Chapter 5 | Page 193 groupings and level of engagement with the international community in seeking aid play a more significant role than the actual resource needs of these States (see Figure 4 below). Figure 4: DAC ODA as a percentage of GNI and in Total Volume (2014) Source: OECD- www.oecd.org; http://www.aidflows.org/ All forms of international assistance and co-operation, including grants, loans, debt relief, and technical and economic co-operation, have their advantages and disadvantages, especially from the perspective of the recipient State. For example, grants financing involves less cost to governments, while debt (including loans and securities) are often the least preferred,25 because higher concessionality and a lower debt burden are good for poor countries.26 Some scholars claim that loans are not effective sources of finance for social sector programmes, such as education and health, because their returns are long- 25 Ortiz, above n 15, 73. 26 Oliver Morrissey, Olaf Islei and Daniel M’Amanja, 'Aid Loans Versus Aid Grants: Are The Effects Different?' (CREDIT Research Paper No. 06/07, Centre for Research in Economic Development and International Trade, University of Nottingham).

Select target paragraph3

Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents