It also doesnt promote economic growth there is also

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It also doesn’t promote economic growth. There is also not that much, all GDP given is less then 1% to foreign aid Most giving countries are democracies and the citizens vote on the amount When the North is good so is the south and vise versa o Northern Governments to Southern Governments Through IGOs World Bank IMF Regional Development Banks (Multilateral Aid) Advantage: Loans are low interest
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Disadvantage: Structural adjustment lending (conditionality) Global Recessions effect the amount of money going into the South Structural adjustment conditions and global recession o North Private Sector to Southern Government South borrows from northern Banks : Issue Debt to Investors often in the North to make bonds the north to south like the US Advantages: Lots of potential capital running through these loans Disadvantages: Private sectors are profit oriented actors Dependencia : long term debt repayment: “debt forgiveness” is a big issue o All Private Sectors Trade and FDI Remittances Transfers of Capital in the Sectors: Flows of money from private actor to private actor Same as Third Describe the two economic development strategies known as import substitution industrialization and export oriented growth. What regions tended to follow each strategy and how can we explain this choice? How are the two strategies different? How are the two strategies similar? o Import substitution industrialization: Strategy to move up the economic ladder EX: Latin America: Went from Dependecia to ISI because they were borrowing so much from northern banks o Export oriented growth: Making your own products to sell in your state, and putting high taxes on the imported goods in order for yours to sell. Industrialized but with a focus on goods that can be exported, this strategy is oriented with the strategy of the Asian Tigers. o One is import oriented the other Export o Similar because both are strategies that industrialize, and are not capitalist strategies
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