There has been a continuing discussion about the impact of economic, and especially financial, aid on the development of underdeveloped countries. (I do not have in mind humanitarian help in catastrophic situations but aid as an economic phenomenon). India being a developing country is a perfect example of a nation that needs trade and not financial aid for it's development. There is usually a huge gap between the foreign aid rhetoric and foreign aid reality. It is in the interest of the foreign aid community (which is a specific rent-seeking group) to make the gap as wide as possible. Its form and structure is not very good either, because it is based on the interests of the donors, not on the needs of those who are supposed to receive and use it. The interests of the donors, concealed in their missionary moral progressivist rhetoric, are very “earthly”. As a result, much of foreign aid is wasted. And, finally, we should know that the aid is never free. It is, in many cases, very ...
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