Development Agencies can be defined as an
agency or organization which is funded by a group of countries (or) by the
citizens of different countries which provide aid for international development. It can be done in terms of supplying goods,
services, loan/monetary, military assistance, medical, food and training aid. Generally
developed nations help emerging and frontier nations.
notable organizations are the World Bank, United Nations Children’s Fund and
the International Monetary Fund. ODA’s can also be owned and controlled by
private individuals like Bill Gates, who help different nations and causes.
Reasons for ODA’s Help to Under-
Developed / Poor Nations
The reasons why ODA’s give aid can be divided upon 3 factors
which are social, economic and political. The detailed explanation is followed
Ø Social factors
The ODA’s give aid for poor/underdeveloped nations because
of humanitarian reasons. They indicate and try to send out a message to the
world that their organization/country want to make this world a more better
place to live in peace & prosperity. They also try to improve & provide
the standard of living, job & education opportunities for the people in the
Ø Economic factors
ODA’s give aid to benefit
economically & also to gain higher interest rates which are repaid as a
loan at the time of expiry. The ODA’s can trade products at their own indicated
prices (which are usually less from the market price) from the recipient nation
and decrease their manufacturing cost
Ø Political factors
The ODA’s give aid to
nations which might be politically useful as an ally during difficult times and
these organization’s and their countries, showcase their power to the world and
maintain a grip on these weaker nations and use them to their benefit in
difficult times. Giving aid depends on the donor country status & power it
has within the international community.
Needs of developing
The basic question is,
“why do some countries take the help of these ODA’s & make themselves fall
into their trap?”
The answer is simple, many
countries are not self-sufficient and want to grow, so that they can meet the
expectations of their country people and make their life more convenient &
easy in different forms. That’s the reason few countries opt for the help of
ODA’s. Few important reasons are as follows
care professionals and medicine
Types of aid
There are 5 main types of
aid provided by ODA’s:
Bilateral aid is given
from one country to another This aid is also known as ‘tied aid’, as there are
many conditions attached. This aid by ODA’s often benefit the donor country rather
than the recipient country.
Multi-lateral aid is when
some group of countries come together to help a particular country, in times of
difficulty. Ex: European Union sending aid to a country like in Sudan, where
terrorism is prevalent.
It is done on a smaller
scale. It is done as a form of charity such as “Christian Aid” to a country
such as Kenya.
short-term aid – It
is provided in times of disasters
such as the 2004 Asian tsunami.
development aid – This
aid involves providing support to local communities through education and training
skills for future development.