Pearson Edexcel · A-Level · Economics B

    Course version: 9EB0 · Version from Sept 2015

    B) International aid and improvements in welfare; non- governmental…

    Full specification wording

    Reducing poverty: b) International aid and improvements in welfare; non- governmental organisations (NGOs)

    International aid involves transferring resources between countries to assist economic development and poverty reduction, taking forms like bilateral, multilateral, or tied aid.

    Checked against the Pearson Edexcel 9EB0 specification (opens in a new tab) on .

    • Point 2 of 3
    • 3 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    International aid involves transferring resources between countries to assist economic development and poverty reduction, taking forms like bilateral, multilateral, or tied aid. Improvements in welfare occur when aid effectively targets healthcare, education, and infrastructure. Non-governmental organisations (NGOs), such as Oxfam, play a crucial role in delivering aid directly to communities, often bypassing inefficient state bureaucracy. NGOs are typically effective at implementing small-scale, grassroots projects that directly improve local welfare. However, international aid can sometimes create dependency, distort local markets, or be misallocated, meaning its true impact on long-term welfare improvements must be carefully evaluated.

    What earns the marks

    • Define international aid as the voluntary transfer of resources from one country or organisation to another.
    • Explain how aid can improve welfare by funding essential services like healthcare, education, and infrastructure.
    • Identify the role of NGOs in providing targeted, grassroots assistance and emergency relief directly to communities.
    • Analyse the advantages of NGOs, such as their ability to bypass corrupt governments and focus on specific local needs.
    • Evaluate the limitations of international aid, including the risk of dependency, corruption, and market distortion.

    Common mistakes and how to put them right

    • Assuming all international aid successfully improves welfare.

      Put it right: Acknowledge that aid can be mismanaged, tied to conditions, or create dependency, limiting welfare improvements.

    • Confusing NGOs with government agencies.

      Put it right: Define NGOs as independent, non-profit organisations that operate separately from national governments.

    • Overlooking the negative impacts of tied aid.

      Put it right: Explain that tied aid requires the recipient to buy goods from the donor, which may not be the most cost-effective way to improve welfare.

    Exam tips

    • Use specific examples of NGOs, such as Oxfam or WaterAid, to illustrate how they improve local welfare.
    • Contrast the effectiveness of large-scale government aid with small-scale NGO projects when evaluating poverty reduction.
    • Discuss the concept of aid dependency as a key evaluative point against the long-term benefits of international aid.

    Try the lesson

    The start of the Reducing poverty: b) International aid and improvements in welfare; non- governmental organisations (NGOs) lesson, made from checked teaching notes for this specification point.

    Have a go first

    What is a primary characteristic of non-governmental organisations (NGOs) when providing international aid to developing countries?

    Listen

    International aid involves transferring resources between countries to assist economic development and poverty reduction, taking forms like bilateral, multilateral, or tied aid. Improvements in welfare occur when aid effectively targets healthcare, education, and infrastructure. Non-governmental organisations (NGOs), such as Oxfam, play a crucial role in delivering aid directly to communities, often bypassing inefficient state bureaucracy. NGOs are typically effective at implementing small-scale, grassroots projects that directly improve local welfare. However, international aid can sometimes create dependency, distort local markets, or be misallocated, meaning its true impact on long-term welfare improvements must be carefully evaluated. A strong answer earns marks for these points. Define international aid as the voluntary transfer of resources from one country or organisation to another. Explain how aid can improve welfare by funding essential services like healthcare, education, and infrastructure. Identify the role of NGOs in providing targeted, grassroots assistance and emergency relief directly to communities. Analyse the advantages of NGOs, such as their ability to bypass corrupt governments and focus on specific local needs. A common slip: Assuming all international aid successfully improves welfare. Instead, Acknowledge that aid can be mismanaged, tied to conditions, or create dependency, limiting welfare improvements. Exam tip: Use specific examples of NGOs, such as Oxfam or WaterAid, to illustrate how they improve local welfare.

    See it

    A top-down flowchart. At the top, a node labelled "International aid" branches into four: "Bilateral aid", "Multilateral aid", "Tied aid", and "NGOs deliver aid directly to communities". The NGO node branches into two: "Bypass inefficient state bureaucracy" and "Small-scale grassroots projects"; both of these lead into a single node labelled "Improvements in welfare". Separately, "International aid" also leads to a node labelled "Risks: dependency, market distortion, misallocation", which leads to a final node labelled "Impact on long-term welfare must be evaluated".
    Shows the forms of international aid, how NGOs deliver aid directly to communities to improve welfare, and the risks that mean aid's impact must be evaluated.

    Key words

    Say what each word means before you turn the card.

    International aid

    Try answering aloud or in your head before turning the card.

    Welfare improvement

    Try answering aloud or in your head before turning the card.

    Non-governmental organisations

    Try answering aloud or in your head before turning the card.

    See every definition
    International aid
    The voluntary transfer of resources from one country or organisation to another to assist economic development and poverty reduction.
    Welfare improvement
    A rise in welfare that occurs when aid effectively targets healthcare, education, and infrastructure.
    Non-governmental organisations
    Independent, non-profit organisations that operate separately from national governments and deliver aid directly to communities.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. At the top, a node labelled "International aid" branches into four: "Bilateral aid", "Multilateral aid", "Tied aid", and "NGOs deliver aid directly to communities". The NGO node branches into two: "Bypass inefficient state bureaucracy" and "Small-scale grassroots projects"; both of these lead into a single node labelled "Improvements in welfare". Separately, "International aid" also leads to a node labelled "Risks: dependency, market distortion, misallocation", which leads to a final node labelled "Impact on long-term welfare must be evaluated".
    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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