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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.
state the demand theory.
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