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Official development assistance - case studies


Read the following two articles that highlight a number of issues relating to official development assistance. The first explores the impact of a donor country, the UK, cutting foreign aid to Malawi. The second looks at the effect on the economy of Ghana of USAID increasing the amount of foreign aid into the country.

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Having read them, reflect upon the following questions:

  1. Compare and contrast the nature of foreign aid provided by the UK and US governments for Malawi and Ghana respectively?
  2. Why has the UK government decided to cut its foreign aid assistance to Malawi?
  3. How has the government of Malawi responded?
  4. What is the likely impact of cutting of UK foreign aid on the economic development of Malawi?
  5. Do you think the US aid to Ghana is primarily targeting growth or development? Explain your answer.
  6. How might USAID impact on the poverty cycle?