Types of Aid (using Kenya as an example)
| Back |  
  The different types of aid are:
a) Multilateral involves loans from organisations like The World Bank or the International Monetary Fund.

Kenya has received funding to help set up a sugar refining industry. They would earn money by selling processed sugar rather than from selling raw sugar cane. A lot of buildings were constructed and expensive machinery was purchased. these loans had to be repaid and if the business was not successful it would lead to debt.
The business was mismanaged and went bankrupt.
   
b) Bilateral involves an agreement between two countries.

Kenya borrowed money from France to build the high technology Turkwell Dam to improve both the water supply and the electricity supply. The scheme cost hundreds of millions of pounds and had to be repaid gradually. The scheme was built in the wrong place and there was corruption which meant politicians accepted bribes to accept the errors.
   
c) Voluntary involves organisations like NGOs (Non-Governmental Organisations (charities like Oxfam or Christian Aid).

Kenya has received a lot of this kind of aid over the decades from MEDC countries. Some help to provide schools or to sponsor individual children to attend school. Some schemes supply food aid or second hand clothing. Other schemes have concentrated on Fair Trade for agricultural products, or improving education for farming as in Farm Africa or Appropriate Technology workshops.
   
 
  Explain the impact of aid on the country or region.