Aid - relationship between a nation's investment in defense...

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Aid 1. What is it? voluntary transfer of resources from one country to another, given at least partly with the objective of benefiting the recipient country a. What is not aid: i. Loan—because banks will get benefits from the loans (whenever the interest rates exist) 2. From whom? a. Types of Aid: i. Multilateral: given through the intermediacy of an international organization, such as the World Bank, which pools donations from several countries' governments ii. Bilateral: given by one country directly to another—i.e. US Agency for International Development (NOT in the Treasury department)—part of US policy iii. Non-governmental organizations 3. For what? a. Sectors: i. “Guns vs. Butter”— example of the production possibility frontier; the
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Unformatted text preview: relationship between a nation's investment in defense and civilian goods 4. Aid for whom [what countries receive the most?] The Aid Debate 1. Sachs a. Big Bang: big push in public investment increases productivity b. Type Aid important: for debt relief, not for addressing balance of payments 2. Perkins: aid is a problem for LDCs a. US business interests behind aid & growth b. LDC gets indebted 3. Easterly: small is beautiful [e.g. vs. dams] a. Target social projects: avoid utopian projects [progress in Mexico] Private Non-Aid Sources of Capital 1. BanksLend Money 2. Direct (Foreign) Investment, including by Multinational Corporations 3. Microenterprises...
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Aid - relationship between a nation's investment in defense...

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