are either irrelevant or poorly executed.
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