Question on: JAMB Economics - 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 Option: C
One major criticism of foreign aid to developing countries is that it is capital using rather than capital saving. This criticism suggests that instead of fostering economic development and self-sustainability, foreign aid may be absorbed by the recipient country's consumption and may not contribute significantly to long-term capital formation or growth.
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