Aid and Indebtedness
Humanitarian Aid
Ethiopia often experiences drought, which hurts the majority of the population due to decreased amounts of crops available for export and a lack of a food source for many others that depend on it. Due to the fact that Ethiopia is so prone to drought, the United States has provided humanitarian aid, aid given with the intent of relieving short-term suffering and does not have to be paid back in the form of food aid. The United States provides food and money to pay for food, which also includes the money needed for the transport, storage, and distribution of food. The focus of the aid that the United States gives to Ethiopia is to reduce famine vulnerability, hunger, and poverty, with emphasis on economic, governance, and some policy reforms (US).
This aid from the US has promoted economic growth through some of the policy reforms that the aid is used for. Some of the reforms are for training of
the citizens in Ethiopia. Providing the Ethiopians with training allows them to become more efficient and increase productivity. Increased productivity leads to
increased output and consequently a growth in GDP. Also, when the US provides the country with food, it also brings fresh, clean water. This helps promote
economic development because it provides the Ethiopians with access to healthy water, unlike the water that some areas are forced to drink that can make them sick. Increased health leads to economic development.
The aid given by the United States actually does help Ethiopia; however, it only comes in times of drought. In those times though, it allows Ethiopians
to survive and get by until they are able to start making a profit again from their crops. However, the economic, governance, and other reforms are more
long-term and do help with economic growth and development.
Development Aid
Ethiopia receives bilateral and multilateral aid from Canada, two types of development aid, aid given in order to alleviate poverty in the long run and improve the welfare of individuals. This aid is provided directly from the Canadian government and also from the Canadian government to multilateral organizations to Ethiopia. Canada’s bilateral development cooperation program’s main focus is food security/agriculture, children/the youth, and enabling accountable public institutions that are actually effective (Canada).
These loans mainly promote economic development mainly promote economic development through the provision of health care and education to the children and youth. By making the youth healthier and better educated, they will be able to be more efficient later on when they start to work, which will increase
productivity and consequently increase output. This will increase revenue and increase GDP, therefore increasing economic growth as well. Also, better
education and health will increase overall standard of living, allowing people to have better communication about sanitation and disease, increasing economic
development.
Most of the aid that Canada has given Ethiopia has been more recent, so the long-term effects are not able to be seen for a really extended period of
time, but the beginning of the long-term effects have been started to be seen and felt. The education of the youth can be seen through encouraging them and
making them want more for their future, pushing them to strive for more growth and development than they currently have now, so the aid has helped. However,
Ethiopia has to be careful to not become over dependent on this aid, because they are one of the largest aid receiving countries in Africa and needs to use
this aid to help strengthen its own economy.
Non-Government Organization
A non-government organization (NGO) currently working on projects in Ethiopia is ActionAid, an NGO that has numerous, specific projects
in Ethiopia. For example, ActionAid is supplying selected seeds to peasant farmers. The selected seeds, which include things like grains and vegetables,
among other things, are provided to poor families that can barely support themselves with their crop yield, allowing increased production. ActionAid works to promote economic development, humanitarian ideals, and sustainable development (Select).
This aid will increase the crop yield by the peasant farmers, increasing their revenue because they know can produce more than they need to sustain their
own family’s life. This additional revenue will increase the peasants demand and also increase GDP growth, increasing economic growth. The selected seed program from ActionAid would also increase economic development because it empowers women through the provision of seeds to women and it increases profits for poor peasants through the seed increasing the supply of the crops for sale, which allows families to spend more money on better health care and education. The
increased revenue gained from the seeds also can be used to increase efficiency, depicted through buying fertilizers and oxen or other methods to produce more
with less support. Not only does increased demand for methods that will increase efficiency increase aggregate supply, which will increase GDP and therefore
economic growth, but increased efficiency will lead to greater output and therefore GDP growth. This cyclic nature will lead to an increase in economic growth which could then be spent on the provision of essential services like infrastructure, health care, and education, increasing economic development as well.
