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Does foreign aid make economic sense?

Foreign aid is often seen as different from other forms of investment, and some argue that rather than having a positive effect it tends to distort economies and may potentially slow growth and development.

In an article published on The African Business Review, the author argues that this is not the case and cites UNU-WIDER research, which shows that foreign aid has had a positive effect on growth on average in the long run. Furthermore aid has been crucial in supporting the broader development process through expanding life expectancy, cutting child malnutrition and maternal deaths, facilitating transitions to democracy and reducing overall poverty.

See full article on The African Business Review

By Finn Tarp

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