MGEC32H3 Chapter Notes - Chapter 7: Diminishing Returns, Tangled, Incrementalism
16 Apr 2016
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Aid alone is really unlikely to address the problems of the bottom billion, become politicized so its design is often dysfunctional. Aid does speed up the growth process o. Over the last 30 yrs, it has added around 1% point to the annual growth rate of the bottom billion o. Without aid, the bottom billion countries would have been much poorer than they are today. Statistical evidence suggests that aid is subject to diminishing returns o. As you keep increasing aid, you get less & less bang for your buck ; the first million more productive o. Based on the center for global development in washington, when aid reaches about 16% of gdp it ceases to be effective. Can we change the way aid is provided, to make it more effective & increase the scope for aid absorption ? o o o o. Large inflows of money without any restrictions is not well-spent in bottom billion nations.
