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.

Back to JAMB 2023 QuestionsPrevious QuestionNext Question


Post an Explanation Or Report an Error

If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly.

Your email address will not be published. Required fields are marked *

Don't want to keep filling in name and email whenever you make a contribution? Register or login to make contributing easier.