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POVERTY AND RECOVERY: THE HISTORY OF AID AND DEVELOPMENT IN EAST AFRICA

Fredrik Erixon ()

Economic Affairs, 2003, vol. 23, issue 4, 27-33

Abstract: Poor countries are believed to be trapped in a vicious circle of poverty where low incomes lead to low savings and insufficient resources for investments. Foreign aid is supposed to boost investment and link poor countries to a virtuous circle of growth. But real per capita growth has not been present in the modern history of Kenya and Tanzania ‐ even though foreign aid has increased many times over. Does the recent history in Uganda pave the way for new principles of efficient aid, or is it just a rare occasion of aid‐induced behavioural change?

Date: 2003
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