Editing Development aid (section)

=== Conditional aid ===
A common criticism in recent years is that rich countries have put so many conditions on aid that it has reduced aid effectiveness. In the example of [[tied aid]], donor countries often require the recipient to purchase goods and services from the donor, even if these are cheaper elsewhere. According to a 1991 report for the OECD, tied aid can increase development aid project costs by up to 20 or 30 percent.<ref name=":18">{{Cite web |last=Jepma |first=Catrinus J. |date=1991 |title=The tying of aid |url=http://www.oecd.org/dev/pgd/29412505.pdf |url-status=live |archive-url=https://web.archive.org/web/20160413105346/https://www.oecd.org/dev/pgd/29412505.pdf |archive-date=13 April 2016 |access-date=26 January 2021 |website=OECD}}</ref>

Other conditions include opening up the country to foreign investment, even if it might not be ready to do so.<ref>{{Cite web|url=http://www.globalissues.org/TradeRelated/Debt/USAid.asp|title=US and Foreign Aid Assistance|publisher=Global Issues|year=2007|access-date=21 February 2008}}</ref>