Mozambique!Mozambique! The extend of debt and aid…..

WhErE iS iT?? South- eastern Africa, bordering the Mozambique Channel, between South Africa and Tanzania.

wHy AiD Is ReCeiVeD.. Environment - current issues: A long civil war Recurrent drought resulted in increased migration of the population to urban and coastal areas with environmental consequences; desertification; pollution of surface and coastal waters Elephant poaching for ivory is a problem.

aId…… Mozambique is one of the most aid-dependent countries in the world. After the country gained independence in 1975, it adopted an independent and even fairly sceptical approach to aid. There was a large influx of aid and aid agencies, particularly in the early 1990s, when relief and rehabilitation efforts were at their peak. In recent years, the country has moved into a long-term development stage, and this has been accompanied by a decline in the level of aid, the number of donors and the number of Non- Governmental Organisations (NGOs). However, the country is still heavily dependent on foreign aid and this will remain so for the foreseeable future.

wHo gIvES AiD? Britain is in the process of becoming a significant donor to Mozambique. European Community aid to Mozambique The EC aid portfolio for Mozambique was long dominated by food security (initially food aid and later support for long-term food security strategies), programme aid (general import support and budget support) and transport (roads, railways and ports). Rural development and rehabilitation of health, education and water and sanitation infrastructure have also had a place in the portfolio.

ReCeNt InFo… The Italian government has disbursed over 1.1 million euros (about 1.3 million US dollars) in the first tranches for two projects intended to speed up technological development in Mozambique, according to a press release from the Italian embassy received by AIM on Tuesday A project on the development of human resources in information and communication technologies has received 636,750 euros - the first instalment of what will be a total sum of 1,273,500 euros.

dEbT…. $966,000, est. HIPC heavily indebted poor countries. Mozambique is expected to receive assistance of US$1.4 billion in NPV terms under the Initiative involving debt relief of nearly US$3 billion in nominal terms. This assistance is worth an estimated 70 percent of Mozambique’s GDP. While traditional debt relief mechanisms were already expected to reduce the stock of Mozambique’s debt by about one half.

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South korea!! The extend of debt and aid…..

WhErE iS iT?? Eastern Asia, southern half of the Korean Peninsula bordering the Sea of Japan and the Yellow Sea

GeNeRaL InFo.. South Korea achieved rapid economic growth with per capita income rising to roughly 14 times the level of North Korea. In 1993, KIM Young Sam became South Korea's first civilian president following 32 years of military rule. South Korea today is a fully functioning modern democracy. In June 2000, a historic first North-South summit took place between the South's President KIM Tae-chung and the North's leader KIM Jong Il.

aId…… During the mid-1960s, South Korea's economy grew so rapidly that the United States decided to phase out its aid program to Seoul. South Korea became increasingly integrated into the international capital market. The fact that South Korea was so dependent on foreign trade made it very vulnerable to international market fluctuations. The rapid growth of South Korea's domestic market in the late 1980s, however, began to reduce that dependence. For example, a dramatic rise in domestic demand for automobiles in 1989 more than compensated for a sharp drop in exports. Furthermore, while Seoul's huge foreign debt left it vulnerable to changes in the availability of foreign funds and in international interest rates.

REcEnt InfO… The Republic of Korea was proclaimed in August 1948, and received UN-backed support from the United States after it was invaded by the North two years later. The following four decades of authoritarian rule saw the country's transformation into one of the world's major economies. After the return to multi-party politics in 1987, President Roh Tae-Woo launched an anti-corruption campaign against both his own party and his political predecessor. Despite the historic handshake in Pyongyang in 2000, coming after five decades of hostility, relations with its northern neighbour remain a major concern in Seoul, particularly over the North's fragile economy and its nuclear ambitions. South Korea has resisted international calls for sanctions against the North. The demilitarised zone (DMZ) between South and North Korea remains the world's most heavily-fortified border. But the US, which maintains some 37,000 soldiers in South Korea, is pulling its forces away from the front line and plans to reduce troop numbers.

DeBt A crucial deal in which international creditor banks agreed to turn $24 billion in short-term debt into loans maturing in one to three years. The deal essentially now allows the South Korean government to extend these payments, thereby alleviating the short-term debt problem that has been at the centre of extensive negotiations, and considerable international anxiety, because failure to repay the loans could have sent South Korea's already shaky economy into even more serious crisis After a week of talks in New York, 13 international banks dropped their demand that the South Korean government cover the bonds at double-digit interest rates. The banks settled for a deal in which the South Korean government agreed to "guarantee" the bonds at interest rates of 8 percent for loans maturing in one year, 8.25 percent for two years and 8.5 percent for three years

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