The economics of foreign aid and self-sustaining development

About this book

The principal purpose of this book is to apply economic development theories and findings of empirical studies to major issues of U.S. foreign aid policy. The authors address such questions as: 1) Is there a conflict between maximizing economic growth on the one hand and reducing absolute poverty or satisfying basic needs on the other? 2) What is the role of foreign aid in promoting growth at different stages in the development process, and how can aid be more effective in promoting self-sustained growth? 3) What should be the role of government in promoting development, and how do government policies inhibit the effectiveness of foreign aid? 4) How should the limited supplies of foreign aid be allocated among countries at different stages of development, among sectors within countries, and between private and public activities?