The historical record indicates that foreign aid has
A) played a major role in helping formerly poor countries grow rapidly and achieve high income levels.
B) re-enforced corrupt governments and policies that stifle productive activities.
C) helped poor countries escape counterproductive policies imposed by authoritarian political leaders.
D) promoted economic growth, but slowed the movement toward political democracy.

Question

Quizplus · Accepted Answer

While foreign aid has been intended to stimulate economic development in poor countries, studies have shown that it can also have negative consequences if not properly managed. One of the main problems is that foreign aid can prop up corrupt governments and discourage the development of sustainable businesses as local entrepreneurs are unable to compete with the influx of free or subsidized goods. This can also lead to a lack of accountability and transparency in governance, further perpetuating poverty and underdevelopment.

The Historical Record Indicates That Foreign Aid Has