​Foreign sources of finance and foreign debt

The poor are different

HOW many people in the world have bank accounts and what do they use them for? You would think there would be answers to those questions, given that banking is the quintessentially global business, and is important not only in the West but in developing countries, where banks can help poor people save, borrow and invest.

The good, the bad and the ugly

SHANNON AIRPORT ON Ireland's west coast has been a gateway from Europe to America since the 1940s. It was built across the estuary of the river Shannon from Foynes, a small town that had served in the interwar years as a refuelling stop for seaplanes and passengers on their way across the Atlantic.

The experimenters strike back

"GIVE a man a fish", said Bono, an Irish singer turned philanthropist, "he'll eat for a day. Give a woman microcredit, she, her husband, her children and her extended family will eat for a lifetime." In the print edition of April 19th, we reviewed a paper by the World Bank that supports the notion that microfinance reduces poverty.

Development-impact bonds are costly, cumbersome-and good

IF A girl in a poor country goes to school, she will probably have a more comfortable life than if she stays at home. She will be less likely to marry while still a child, and therefore less likely to die in childbirth.

The role of foreign direct investment

  • Describe the nature of foreign direct investment (FDI) and multinational corporations (MNCs). 
  • Explain the reasons why MNCs expand into economically less developed countries. 
  • Explain the characteristics of economically less developed countries that attract FDI, including low-cost factor inputs, a regulatory framework that favours profit repatriation and favourable tax rules. ​
  • Evaluate the impact of FDI (advantages and disadvantages) for economically less developed countries. 
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The roles of foreign aid and multilateral development assistance foreign aid

  • Explain how aid is extended to economically less developed countries either by governments of donor countries, in which case it is called official development assistance (ODA), or by non-governmental organisations (NGOs).
  • Explain that humanitarian aid consists of food aid, medical aid and emergency relief aid.
  • Explain that development aid consists of grants, concessional long-term loans, project aid that includes support for schools and hospitals, and programme aid that includes support for sectors such as the education sector and the financial sector.
  • Explain how, for the most part, the priority of NGOs is to provide aid on a small scale to achieve development objectives.
  • Explain how aid might also come in the form of tied aid.
  • Examine the motivations of economically more developed countries giving aid.
  • Compare and contrast the extent, nature and sources of the ODA to two economically less developed countries. 
  • Evaluate the effectiveness of foreign aid in contributing to economic development.
  • Compare and contrast the roles of aid and trade in economic development. 
  • Examine the current roles of the IMF and the World Bank in promoting economic development. 
Some interesting thoughts on priorities when it comes to spending foreign aid from the CCC. Warning the first paragraph has a graphic description of one of the main causes of HIV transmission.

Cost-benefit analyses offend against the notion that life is priceless

T HE AIRLESS nooks under a man's foreskin are a cosy spot for microbes. These can inflame the surrounding skin, helping viruses such as HIV to spread. In places where the disease is common and treatment is patchy, removing foreskins can be a cost-effective way to fight it.

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