PEER MUDASIR MBA IIPM

Analysi s Types Origin

Meanin g

y Meaning: Voluntary transfer of resources for

development of recipient.
y Development of the term : Can be traced back to

preceding years of World War-ll

Result: Unstable economy

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Result: Interest rates shoots up

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Result: Domestic Industry destroye

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In 1970, the world s rich countries agreed to give 0.7% of their gross national income as official international development aid, annually.

Source: http://aidwatchers.com/
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Freedom to choose the avenue of investment Freedom to choose the Utilization of Aid Freedom to choose the required policies for development .

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Uni rs l ri r c ti n .. G nder equalit I r ed ealt .. educed C ild rtalit .. at I / alaria and t er disease .. C

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1.Promise of 0.7% of NP remains unfulfilled. 2.Overpriced goods & Services of Donor s has to be bought. 3.Aid given in installments/Aid as policy tool for trade. 4.Promise of freedom to choose proved a chimera.
Source: http://www.realityofaid.org/roa-reports/index/secid/373/part/3
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1. At least 80% of humanity lives on less than $10 a day. 2. Nearly a billion people entered the 21st century unable to read a book or sign their names. 3. 2.2 million children die each year because they are not immunized. 4. 1.6 billion people a quarter of humanity live without electricity.

5. The DP ( ross Domestic Product) of the 41 Heavily Indebted Poor ountries (567 million people) is less than the wealth of the world s 7 richest people combined.(2005) 6. A mere 12 percent of the world s population uses 85 percent of its water, and these 12 percent do not live in the Third World.

Source: http://www.globalissues.org/article/35/foreign-aid-developmentassistance#Aidasaforeignpolicytooltoaidthedonornottherecipient
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Compare that to what was estimated as additional costs to achieve universal access to basic social services in all developing countries.(2008)
Global Priority $U.S. Billions

Global Priority Basic education for all Water and sanitation for all Reproductive health for all women Basic health and nutrition

$U.S. Billions 6

Cosmetics in the United States Ice cream in Europe Perfumes in Europe and the United States Pet foods in Europe and the United States

8 11 12 17

Business entertainment in 35 Japan Cigarettes in Europe 50

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Alcoholic drinks in Europe 105 Narcotics drugs in the world Military spending in the world 400

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780

Source: http://www.globalissues.org/article/35/foreign-aid-development
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1. Promoting Entrepreneurship. 2. Deeping of idea of Democracy. 3. Infrastructure: Connecting the nation. 4. Change in demography- Decrease in Infant mortality, Increase in purchasing power, literacy n health.
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1. East Asia embraced lobalization under their own terms & conditions. 2. East Asia did not follow single dictate of Washington Consensus. 3. Combination of High Savings, overnment investment in education and state directed industrial policy all served to make region an economic powerhouse
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1.Heads of IMF & World Bank chosen behind CLOSED DOORS. 2.Western world decides which event should be LOBAL . 3. Terms of Trade made more worst at Uruguay Round. 4.Policies propounded by IMF & WB, never implemented in Western Hemisphere. 5.Head of IMF, Michael Camdessus humiliated President of Indonesia in 1998
Source: lobalization & its discontents ( Joseph Stiglitz)
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1. Worst ever Natural disaster in western Hemisphere . 1.5 million people homeless and more than 1 lakh remains unknown. 2. Review by Association press found out of 1500 contracts given last year only 20 went to Haitian Companies and all else to US owned companies.

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A S I A N C R S I S

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1. When expansionary fiscal policy was the way out of recession, US treasury & IMF advocated Balanced Budget amendment for Thailand, Korea and East Asia. 2. Economies were asked to built trade surplus to repay foreign Creditors. 3. Interest rates were raised from 25%- 50% in Korea and Indonesia. 4. Inducing Bank Run . 16 private banks in Indonesia were closed rather than rebuilding them. 5. S. Korea ignored the advice and rebuilt its 2 largest bank and recovered quickly. 6. Malaysia, China and India did not followed IMF policies and kept capital controls and was not affected much.
Source: lobalization & its discontents (Joseph Stiglitz)
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http://www.independent.org/students/essay/essay.asp?id=2044 http://uk.oneworld.net/guides/aid http://www.time.com/time/business/article/0,8599,1904339,00.html http://globalsojourns.com/imagedump/Giving%20Circle/travelarticles/Aidin g_Abetting.pdf http://www.unpackingdevelopment.com/wpcontent/uploads/2010/09/dead-aid-revisited-j-rust-smith-august-17-20101.pdf http://www.carnegiecouncil.org/resources/transcripts/0142.html/_res/id=sa_ File1/Dead_Aid.pdf http://www.realityofaid.org/roa-reports/index/secid/373/part/3 http://www.britannica.com/EBchecked/topic/213344/foreignaid/256255/History http://ideas.repec.org/p/kud/kuiedp/0004.html http://www.vaughns-1-pagers.com/politics/us-foreign-aid.htm http://www.globalissues.org/article/35/foreign-aid-developmentassistance#Aidasaforeignpolicytooltoaidthedonornottherecipient http://ravisophocure.com/?p=22132
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