Measures to Overcome Disparities

Aid

Aid is assistance given by one or more countries to another in need. It can be in the form of:

• Finance (loans, grants, soft loans)
• Technical support and skilled personnel
• Goods and services such as medicines, food, or equipment
• Emergency relief after natural disasters
• Support for development programmes

Types of Aid

• Bilateral Aid – Direct aid from one country to another, often between an MDC and an LDC. Usually linked to strong economic or political ties. Food aid is a common example.
• Multilateral Aid – Aid channelled through international institutions like the IMF and World Bank, often with conditionalities (requirements such as privatisation or trade liberalisation). While aimed at fostering development, these conditions can sometimes harm poorer countries by removing trade protection or subsidies.
• NGO/Charitable Aid – Raised by non-governmental organisations for:
• • Short-term needs: emergency supplies (food, blankets, medicines) for refugees or disaster victims.
  • Long-term needs: health programmes, education, water supply projects, food production, and technical training.

Other Aid Forms

• Project Aid – For a specific project (e.g., building a school).
• Programme/Long-Term Aid – To improve long-term living standards.
• Grant – Non-repayable money, often for education, health, or infrastructure.
• Soft Loan – Loans with low interest rates and flexible repayment terms.
• Official Development Assistance (ODA) – Grants or soft loans from MDCs to LDCs for economic growth.

Benefits of Aid

• Immediate support after disasters.
• Development of infrastructure.
• Provides capital for projects governments cannot afford.
• Technical assistance that improves self-sufficiency.

Disadvantages of Aid

• Can be misused by governments or corrupt leaders.
• Creates dependency, discouraging local industry growth.
• May be tied to purchases from donor countries.
• Aid may be unsuitable (e.g., trucks sent to areas with no roads).
• Institutional conditionalities can lead to unemployment or reduced affordability.
• Some aid results in debt when loans must be repaid.

Debt Relief

Many LDC debts date back to the 1970s–80s, when they borrowed to offset rising oil prices. Initially, interest rates were low, but later increases and falling export prices caused debt crises.

Impacts of Heavy Debt

• IMF/World Bank conditions may force wage limits and privatisation, leading to unemployment.
• Less funding for healthcare and education; brain drain of skilled workers.
• Climate change impacts agriculture, increasing poverty and disease risk.
• Conflict recovery is harder; vulnerability to crime and exploitation grows.
• Limited borrowing ability in the future.
• High emigration rates, often involving skilled professionals.

Benefits of Debt Relief

• Frees resources for social and economic development.
• Improves future borrowing capacity.
• Attracts foreign investment.

Examples:

• Uganda – More than doubled school enrolment.
• Tanzania – Eliminated school fees; 1.6 million children returned to school.
• Burkina Faso – Stabilised HIV rates.
• Zambia – Increased hiring of teachers and medical staff.

Appropriate Technology

Also called Intermediate Technology, this approach uses methods and tools that are:

• Affordable
• Labour-intensive
• Locally sourced
• Sustainable for long-term community benefit

Problems with Inappropriate Technology

• Ethiopia – Trucks sent where no roads existed.
• Zimbabwe – Tractors provided without spare parts or mechanics.
• Large-scale irrigation in arid zones causing soil salinisation.

Examples of Appropriate Technology

• Wells, drip irrigation, stone lines, and small dams.
• Organic fertilisers from local livestock.
• Locally made and repairable agricultural tools.
• Sustainable small-scale farming with crop rotation and intercropping.

Checklist Before Implementing Technology

• Is it culturally acceptable?
• Is it what the community wants?
• Is it affordable?
• Are there suitable alternatives?
• Can it be repaired locally and cheaply?
• Does it create or protect jobs?
• Is it environmentally friendly?