What is the impact of foreign economic aid from rich countries to LDCs? Should developing countries continue to seek such aid? How did so may developing nations get into such serious foreign debt problems, and what are the implications for economic growth and development for these countries
Solution:
Foreign Aid:
An introduction transfer made on especially favourable terms for the purpose of promoting economic development.
Foreign aid is any international transfer made on concessional (i.e.) especially favorable terms for the purposes of promoting economic development. Foreign aid includes grants which need no be repaid, and loans extended on more favorable repayment terms than the recipient could normally secure. Concessional loans have lower interest rates, longer repayment periods, or grace periods during which repayments are reduced or waived (similar to some student loans). Foreign aid can take the form of money, capital goods, technical assistance, food and so forth.
Some foreign aid in granted by a specific country, such as the United States to another specific country such as the Philippines country to country aid is called bilateral assistance. Other foreign aid goes through ...
Solution Summary
The impact of foreign economic aid is assessed in the solution.
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