GK
INTERNATIONAL ORGANISATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Foreign aid can also distort the labour market, pushing up wages and incentivising people to leave needed jobs. Many people in recipient countries join NGOs because wages are higher and conditions better, but this removes their skills from local organisations that may need them.
Detailed explanation-2: -According to these researchers, aid has a negative impact on economic growth because economic and political instability, corruption, and weak institutional quality lead to inappropriate usage of foreign aid in a host country.
Detailed explanation-3: -In general, opponents of the way that foreign aid programs have operated charge that foreign aid has been dominated by corporate interests, has created an unreasonable debt burden on developing countries, and has forced countries to avoid using strategies that might protect their economies from the open market.