Table 6. Foreign assistance : A retrospective Goal of aid Time period Rationale* PROMOTE growth Late 19405 Economic growth would Foster economic…

Table 6. 1. Foreign assistance : A retrospectiveGoal of aidTime periodRationale*PROMOTE growthLate 19405Economic growth would Foster economic19505development . By providing savings , aid would fundInvestment and , hence , bolster growth . Institutionaland other considerations are Ignored .Precondition For19505For sustained growth , developing countries needed" takeoffsocial overhead capital . Substantial levels of private*and public investment are needed before nations*Call Sustain their growth .State- led sectors can19705Development follows if the right sectors are bolstered*faster growthby aid . For example , the export sector can foster*technological transfers , competitiveness, and growth.Market- led growth;Market- led growth is promoted by tradeaccountability*liberalization and privatization . Aid should Flow toCountries pursuing these policies . In addition .accountability emphasized the need For aidconditionality , so that grants and loans are Usedproperly*Bolster Institutions19.906Aid should flow to countries that establish andextend property rights . Recipient countries need topush sound financial practices , central banking , ruleof law , and reduced corruption .Sound policies200 05Development assistance succeeds in recipientcountries with stable macroeconomic environment.that possess stable prices , transparent governance !and property rights . Good policies also attractforeign direct investment , which is a source ofsavings .Ownership and2000’s andRecipient countries must be involved in thepartnership :"beyondblueprint for their development . Donor- recipientpromote public goods :`partnerships are needed to develop these*reduce povertyblueprints . Aid needs to help fund public goods inhealth , security , knowledge , and governance .Poverty needs to be reduced through development*goals involving nutrition , education , health , Etc .

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