The roles of foreign aid and multilateral development assistance 4.6

IB Syllabus Requirements:

Foreign Aid

Classifications and types of aid

• Explain that aid is extended to economically less developed countries either by governments of donor countries, in which case it is called official development assistance (ODA), or by non-governmental organizations (NGOs).

• Explain that humanitarian aid consists of food aid, medical aid and emergency relief aid.

• Explain that development aid consists of grants, concessional long-term loans, project aid that includes support for schools and hospitals, and programme aid that includes support for sectors such as the education sector and the financial sector.

• Explain that, for the most part, the priority of NGOs is to provide aid on a small scale to achieve development objectives.

• Explain that aid might also come in the form of tied aid.

• Explain the motivations of economically more developed countries giving aid.

• Compare and contrast the extent, nature and sources of ODA to two economically less developed countries.

Evaluation of foreign aid

• Evaluate the effectiveness of foreign aid in contributing to economic development.

• Compare and contrast the roles of aid and trade in economic development.

Multilateral development assistance

The roles of the International Monetary Fund (IMF) and the World Bank

• Examine the current roles of the IMF and the World Bank in promoting economic development.

Day 1

Notes from “4.6 – The Role of Aid”

Review of Foreign Aid and Development:

Video – “What Has Aid Ever Done for Anyone?” (satirical FOR aid) + “Aid for Norway (satirical AGAINST aid)

Foreign Aid and Development Concerns:

John Stossel: Foreign Aid: More Harm than Good?

How much does the US actually spend on foreign aid?

Part 1 – Articles on Aid

Students to find online any article OR video relating to each:

a. Humanitarian aid

b. Development aid:

i. Bilateral

ii. Non-profit

iii. Multilateral

Students to summarize each article then write their opinion about each re: development

(i.e. think this was good / bad aid b/c).

Part 2 – Aid

“4.6 - Aid for Development” – students to ignore the questions but simply write an

opinion of aid.

Part 3 – “Billanthropy”

“4.6 – Billanthropy” – students to read article and write a reaction.

Part 4 – Aid Worksheets

“4.6 – Decisions and Types of Aid” (Critical Thinking and Decision Making Activity 14 - Investment Decisions for an Underdeveloped Nation + Discussion Topic 20 - Types of Assistance to Underdeveloped Nations

Part 5 – The IMF

Transition from aid to trade in Ethiopia:

Students to go to the IMF’s website and read an article by them about what they’re doing to reach the MDGs at this link - to read the top

2 topics (“The Eight Goals” and “Achieving the MDGs”) – to write out the 8 MDGs then bullet point the specific things the IMF is doing to reach those goals (as best as you can connect the goals to what the IMF is doing).

Note: The issue of how to help LDC's is often a choice of whether to use trade OR to give aid. Evaluate trade vs. aid as a development strategy.

Find some articles about using trade and aid to help developing countries.

Homework: Read pp 597-611 and make sure you can complete all of the syllabus tasks at the top of the page above