DVA1502 ASSIGNMENT 5 SEMESTER 2 2025 (Answer Guide) 738083 – Due 16 September 2025

DVA1502 ASSIGNMENT 5 SEMESTER 2 2025 (Answer Guide) 738083 – Due 16 September 2025 Contents Title 3 Introduction 3 Define “Foreign Aid” (10 marks) 3 Categories of foreign aid 4 Importance of a clear definition 4 Role of the IMF, World Bank and BRICS (20 marks) 5 1. The International Monetary Fund (IMF) 5 2. The World Bank 6 3. BRICS and the New Development Bank (NDB) 6 Summary 7 Advantages of Foreign Aid (30 marks) 7 1. Poverty Reduction and Human Development 7 2. Humanitarian Assistance and Crisis Relief 8 3. Infrastructure Development 8 4. Institutional Capacity and Governance Support 8 5. Economic Stabilisation and Policy Reform 9 6. Leveraging Private Investment 9 7. Global Solidarity and Cooperation 9 Summary 10 Disadvantages of Foreign Aid (30 marks) 10 1. Dependency and Reduced Self-Reliance 10 2. Debt Burden and Sustainability Issues 11 3. Conditionality and Sovereignty Concerns 11 4. Corruption and Elite Capture 11 5. Market Distortion and Inefficiency 12 6. Poor Project Design and Limited Effectiveness 12 7. Donor Interests and Geopolitical Agendas 12 8. Questionable Impact on Growth 13 Summary 13 Synthesis 13 Conclusion 14 References 14