Untied Aid

	Untied Aid Untied aid is assistance given to developing countries which can be used to purchase goods and services in virtually all countries. It is contrasted with tied aid which stipulates that goods and services bought with it can only be purchased from the donor country or from a limited selection of countries. One of the main arguments in favour of untied aid is that tied aid can create important distortions in the market by limiting the number of countries in which the recipient can make purchases. The limitations impede the recipient country's ability to find the most cost-effective way to spend the aid they receive. It is estimated that goods and services purchased with tied aid cost 15-30% more than comparable goods and services acquired with untied aid. Furthermore, tied aid often favours capital-intensive goods and advising primarily in the donor country's area of expertise. That may lead recipient countries to make purchases which are inappropriate for realising their development ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Tied Aid Tied aid is foreign aid that must be spent on products & services provided by companies that are from the country providing the aid (the donor country) or in a group of selected countries. A developed country will provide a bilateral loan or grant to a developing country, but mandate that the money be spent on goods or services produced in the selected country. From this it follows that untied aid has no geographical limitations. In 2006, the Organisation for Economic Co-operation and Development (OECD) estimated that 41.7 percent of Official Development Assistance is untied.OECD. (2006). ''2005 Development Co-operation Report''. Volume 7, No. 1. Paris: OECD. Available for downloadOECD Journal on Development, Development Co-operation Report 2005/ref> Definition The full definition of ''tied aid'' as defined by OECD is: Tied aid credits are official or officially supported Loans, credits or Associated Financing packages where procurement of the goods or services involved is l ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Market Distortion In neoclassical economics, a market distortion is any event in which a market reaches a market clearing price for an item that is substantially different from the price that a market would achieve while operating under conditions of perfect competition and state enforcement of legal contracts and the ownership of private property. A distortion is "any departure from the ideal of perfect competition that therefore interferes with economic agents maximizing social welfare when they maximize their own". A proportional wage-income tax, for instance, is distortionary, whereas a lump-sum tax is not. In a competitive equilibrium, a proportional wage income tax discourages work. In perfect competition with no externalities, there is zero distortion at market equilibrium of supply and demand where price equals marginal cost for each firm and product. More generally, a measure of distortion is the deviation between the market price of a good and its marginal social cost, that is, the differen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Tied Aid Tied aid is foreign aid that must be spent on products & services provided by companies that are from the country providing the aid (the donor country) or in a group of selected countries. A developed country will provide a bilateral loan or grant to a developing country, but mandate that the money be spent on goods or services produced in the selected country. From this it follows that untied aid has no geographical limitations. In 2006, the Organisation for Economic Co-operation and Development (OECD) estimated that 41.7 percent of Official Development Assistance is untied.OECD. (2006). ''2005 Development Co-operation Report''. Volume 7, No. 1. Paris: OECD. Available for downloadOECD Journal on Development, Development Co-operation Report 2005/ref> Definition The full definition of ''tied aid'' as defined by OECD is: Tied aid credits are official or officially supported Loans, credits or Associated Financing packages where procurement of the goods or services involved is l ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Phantom Aid Phantom aid is what ActionAid describes as aid that never reaches the targeted recipients. This is mostly down to administration costs, as well as aid being used towards commercial ventures. The charity believes that half of all aid fails to reach the poor. See also * Tied aid Phantom aid in Afghanistan Phantom aid is aid that never reaches the intended recipient countries. It is aid that gets looted in many ways such as tied aid and domestic refugee spending in donor countries. One of the countries affected by phantom aid is Afghanistan. It ha ... References {{reflist Aid Bribery Embezzlement ... [...More Info...] [...Related Items...] OR:* [Wikipedia] [Google] [Baidu]
picture info	International Development International development or global development is a broad concept denoting the idea that societies and countries have differing levels of economic or human development on an international scale. It is the basis for international classifications such as developed country, developing country and least developed country, and for a field of practice and research that in various ways engages with international development processes. There are, however, many schools of thought and conventions regarding which are the exact features constituting the "development" of a country. Historically, development was largely synonymous with economic development, and especially its convenient but flawed quantification (see parable of the broken window) through readily gathered (for developed countries) or estimated monetary proxies (estimated for severely undeveloped or isolationist countries) such as gross domestic product (GDP), often viewed alongside actuarial measures such as life expectancy. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]