What are the main ideas behind Easterly’s arguments about the ineffectiveness of foreign aid to developing...

What are the main ideas behind Easterly’s arguments about the ineffectiveness of foreign aid to developing countries?

Expert Solution

Easterly believes that foreign aid is not effective in helping the people it is intended to help. There are two main reasons behind this ineffectiveness according to him.

First, usage of wrong development model by the governments of developing nations based on financing gap. Easterly showed that for most of the developing countries which have received foreign aid, there have been little to no improvement in the investments and GDP.

Second, He says that maladministration of the funds makes these aids ineffective. According to easterly, there is very little accountability from the receivers of aid and they are mostly corrupt. It has been seen that the funds have been transferred in personal accounts of the government officials.

So these problems according to Easterly are causes of ineffectiveness of foreign aid to developing countries. He suggests ways for better administration to improve the usage of foreign aid.

Rahul Sunny answered 2 years ago

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