Why is not aid improving development, Business Economics

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Why is not Aid improving development?

Aid not improves development because:

• Aid is spent on current consumption

• It is spent on unsuitable capital as opposed to suitable technology making intensive use of labour

• It is spent onto show case infrastructure projects which damage the environment and have small impact in increasing living standards for example dams

• It can lead to dependency quite than self-reliance and self-sufficiency.

• It is in the form free/inexpensive food in non-crisis situation like the raise in supply decrease agriculture prices for local farmers disrupting markets

• When the right social, cultural, political and institutional conditions are not in place;

• Corrupt governments can intercept much support;

• Aid is indefensible.


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