The effects of foreign aid on economic development depend on:
A) cultural factors.
B) geographic region.
C) institutional structure.
D) leader personality.

Question

Quizplus · Accepted Answer

Institutional structure refers to the economic, political, and social framework in place in a country. Foreign aid is more likely to lead to economic development when the institutional structure of the recipient country is strong and supportive of economic growth. This includes factors such as effective governance, rule of law, property rights protection, and a stable macroeconomic environment. Culture, geographic region, and leader personality are also important factors, but their effects on economic development are more indirect and context-specific.

The Effects of Foreign Aid on Economic Development Depend On