CAIE A-Level Economics 11.5.1 International Aid

Practise classifying bilateral, multilateral, tied and untied aid and evaluating whether grants, loans or technical assistance build capacity, improve welfare or create dependency.

Exam points

classify aid by donor route and by whether spending is tied to goods from the donor country
compare grants and loans used for capital equipment, infrastructure, subsidies or emergency relief
evaluate aid through productive capacity, welfare, foreign exchange, dependency and local initiative

[Maximum number: 1]

The United Nations gives aid to a developing country so it can purchase vaccinations manufactured in India.

How is this aid characterised?

characteristic 1

characteristic 2

bilateral

tied

bilateral

untied

multilateral

tied

multilateral

untied

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11.5.1—International aid question 1