ECON 112 Lecture Notes - Lecture 4: Diminishing Returns, Debt Relief, James Shikwati
Document Summary
Money that one country voluntarily transfers to another, which can take the form of a grant or a subsidized loan. Loans must be characterized by concessional term. Tied: receiving country has to spend some of money on goods and. Public: official development assistance (oda) services on donor country. Includes grants, loans, technical advice, and debt forgiveness. More than flows through multilateral outfits such as wb, un, global fund. Oda as percentage of gnp used to be a bit higher. Ngos: non profit, voluntary citizens" group which is organized on a local, national or international level. Growing rapidly, bil in 1970 to bil in 2008. The us gives a relatively low percentage of gni at 0. 19% but also provides. Direct investment is largest part of flows into developing countries. Some reasons: signal of diplomatic approval, strengthen military ally, reward a government for behavior desired by the donor, extend donor"s cultural influence, etc. Humanitarian and altruistic purposes are at least partly responsible.
