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Internal Assessment- Economics Coursework "Parched Earth" For much of this century, Ethiopia, along with many other LDC's (Less developed countries) has faced widespread famine. Drought and poor land management amongst other reasons have caused this famine. To support Ethiopia, countries of the western world, have steadily supplied Ethiopia with Aid in the form food, loans and grants, this is bilateral aid, it moves from one country to another. Most of this aid comes from developed countries. (See chart) In addition, other organizations such as the International Monetary Fund and the World Bank have distributed aid to Ethiopia, this is multilateral aid, and it involves movement of capital from an international organization to a country. This article focuses on the question, should aid be tied to how its government behaves? Aid doled out bilaterally is not often free of commercial objectives. This tied aid usually involves the recipient pledging to by products from...

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