Zusammenfassung der Ressource
AID
- Humanitarian aid
- Political reasons
- Food Aid Issues
- may force down domestic food prices and affect domestic farmers
- Risk of continued dependency on Aid
- little incentive to be innovative
- Tied Aid
- Not effective
- Does not create employment or increased output
- imports may replace domestic products
- domestic country has to buy goods and service from donor country
- too focused on the modern sector
- may cause a greater gap in incomes and living standards between sectors
- Aid will only be effective if the country agrees to adopt certain economic policies
- Policies that emphasise the free market principles of liberalisation, deregulation and privatisation to encourage economic growth