Why might trade be more effective at addressing poverty in developing countries than foreign aid? A....

Why might trade be more effective at addressing poverty in developing countries than foreign aid?

A. Aid can undermine the development of effective political institutions.

B. Trade benefits are distributed equitably within developing societies.

C. Aid targeted at delivery of medicine and education in poor areas has not shows any success

D. Developing countries have historically taken a greater absolute share of the gains from trade than developed countries

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B. Trade benefits are distributed equitably within developing societies.

According to the research and data the foreign aid is not effective in the developing nations. Foreign aid is not reaching to have the needy people because of inefficient and corrupted administration and government. Its become the illegal source of income for administrative officers and increase their wealth sharply instead of increasing the income and development of the poor people.Its also increase the dependency of poor nation on foreign aid. There are number of hidden political and economical interest behind the foreign aid.

Other side trade improve the effectiveness and efficiency of poor country and creat employment opportunities. Through trade a poor country import the required technology, goods , services or knowledge from advanced country that increase the productivity and efficiency of economy and its make a nation more dependent and increase the production that fulfill the domestic demand also positively affect the export.

These all these thing creat lot of opportunities for businesses and jobs that increase the income level of the people and that increase the domestic consumption. Higher consumption level boost the aggregate demand in the economy that increase the GDP growth rate. So, all these benefits are distributed equitably within developing societies.

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Rahul Sunny answered 2 years ago

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Why might trade be more effective at addressing poverty in developing countries than foreign aid? A....

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