Humanitarian Aid
Ethiopia often experiences drought, which hurts the majority of the population due to decreased amounts of crops available for export and a lack of a food source for many others that depend on it. Due to the fact that Ethiopia is so prone to drought, the United States has provided humanitarian aid, aid given with the intent of relieving short-term suffering and does not have to be paid back in the form of food aid. The United States provides food and money to pay for food, which also includes the money needed for the transport, storage, and distribution of food. The focus of the aid that the United States gives to Ethiopia is to reduce famine vulnerability, hunger, and poverty, with emphasis on economic, governance, and some policy reforms (US).
This aid from the US has promoted economic growth through some of the policy reforms that the aid is used for. Some of the reforms are for training of
the citizens in Ethiopia. Providing the Ethiopians with training allows them to become more efficient and increase productivity. Increased productivity leads to
increased output and consequently a growth in GDP. Also, when the US provides the country with food, it also brings fresh, clean water. This helps promote
economic development because it provides the Ethiopians with access to healthy water, unlike the water that some areas are forced to drink that can make them sick. Increased health leads to economic development.
The aid given by the United States actually does help Ethiopia; however, it only comes in times of drought. In those times though, it allows Ethiopians
to survive and get by until they are able to start making a profit again from their crops. However, the economic, governance, and other reforms are more
long-term and do help with economic growth and development.
Development Aid
Ethiopia receives bilateral and multilateral aid from Canada, two types of development aid, aid given in order to alleviate poverty in the long run and improve the welfare of individuals. This aid is provided directly from the Canadian government and also from the Canadian government to multilateral organizations to Ethiopia. Canada’s bilateral development cooperation program’s main focus is food security/agriculture, children/the youth, and enabling accountable public institutions that are actually effective (Canada).
These loans mainly promote economic development mainly promote economic development through the provision of health care and education to the children and youth. By making the youth healthier and better educated, they will be able to be more efficient later on when they start to work, which will increase
productivity and consequently increase output. This will increase revenue and increase GDP, therefore increasing economic growth as well. Also, better
education and health will increase overall standard of living, allowing people to have better communication about sanitation and disease, increasing economic
development.
Most of the aid that Canada has given Ethiopia has been more recent, so the long-term effects are not able to be seen for a really extended period of
time, but the beginning of the long-term effects have been started to be seen and felt. The education of the youth can be seen through encouraging them and
making them want more for their future, pushing them to strive for more growth and development than they currently have now, so the aid has helped. However,
Ethiopia has to be careful to not become over dependent on this aid, because they are one of the largest aid receiving countries in Africa and needs to use
this aid to help strengthen its own economy.
Non-Government Organization
A non-government organization (NGO) currently working on projects in Ethiopia is ActionAid, an NGO that has numerous, specific projects
in Ethiopia. For example, ActionAid is supplying selected seeds to peasant farmers. The selected seeds, which include things like grains and vegetables,
among other things, are provided to poor families that can barely support themselves with their crop yield, allowing increased production. ActionAid works to promote economic development, humanitarian ideals, and sustainable development (Select).
This aid will increase the crop yield by the peasant farmers, increasing their revenue because they know can produce more than they need to sustain their
own family’s life. This additional revenue will increase the peasants demand and also increase GDP growth, increasing economic growth. The selected seed program from ActionAid would also increase economic development because it empowers women through the provision of seeds to women and it increases profits for poor peasants through the seed increasing the supply of the crops for sale, which allows families to spend more money on better health care and education. The
increased revenue gained from the seeds also can be used to increase efficiency, depicted through buying fertilizers and oxen or other methods to produce more
with less support. Not only does increased demand for methods that will increase efficiency increase aggregate supply, which will increase GDP and therefore
economic growth, but increased efficiency will lead to greater output and therefore GDP growth. This cyclic nature will lead to an increase in economic growth which could then be spent on the provision of essential services like infrastructure, health care, and education, increasing economic development as well.