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Dependency theory
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=== Corruption === Aid dependent countries rank worse in terms of level of [[corruption]] than in countries that are not dependent. Foreign aid is a potential source of rents, and [[rent-seeking]] can manifest as increased public sector employment. As public firms displace private investment, there is less pressure on the government to remain accountable and transparent as a result of the weakened private sector. Aid assists corruption which then fosters more corruption and creates a cycle. Foreign aid provides corrupt governments with free cash flow which further facilitates the corruption. Corruption works against economic growth and development, holding these poor countries down.<ref>{{Cite journal|last=Bräutigam|first=D.|date=2000|title=Aid Dependence and Governance|journal=Almqvist & Wiksell International}}</ref>
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