Most evidence suggests that aid
A) Has a significant impact on growth in most circumstances
B) Only has a significant impact on growth when the amounts are moderate
C) Only has a significant impact on growth when the amounts are large
D) Does not have a significant impact if, and only if, local policy is good
E) Does not have a significant impact on growth in most circumstances

Question

Quizplus · Accepted Answer

This is supported by various studies that have found that aid does not have a significant impact on economic growth in most circumstances. Some studies even suggest that aid can have negative effects on growth, such as crowding out private investment or creating dependency on aid. However, there may be specific cases where aid can have a positive impact, such as in addressing humanitarian crises or promoting long-term development goals through effective implementation and local ownership.

Most Evidence Suggests That Aid