Aid and Fair Trade

International aid = a gift of money/goods/services to a developing country
○ Gift does not need to be repaid , unlike a loan
○ Donor may be a country, or group of countries like the EU, or individuals
○ Is targeted at specific long-term development goals for people in LICs/NEEs
■ eg/ money is used on constructing schools to improve literacy rates
● Aid from UK is directed towards Commonwealth countries
○ Commonwealth countries = 53 independent states which were territories of the British empire
■ Are united by history, culture, language and shared values of democracy, human rights
and the rule of law
○ Also, UK government aims to strengthen relationship with powerful NEEs
● India and China provide aid to LICs across Africa (NEE → LIC)
○ India: spend US$6 billion on education projects
○ China: funded the Tazara railway → provides links within the country

 

Effects of international aid:
○ Economic development
■ Great Inga Dam – DR Congo
● $73 million donated by world bank
● Provides energy → is a renewable source
● Reservoir provides access to clean water
○ Landlocked country
○ Need water during drought
● 60000 people displaced
● Could harm the ecosystem
● Provides same energy as 20 nuclear power stations
○ Social and political development
■ “One Laptop per Child” project
● Distributed in South America and Africa
● Funded by Google
● 640000 laptops given out
● Encourages people to go into jobs using technology
● Gives children skills needed for future jobs
■ Pregnancy clinics
● Wider aim to improve political rights of women
● Affects infant mortality, life expectancy, birth rate
● 303000 women died during pregnancy
● 2.7 million babies died in 1st month

Intermediate technology:
● Intermediate technology = simple, easy learned and maintained technology used in a range of economic
activities serving local needs in LICs
○ Makes use of local available resources
● Used by charities and NGOs (non-governmental organisations) to help NEEs/LICs reach their development
goals
○ eg/ sustainable energy
○ eg/ more efficient ways of cooking
● Example:
○ WaterAid: Afridev hand pump
■ Provides aid for improving water supplies in poor countries → uses intermediate tech
■ Created Afridev hand pump to help provide clean water
● Diarrhoea from polluted water accounts for 20% of infant deaths in Tanzania
● Pump was made to tackle life expectancy and QOL issues
○ Better health → ability to attend school → get a job
■ Pump is located in Chessa village
● Close access to clean water
■ Pump breaks down often , → easily fixed by the community due to simple technology
● Life expectancy is increased due to less deaths from disease
● Children are going to school without any illness → increase in literacy rates

Fair trade:
● Fairtrade = when producers in LICs are given better prices for the goods they produce and gives them a
price guarantee (eg/ coffee, bananas)
○ Companies wanting to sell products labelled as “fairtrade” will have to pay producers a fair price
○ Incase global price of a particular crop collapses → Fairtrade farmers will still receive their regular
income
■ Helps them sustain their QOL
● Better price improves farmers’ income and reduces exploitation
○ eg/ misuse of workers, bad working conditions

Consumers in HICs have increased what they spend on Fairtrade goods → knowing that the extra money is
going to the world’s poorest people
● Money is also used for development of the country → eg/ building schools/health centres
● Reasons for Fairtrade:
○ Long hours with little pay
○ Farmers stuck in cycle of poverty
○ Chemicals cause health problems for
workers
○ Pay not enough to cover basic needs or
grow more crops
○ Big companies force down prices
● Disadvantages of Fairtrade:
○ Higher price means that shoppers in
HICs may avoid buying Fairtrade
products
○ Puts a limit on the number of
farms/villages that can be part of the
scheme
● Benefits of Fairtrade:
○ €106.2 million social premium paid to
farmers with Fairtrade
■ 26% spent on
education/healthcare
■ Boosts economy
○ Better working conditions
○ Social groups decide how to spend
premium
○ Chemicals disposed of
○ Less competition between farmers →
can cooperate