Types of Aid

Some economists argue that financial aid to developing countries is, in the long run, inefficient and even counter-productive. However, there are two main types of aid that we will deal with here. First, there is long-term aid to countries such as Ethiopia and Somalia, where there are recurrent problems such as drought and poor agricultural production, and where there are little or no industry to speak of - problems that won't go away with an injection of money. Then there is emergency aid, which also appeals for contributions from the public when a disaster of one kind or other strikes. Recent examples would be the earthquake in Haiti, and the tsunami in Japan. In the case of emergency aid, it arrives in the first instance as food, clothing, shelter, and medical aid, all of which are of immediate practical use and great benefit. With countries that have long-term developmental problems, just pumping in money is not enough and, sad to say, a lot of the money doesn't go where it should. What is more important is providing know-how: teaching the skills and expertise needed to help develop the economy and social services such as health, sanitation, and so on. It is also necessary to help build the institutions - a bureaucracy if you like - that can organize and run these services.