Reasons For Using Untied Aid
One of the main arguments in favour of untied aid is that tied aid can create important distortions in the market by limiting the number of countries where the recipient can make purchases. These limitations impede the recipient country’s ability to find the most cost-effective way to spend the aid they receive. It is estimated that goods and services purchased with tied aid cost 15-30% more than comparable goods and services acquired with untied aid. Furthermore, tied aid often favours capital-intensive goods and advising primarily in the donor country’s area of expertise. This may lead recipient countries to make purchases which are inappropriate for realising their development goals. In addition, the administration of tied aid requires larger bureaucracies in both the donor and recipient countries. Untying aid would presumably give recipient countries greater freedom to choose how they spend their resources, focusing on the goods and services they need most, and allow them to purchase from the most cost effective sources. Untying aid would allow it to be more efficiently employed, effectively increasing its value.
Read more about this topic: Untied Aid
Famous quotes containing the words reasons for, reasons, untied and/or aid:
“Here we also see: what this divinity lacks is not only a sense of shame—and there are also other reasons for conjecturing that in several respects all of the gods could learn from us humans. We humans are—more humane.”
—Friedrich Nietzsche (1844–1900)
“Write to the point: say immediately what you want to say most, even if it doesn’t “come first.” There are three reasons for doing this. First, you will then have said it, even if nothing else gets said. Second, your readers will then have read it, even if they read no more. Third, having said it, you are likely to have to say something more, because you will have to explain and justify what you chose to say.”
—Bill Stott (b. 1940)
“That when that knot’s untied that made us one,
I may seem thine, who in effect am none.
And if I see not half my dayes that’s due,
What nature would, God grant to yours and you;”
—Anne Bradstreet (c. 1612–1672)
“For this invention of yours will produce forgetfulness in the minds of those who learn it, by causing them to neglect their memory, inasmuch as, from their confidence in writing, they will recollect by the external aid of foreign symbols, and not by the internal use of their own faculties. Your discovery, therefore, is a medicine not for memory, but for recollection,—for recalling to, not for keeping in mind.”
—Plato (c. 427–347 B.C.)