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What are the consequences of dependence on foreign aid?

Updated: Nov 14, 2023

Author: Beverly Masita


Country: Kenya





SUMMARY

Aid dependence has the potential to overkill institutions and weaken their capacity. In turn, this diminishes accountability over decisions and national policies, creating revenue instability, obstructing resource allocation and sustainable development goals. The reduced tax effort that results from aid can further augment these challenges resulting in a possible erosion of economic self-reliance.





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