Foreign Aid

Question 1

The two states goals of foreign aid?

Answer 1

• Reduce market imperfections (international credit market)

- Reduce poverty by redistributing towards the poorest

Question 2

Results of foreign aid analysis?

Answer 2

Income: + (give to rich!)
Openness, democracy: +
UN friends: +, Egypt: +, Israel: +
Years a colony: +
FDI value more economic than political reasons

Question 3

More results of foreign aid analysis?

Answer 3

USA: Egypt, Israel
France: colonies, no democracy, low income
Japan: UN friend
Everybody gives to their UN friends
Scandinavia + USA reward democracy