Which of the following is a valid shortcoming of the use of foreign aid to eradicate poverty?
A) It can lead to the polarization of the world economy.
B) It may not lead to a sizable increase in physical capital in poorer countries.
C) It is difficult to transfer aid to poor countries.
D) It mostly leads to the transfer of resources among rich countries.

Question

Quizplus · Accepted Answer

Foreign aid may not lead to a sizable increase in physical capital in poorer countries because the resources may not be used efficiently or effectively, or they may not be channeled to the intended groups or sectors. Other valid shortcomings of foreign aid include the potential for corruption, dependency, and distortion of local markets.

Which of the Following Is a Valid Shortcoming of the Use