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Nepal Earthquake
$4.1 billion pledged in international aid

$1 billion committed to reconstruction and disaster response

Large portion of aid unclaimed and unspent

Only $3. 7 billion traceable after a year

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Any assistance that is given to a country that would not have been provided through normal market force.

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Aid makes a difference to the lives of the poorest people around the world. It is a vital way to help to lift millions of people out of poverty. Because with healthy and educated people, poor countries can develop their economies and stand on their own two feet.

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When money into the system:
G goes up = AD goes up (shifts AD1 to AD2), Q1 to Q2 = shortterm economic growth

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- Improve health, education and welfare

- Better technology and capital accumulation

- Stimulate economy and foster investment

- Long-term economic growth with improvement in capital

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- Encourages corruption

- Encourages dependency

- Wasteful projects

- Increase indebtedness

- No strong correlation between aid and economic growth

- Given for political reasons rather than to the neediest

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When aid is provided to accomplish a specific purpose

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foreign aid that essentially be expended in the donor country or in the selected countries, then it is called tied aid.

A developed country normally provides a bilateral loan or grant to a developing country with the restriction that the money should be spent on goods or services produced in the selected country.

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Its objectives are twofold:
- bring in foreign technology and technicians who can instruct on its use
- raise quality of human capital by providing training facilities, expert guidance, and even foreign scholarships

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A form of debt that is paid off over an extended time frame that exceeds one year in duration (often 10 to 20 years).
Often soft loan (low interest rates and repayable in local currency), more generous than commercial loans.
It is done to help finance development efforts by developing countries .

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Grant aid given to increase productivity of developing economies, supporting purchase of commodities such as consumer items and manufacturing inputs.

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given through international organizations (World Bank) rather than by one specific country

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when one country donates money or resources to another

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Improve human resources, technology and fund specific projects

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Food, medicine emergency relief

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given in order to alleviate poverty in the long run and improve the welfare of individuals. It is provided by individual countries, or through multilateral organizations.
It promote economic development:
- social
- environmental
- political
- infrastructural

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given to alleviate short-term suffering, in cases of:
- natural disasters
- man-made disasters (war)
It is often given as grant, which is provided without expectation of getting repaid.
The primary objective of humanitarian aid is to save lives, alleviate suffering, and maintain human dignity.