FOREIGN AID
Define foreign aid.
Aid from one country to another to support development or emergencies.
Define a Non-Governmental Organization (NGO).
A non-profit organization independent from governments.
Define the World Bank.
An institution giving long-term development loans.
Define the International Monetary Fund (IMF).
An institution providing short-term financial support.
Define debt relief.
Reduction or cancellation of debt.
Define Official Development Assistance (ODA).
Government aid to developing countries to promote development.
Identify two types of aid commonly provided by NGOs.
Humanitarian aid and development aid.
Identify the main purpose of the World Bank.
To reduce poverty.
Identify one situation in which a country may borrow from the IMF.
Balance of payments crisis.
Identify one cause of high external debt in developing countries.
Excessive borrowing or economic shocks.
Explain the difference between bilateral and multilateral aid.
Bilateral aid is country-to-country; multilateral aid goes through organizations.
Explain how NGOs deliver aid differently from governments.
They work directly with local communities.
Explain how World Bank loans differ from commercial bank loans.
Lower interest, longer repayment, development-focused.
Explain the role of the IMF in solving balance of payments problems.
Provides loans to stabilize the economy.
Explain how debt servicing affects government spending.
Reduces funds for public services.
Explain how foreign aid can increase human capital.
Funds education and healthcare, increasing skills and productivity.
Lucky Prompt - What is demand?
Demand is the quantity of a good consumers are willing and able to buy at different prices.
Explain how World Bank projects support long-term economic growth.
Invests in infrastructure and human capital.
Explain what IMF conditionality means.
Policy conditions attached to IMF loans.
Explain how debt relief can increase spending on health or education.
Frees money for health and education.
How foreign aid can help break the poverty cycle.
Raises income, savings, and investment, helping escape poverty.
Explain how NGOs contribute to human development indicators.
Improve health, education, and living standards.
Illustrate one example of a World Bank-funded development project.
Funding roads, schools, or power plants.
How IMF lending can stabilize a country’s economy.
Stabilizes currency and restores confidence.
Illustrate how debt relief can support economic development.
Allows more investment in development.