Logout Open In App
Open In App
Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 22: Q7RQ (page 456)

Question. True or False. Economists are unanimous that foreign aid greatly helps DVCs

Short Answer

Expert verified

The above-given statement is false.

Step by step solution

01

Foreign aid

Foreign aid refers to the financial assistance that Industrially Advanced Countries (IACs) provide to the developing countries in several forms. This financial assistance helps these countries to strengthen their economy by developing their infrastructure and thus increasing their capital flow.

02

Explanation for the statement being false.

Economists argue that the financial aid provided by the IACs doesn’t help much in the development of DVCs.

  • Most of the assistance is given with a motive to have an influential power over the economic decisions of the DVCs.
  • The majority of the aid is not utilized for development purposes. Corruption diverts the funds to personal political gains and to clear the debt.
  • The most affluent DVCs receive a major share of the aid, and those who are less affluent receive only less aid. So the financial aid is only helping some of the DVCs, and some are still not receiving the actual help they need.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What is the demographic transition? Contrast the demographic transition view of population growth with the traditional view that slower the population growth is a prerequisite for raising living standards in DVCs

Explain how the absolute per capita income gap between rich and poor nations might increase, even though per capita income ( or output ) is growing faster in DVCs than in IACs.

Suppose a country’s total output is growing 10 percent per year, but its population is growing 11 percent per year. What will happen to living standards?

  1. Remain the same
  2. Fall
  3. Rise

Do you think that IACs such as United States should open their doors wider to the immigration of low skilled DVC workers as a way to help DVC develop? Do you think it is appropriate for students from DVC nations to stay in IAC nations to work and build careers?

Question. A DVC’s population is growing 2 percent per year and output is growing 3 percent per year. If the government wants to improve living standards over coming decades, which of the following would probably be the best savings rate for the economy?

a. 2 percent.

b. 0 percent.

c. 10 percent.

d. 5 percent.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free