| Types of Aid (using Kenya as an example) | |
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| 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. |
| 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. |
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| Explain the impact of aid on the country or region. | |