mostly because developing countries have been given too little relief too slowly in the past. For extremely poor countries, it is practically impossible to reduce poverty and borrow at the same time to improve the economy. Eventually, lack of preparation on the part of the borrowers usually leads to ineffective use of financial resources, which in turn only jeopardizes country's future ability to repay debt.
Elements of Supply Side Factors of Granting Aid
给予援助的供给方因素的影响因素
Often times, it is questioned why donors and multilateral financial institutions still keep lending regardless of poor credit quality of borrowing countries. Although Pakistan has been efficient in returning IMF loans, it has faced a lot of difficulty dealing with other lenders, recently asking for a debt write-off even. Then why do these lenders still continue to lend to countries that have displayed such negative growth, bad policies and accumulating levels of debt? If they continue to attempt to "fill in the financing gap" in these countries, unsuccessfully as has happened before, then this will only add on to their burden of having to lend in the future again. However, although it seems quite far-fetched, donors may just want to assume the role of helping balance the level of assets between developed and developing countries. "The official lenders may want to keep lending even when the loans do not promote development because multilateral and donor agencies are often rewarded for volumes of assistance rather than results," (Easterly, 2002). In some cases, lenders might want to keep lending to countries like Pakistan in the hope that this might prevent borrowers from defaulting and thus not being able to pay back previous loans or on other creditors. However, this eventually fails the purpose of lending by multilateral financial institutions, such as the IMF and World Bank. For example, "The World Bank (1998b) mentioned that it had given loans HIPCs AND DEBT RELIEF 1681 to finance the same agricultural policy reforms in Kenya five separate times," (Easterly, 2002). Due to such inefficiencies, suppliers of loans to borrowing countries such as Pakistan must also partially take the blame for financing governments with poor policies that are detrimental to their own citizens.
In defense of suppliers such as the IMF and World Bank, USGAO (2000), refers to reasons why donors are not to be blamed, as most borrowers would prefer to do. Suppliers of loans must keep in mind that political leaders of borrowing countries cannot be easily bypassed. Conflicts have to resolved with the upper level staff of a borrowing country, otherwise conflicting objectives regarding the same financial resources only worsens the economic situation. Donors must be willing to align their contributions with the country's priorities, which should be safe-kept by the political leaders of the nation. Many argue that too many conditionalities and terms of loan agreements only delay and hurt the debt relief initiative, and eventually countries are unable to pay back their loans on time. However, multilateral institutions respond by saying that they cannot compromise quality in order to meet a time frame requirement.
Aid and Aid Dependency Experiences of Different Classifications of Economies
不同类型经济体的援助和援助依赖经验
Aid has become synonymous with economic-buttressing. Over the course of last
