Editing Development aid (section)

== Discussions on favourable impacts ==
Research has shown that development aid has a strong and favorable effect on economic growth and development through promoting investments in infrastructure and human capital.<ref name=":19" /> According to a study conducted among 36 [[Sub-Saharan Africa|sub-saharan African countries]] in 2013, 27 out of these 36 countries have experienced strong and favorable effects of aid on GDP and investments.<ref>{{Cite journal |last1=Juselius |first1=Katarina |last2=Møller |first2=Niels Framroze |last3=Tarp |first3=Finn |date=2013 |title=The Long-Run Impact of Foreign Aid in 36 African Countries: Insights from Multivariate Time Series Analysis*: Long-run impact of foreign aid in African countries |url=http://www.wider.unu.edu/sites/default/files/wp2011-051.pdf |journal=Oxford Bulletin of Economics and Statistics |language=en |volume=76 |issue=2 |pages=153–184 |doi=10.1111/obes.12012 |s2cid=53685791 |hdl-access=free |hdl=10.1111/obes.12012}}</ref> Another study showed that aid per capita supports economic growth for low income African countries such as Tanzania, Mozambique and Ethiopia, while aid per capita does not have a significant effect on the economic growth of middle income African countries such as Botswana and Morocco.<ref name=":20">{{Cite journal |last1=Lee |first1=Jin-Sang |last2=Alemu |first2=Aye Mengistu |date=27 November 2015 |title=Foreign aid on economic growth in Africa: A comparison of low and middle-income countries |journal=South African Journal of Economic and Management Sciences |language=en |volume=18 |issue=4 |pages=449–462 |doi=10.4102/sajems.v18i4.737 |issn=2222-3436 |doi-access=free}}</ref> Aid is most beneficial to low income countries because such countries use aid received for to provide education and healthcare for citizens, which eventually improves economic growth in the long run.<ref name=":20" />

Some [[Econometrics|econometric]] studies suggest that development aid effectively reduces poverty in developing countries.<ref>{{Cite journal |last=poverty reduction |first=foreign aid |date=January 2019 |title=Foreign aid and poverty reduction |journal=Cogent Social Sciences |volume=5 |issue=1 |doi=10.1080/23311886.2019.1625741 |s2cid=189994202 |doi-access=free}}</ref>

Other studies have supported the view that development aid has no clear average effect on the speed with which countries develop.<ref name="brookings.edu" /><ref name=":52" />

Dissident economists such as [[Peter Thomas Bauer|Peter Bauer]] and [[Milton Friedman]] argued in the 1960s that aid is ineffective: "an excellent method for transferring money from poor people in rich countries to rich people in poor countries."<ref>{{Cite web |title=The sad loss of Lord Bauer |url=http://www.la-articles.org.uk/bauer.htm}}</ref>

In economics, there are two competing positions on aid. A view pro aid, supported by [[Jeffrey Sachs]] and the United Nations, which argues that foreign aid will give the big push to break the low-income [[poverty trap]] poorer countries are trapped in. From this perspective, aid serves to finance  "the core inputs to development – teachers, health centers, roads, wells, medicine, to name a few". (United Nations 2004).<ref name=":0">{{Cite journal |last=Qian |first=Nancy |date=3 August 2015 |title=Making Progress on Foreign Aid |journal=Annual Review of Economics |language=en |volume=7 |pages=277–308 |doi=10.1146/annurev-economics-080614-115553 |s2cid=33135898}}</ref> And a view that is skeptic about the impacts of aid, supported by William Easterly, that points out that aid has not proven to work after 40 years of large investments in Africa.<ref name=":0" />