Question #268960

 What is the impact of foreign aid from high-income countries? Should low-income countries continue to seek such aid, and if so, under what conditions? Should high-income countries continue to offer such aid, and if so, for what purposes? 


Expert's answer

If foreign aid contributes to any productive consumption, such as enhancing education, building rural and urban infrastructure, protecting private property, and reducing trade risks, it results in a net benefit to economic performance, and countries that receive more aid should expect increase in their well-being.


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