POL208Y1 Lecture Notes - Lecture 15: Disaster Assistance Response Team, 2010 Haiti Earthquake, Gombong

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Lecture 15 (jan22): the imf and the world. Given the challenges in parts of the developing world, you might think you might even expect that most foreign aid goes where the need is the greatest. The most aid does not necessarily go to those areas with the greatest need: there are two main reasons for that misallocaion: This refers to the ability of the recipient to take in aid. That ability to absorb aid is not unlimited. Foreign aid programs comes with an administraive cost. Even to take something free can oppose a cost upon you. There is a limit of how much and how fast countries can observe and uilize the aid they receive. A relaively poor country; however, it is in recent years, it has a decent governing structure. There is corrupion, but it is fairly good. So here we have a poor country (needs need) and a fairly good efecive government.

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