What are the three different explanations for the foreign aid’s failure to alleviate poverty? How do these explanations view the possibility of improving foreign aid and making it more successful in reducing poverty?

Question

What will be an ideal response?

Answer 1

Ans: According to J. Sachs, foreign aid has not been successful in alleviating poverty because donors do not provide enough aid. According to W. Easterly, foreign aid has not achieved the goal of poverty alleviation because it is given to corrupt governments instead of to local entrepreneurs, who are genuinely interested in alleviating poverty. According to the strategic approach/selectorate explanation, foreign aid has not been successful in alleviating poverty because it is not been designed to do so; its goal is to get policy concessions from the recipient, and it has been successful in achieving this goal.
Sachs believes that increasing the amounts of foreign aid and giving sufficient amounts can help alleviate poverty. Easterly maintains that giving aid to local entrepreneurs can make it a more efficient tool in dealing with poverty. The selectorate theory does not argue that foreign aid can be effectively used to reduce poverty unless the constituents (“We the People”) make alleviating poverty a high priority.