Econ assignment

a) Explain the various types of aid which a developing country might receive.

Developing countries are countries that have low real GDP per capita and have large basic sectors that produce basic commodities. Aid can be defined as assistance that countries overseas provide to that particular country. There are three ways in which aid can be provided, humanitarian, bilateral and multilateral. Humanitarian aid is aid through a big organization such as agencies like the United Nations. There are ways it can be given to particular problems such as natural disasters such as the 3.11 earthquake in Japan.
Bilateral aid is a way to provide assistance from country to country and multilateral aid is when a group of different countries pay money into one organization.

b) Aid is an effective means of promoting the development of poorer countries. Evaluate this statement.

Development is when a country increases in the ability of producing goods and services and thus can provide a higher quantity of goods to increase the standard of living. However, economic growth is not the same as development. Aid is important to developing countries because it provides a way for the country to increase their general sectors that produce basic commodities. Aid can furthermore allow the developing country to increase their GDP per capita and thus, increase the standard of living. Ways in which aid can be provided to developing countries in order to promote development include humanitarian, bilateral and multilateral. The most efficient way to provide assistance would be bilateral because it is direct aid given from one country to another.

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