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Factors Affecting Aid

Factors Affecting Aid. SOCIAL FACTORS. How poor is the developing country? What are the literacy / health / educational problems in the country?. ECONOMIC FACTORS. Will the donor country get something in return (e.g. coffee, mineral resources)?

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Factors Affecting Aid

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  1. Factors Affecting Aid

  2. SOCIAL FACTORS • How poor is the developing country? • What are the literacy / health / educational problems in the country?

  3. ECONOMIC FACTORS • Will the donor country get something in return (e.g. coffee, mineral resources)? • Will the developing country be able to buy goods from the richer country?

  4. POLITICAL FACTORS • Is the developing country a political ally? (e.g. no aid to Zimbabwe under Mugabe) • Is the poor country a democracy?

  5. BENEFITS TO DONORS • Despite the fact that very few rich countries give as much aid as the UN recommends, there are many benefits for donor countries • Looks good to the rest of the world • Richer countries better able to trade with us • Expanded market creates more jobs at home

  6. MORE BENEFITS • Tied aid obviously has direct benefits • Good way of getting rid of unneeded surplus food • Good relationships guarantees continued supply of needed African food crops and raw materials

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