Econ 1-34 Foreign Aid & Remittances

1. Positives of Aid: Public health aid has eradicated the parasitic ___ ___ in sub-Saharan Africa, 3.5 million cases to 126.
3. Foreign aid is usually given to ___ partners or former colonies, not countries struggling with disease or poverty.
6. Downside of Aid: Food donations hurt ___ ___ , because it raises supply, which lowers prices. This could reduce production.
8. Before giving, use a website to ensure the charity is not mismanaged or ___ . Some orgs will waste or steal your money.
11. Comparing the giving of people & countries, immigrants send 3 times more in remittances than countries send in ___ ___ .
12. Public charities require support from the general public, while private charities are small & may have an ___ that lacks general support.
13. Downside of Aid: Donations will not lead to democracy or human rights if the receiving nation is controlled by a ___ leader.
18. Downside of Aid: Donations do not lead to economic growth, unless the receiving country is using ___ policies.
19. Despite the cases of ___ foreign aid, there are still plenty of charities that help the needy. Don’t become cynical.

2. Red Cross, Doctors Without Borders, UNICEF. These are ___ organizations. They help poor countries, like remittances & foreign aid.
4. Most citizens think the U.S. is too ___ with foreign aid, but the U.S. only spends one percent of its budget on aid.
5. U.S. uses its foreign aid to make the world a better place, encouraging aid recipients to pursue human rights & ___ .
7. Sometimes the U.S. will send aid to a country hoping that country uses the aid to ___ U.S. ___ . This helps the donor & recipient country.
9. Instead of receiving money from countries, sometimes countries receive money from people, or immigrants. This money is called ___ .
10. After WW 2, the Marshall plan was used to promote political ___ , assisting war-torn countries as they rebuilt their economies.
11. When one country tries to help another country by giving money or goods, this is called ___ ___ .
14. ___ ___ 2 was the start of International aid. To avoid more global combat, we created the United Nations & World Bank, promoting peace.
15. Secretary of State George Marshall convinced the U.S. Congress to give billions of dollars to Europe, stopping the spread of ___ .
16. Downside of Remittances: Some argue that remittances create a dependency on outside money. They dis-incentivize ___ in the home economy.
17. For 50 years, U.S. & the Soviet Union used international aid as a political tool to win allegiances. This was the ___ ___ .