POL208Y5 Lecture Notes - Lecture 15: Factor 5, Learning Curve

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Tied aid (last lecture: misallocation of aid. O most countries distribute the same to poor and middle-income countries (versus giving more to poorer countries) O many wanted to give to mozambique, because it was improving so well, but it received too much aid and couldn"t process them (was receiving more than china and india couldn"t handle it) O all sorts of agendas that skew allocation (ex nauru receiving money from. Taiwan for recognition, saudi arabia giving to muslim countries) Inefficiencies and waste (specifically focusing on the donor end waste caused by the mechanism of distribution) O tend to favor funding small projects (rather than a couple large ones) O political problem: canada is not the main donor for any single state, thus it doesn"t get much political leverage (since we"re one of many) But donating to only a couple countries would leave politicians less opportunity for photo-ops, in general a domestic political cost.

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