Foreign aid can assist in development efforts from "summary" of Economic Development by Michael P. Todaro,Stephen C. Smith
Foreign aid, in the form of grants, concessional loans, and technical assistance, plays a crucial role in development efforts of many countries around the world. It can provide a much-needed injection of resources to help alleviate poverty, improve infrastructure, and boost economic growth. By targeting key sectors such as health, education, and agriculture, foreign aid can directly contribute to the overall well-being of a population and enhance their quality of life. In this way, it can act as a catalyst for sustainable development by addressing immediate needs and laying the groundwork for long-term progress. Additionally, foreign aid can help bridge the gap between domestic savings and investment, especially in low-income countries where capital is scarce. By providing financial support for critical projects and programs, aid can stimulate economic activity, create employment opportunities, and attract further investment from both domestic and international sources. This can lead to increased productivity, higher incomes, and ultimately, greater ...
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