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Development problem _1-11

Development problem _1-11 - should not be more than one...

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Econ 171/EEP151, Fall 2011 Development Problem #1 India’s Foreign Aid Dilemma Due Thursday September 1 The Economist recently ran a lead article on India’s proposal to start its own foreign aid program, like China and Brazil do, in a context where it is itself the major recipient of international foreign aid form OECD countries and still harbors the largest number of poor people in the world. As the OECD countries are all currently trying to reduce their public expenditure budgets, what should they do? Should they take advantage of this to reduce their aid programs to India? If not, what would you suggest they could do to maximally benefit both India and the rest of the world through their foreign aid? Note: This exercise is to help you provide answers to major current development problems. Write your answer as a recommendation to the OECD countries. Your answer
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Unformatted text preview: should not be more than one single-spaced typewritten page. Make sure that you give a title that summarizes your position. Your last couple of sentences should also summarize your solution to the problem. A suggested outline could be as follows: Title that hints at your solution Positive analysis: What does foreign aid to India do? What could India’s foreign aid to developing countries do? Normative analysis Why you may recommend scaling down OECD’s aid to India Why you may recommend another strategy Concluding sentence or two summarizing your position. Reading: The Economist. August 13, 2011. “Aid 2.0. India is thinking about setting up its own aid agency. Why should others give aid to India?”...
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