Foreign aid serves crucial gap-filling functions in Less Developed Countries (UDCs - likely meant to be LDCs or UDCs meaning Under-developed countries). It can help bridge the gap between required investment and domestic savings (Savings gap), the gap between necessary imports and export earnings (Foreign Exchange gap), and the gap in access to advanced knowledge, techniques, and organizational capabilities (Technological and Management gap).
Foreign aid can perform the following gap filling functions in UDCs. I. Savings gap II. Foreign Exchange gap III. Technological and Management gap IV. