It has been argued that tied foreign aid leads to inefficiences in the recipients country's economy. Explain how this could occur.
-Foreign aid may lead to inefficiencies if the gov't doesn't have infrastructure to properly distribute money
-more money may cause corruption
-food-aid subsidies can hurt farmer's incomes by diluting their profits
-private sector incentives won't be as lucrative
-gov't savings incentives will be lower bc they're reliant on donnor's