The severity of this problem has been exacerbated by the kinds of foreign
aid extended by agencies such as the World Bank, the IMF, and the
United States Agency for International Development. Frequently, this aid
is tied in ways that promote links with multinational enterprises, and in
the long run it contributes to the net outflow of capital. This problem is
vividly illustrated by the fact that the outstanding interest on the international
debt at" Third World countries is now greater than the capital originally
borrowed, and that their annual interest payments often exceed the
amount of incoming aid. It is estimated that Third World debtor countries
make net transfers of over $20 billion per annum. In other words, international
aid has resulted in their paying to the West much more than they
have received.
The severity of this problem has been exacerbated by the kinds of foreign
aid extended by agencies such as the World Bank, the IMF, and the
United States Agency for International Development. Frequently, this aid
is tied in ways that promote links with multinational enterprises, and in
the long run it contributes to the net outflow of capital. This problem is
vividly illustrated by the fact that the outstanding interest on the international
debt at" Third World countries is now greater than the capital originally
borrowed, and that their annual interest payments often exceed the
amount of incoming aid. It is estimated that Third World debtor countries
make net transfers of over $20 billion per annum. In other words, international
aid has resulted in their paying to the West much more than they
have received.
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