A New Approach to Foreign Aid

Abstract

The existence of cycles in economic thinking is nowhere better illustrated than in the related fields of economic development and economic aid from advanced to the the less-develeoped countries. If we go back 20 years to the end of the 1940's, we find that those who were then considered most knowledgeable about what are now called the less-develeoped countries believed that it would be long and arduous task to greatly increase the material standards of comfort in these backward parts of the world. They felt that the most effective way of assisting the economic development of these areas was through the provision of technical assistance and advice. They specifically warned against programs based on the transwer of large amounts of capital to the poor countries.