One major criticism of foreign aid to developing countries is that it
ECONOMICSJAMB 2023
One major criticism of foreign aid to developing countries is that it
- A. Gives too much power and control to world bank
- B. Encourages growth in government bureaucracy
- C. Is capital using rather than capital saving
- D. Provides incentives for capital flight
Correct Answer: C. Is capital using rather than capital saving
Explanation
The loans help to create poverty, as capital that could have been invested instead was channeled into debt repayment.
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