POLSCI 160 Study Guide - Final Guide: Economic Sanctions, World Politics, Active Measures
11 Jan 2017
School
Department
Course
Professor
Document Summary
There are three reasons that developed states provide economic aid to less developed states. First, foreign aid is given for humanitarian or economic / political development. Second, tied aid an aid that is required that the funds be used to buy goods and services from firms based in the donor country helps domestic industries. Lastly, security interests in the countries their favor, such as u. s. "s foreign aid to israel and egypt in 1979: give two reasons why foreign aid might not produce economic growth in the recipient state. Foreign aid rarely produces economic growth in the recipient state because first, the donor may not care about growth in the recipient. Secondly, the leader of the recipient may not wish to produce economic growth in her country. Instead, he is interested in using the aid for other purposes than economic growth: economic sanctions are effective only about 20-30% of the time in producing compliance with demands.
