When foreign aid is tied to purchases of low-priced food from the donor country, farm prices can drop in the developing countries, hurting poor farmers.

Question

Quizplus · Accepted Answer

Tying foreign aid to purchases of low-priced food from the donor country can flood the market with cheap imports, driving down prices and making it difficult for local farmers to compete. This can ultimately hurt poor farmers and exacerbate food insecurity in the long run.

When Foreign Aid Is Tied to Purchases of Low-Priced Food