Does foreign aid lead to economic growth?, International Economics

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Question 1:

The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government intervention appears a necessary evil for higher levels of economic welfare in the long run.

Question 2:

Describe the different forms that foreign aid may take?
Does foreign aid lead to economic growth? Discuss.

Question 3:

Clearly explain what is meant by the following:
(i) Poverty line
(ii) Absolute poverty
(iii) Relative poverty
(iv) Inequality

Question 4:

Capital formation is considered to be an essential ingredient of economic expansion and diversification. In Mauritius, policymakers have always placed health and education at the forefront of the local development content, mainly through universal access to free education and health.

According to you, how does a sound education or health policy impact on national welfare levels?


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