In his book The Elusive Quest for Growth, development economist William Easterly discusses the relationship between foreign aid
and investment in poor countries. He posits that to establish the effectiveness of aid in promoting investment, two tests should be passed: First, there should be a positive statistical association between aid and investment; second, aid should pass into investment 1 for 1, that is, a 1 percent (of GDP) increase in aid should result in a 1 percent (of GDP) increase in investment. Using a data set of 88 countries from 1965 to 1995, he finds that only 17 of 88 countries pass the first test, and of them, only 6 pass the second. Based on the information in the chapter, and perhaps your own reading, explain why foreign aid designed to spur investment usually does not work.
Very little of its land is used for farming. Nomads For centuries, Arab herders called Bedouins have adapted their lives to arid land. Bedouins are nomads. Because there is little farmland, nomads move from place to place instead of settling permanently.
<span>This is an example of ethnocentricity. Ethnocentrism means that someone is judging a different culture based on the standards and values of the observers culture. Generally, someone who is exemplifying ehnocentric behavior is judging other groups in relevance to their own group.</span>
