Student+work+on+international+Aid

Student research 2012

AID FOR:

CHINA & VIETNAM By the end of 2009, China had provided concessional loans to 76 foreign countries, supporting 325 projects, of which 142 had been completed. Of China's concessional loans, 61 percent are used to help developing countries to construct transportation, communications and electricity infrastructure, and 8.9 percent are used to support the development of energy and resources such as oil and minerals.

Complete projects are a major form of China's foreign aid. From 1954, China had helped Vietnam and the DPRK repair war-damaged railways, roads, ports, bridges and urban transport facilities, and assisted them in building a number of basic industrial projects, thus making great contributions to their post-war reconstruction and economic development.

DEBT RELIEF In 1996, IMF and World Bank launched a new programme called HIPC which is known as Heavily Indebted Poor countries initiative. IMF and the World Bank try to reduce the debts in the poor countries. For example, Over 50% of the population live in absolute poverty, surviving on less than US $1 per day Tanzania. However, because of the heavy debts, both economic growth and development were slow due to the lacking investment and public services. In 2001, Tanzania has finally won $3bn in debt relief through HIPC. As a result, Tanzania could improve the public services. The primary school population has increased by 66%, recruited thirty seven thousand teachers and retrained fifteen thousand teachers. The president of Tanzania believes that the basic education can be attained in 2006.

FOREIGN AID TO HAITI 2010 -US aid to Haiti: donation / emergency aid / transfer payment -US provided human resources. Many Americans travel to Haiti regularly to work on humanitarian projects. -US assistance has attempted to create opportunity for stable and growing employment for the growing population in Haiti. -Aid is given to Haiti from US to help recovering from earthquake.

AID AGAINST: Aid Corruption - The highest risk areas were food aid, construction and shelter (red flag area), and high value relief commodities such as tents and medicine. - In reality, Aid is in danger of not reaching the poor or reaching them only partially. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- The credibility of future aid will depend on the ability of the aid system to demonstrate that it can address corruption pro-actively and comprehensively. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- In the majority of cases aid does not save lives: this suggests that the idea of saving lives was not a sound basis on which to base a general approach <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Grand corruption or corruption in major contracting projects involving public officials or politicians and private companies <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Corruption of domestic origin in the recipient country spilling over into foreign assistance, mainly in the form of petty corruption <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Corruption that is directly linked to internal policies and practices of donors themselves. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- A common argument is that foreign aid presents perverse incentives to recipient governments by, for example, investing in sectors not prioritized by the government or by tying aid to procurement in the donor country. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- A related argument is that aid projects distort salary structures and create unhealthy competition for the various benefits that aid delivers. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Foreign aid is used largely for "wasteful public corruption." <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Aid money is counterproductive for good public policies. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Foreign aid money is given for "strategic" reasons, not real needs. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Debt relief is not effective. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Corruption has a negative impact on economic growth

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">http://blogs.worldbank.org/africacan/aid-and-corruption

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- foreign aid to Africa has increased by 6.5% over the past two years, but the gap between economic development has been growing between Africa and the rest of the world over the past two decades <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Debt servicing claims over 80% in Africa, but it is still rising -> the governments in African countries cannot budget their expenditure to benefit their own economy's productive capacities <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">- Falling commodity good prices has lost value of African exports, which in real value is worth twice as much as that of the foreign aid they have been receiving during the recent year.