Factors Affecting Aid

SOCIAL FACTORS How poor is the developing country? How poor is the developing country? What are the literacy / health / educational problems in the 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)? 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? Will the developing country be able to buy goods from the richer country?

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

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 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 Looks good to the rest of the world Richer countries better able to trade with us Richer countries better able to trade with us Expanded market creates more jobs at home Expanded market creates more jobs at home

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