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One major criticism of foreign aid to developing countries is that it

Economics
JAMB 2023

One major criticism of foreign aid to developing countries is that it

  • A. Gives too much power and control to world bank
  • B. Encourages growth in government bureaucracy
  • C. Is capital using rather than capital saving
  • D. Provides incentives for capital flight
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Correct Answer: Option C
Explanation

The loans help to create poverty, as capital that could have been invested instead was channeled into debt repayment.

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