Wednesday, June 28, 2023

Foreign Aid 20, Why government to government transfer of resources can be wasteful

Scrolling through the pages of the book, "The Concise Encyclopedia of Economics" (2008) by David R. Henderson, I saw this article by Prof. Depak Lal on Foreign aid.


Right. Because foreign aid is not people to people transfer of wealth and income (between international traders, exporters and importers; between foreign employers and migrant workers from Philippines or other developing countries). Foreign aid is transfer of money between and among governments.

Below, good points by Prof. Lal, where government to government transfer of money can also be  government to government inefficiency, wastes of resources.

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