A note on foreign assistance and the capital requirements for development
An examination of some dimensions of "efficiency" in aid giving. The Memorandum is an exercise in optimization, given the need to conserve resources in the donor, and given the objective of raising real national income in the recipient. On grounds of efficiency it is desirable to maximize the grant equivalent to the recipient per dollar grant equivalent from the donor. The view adopted in the present study is that the proper application of external resources will raise output in most poor countries by more than the same resources will raise output in the developed countries.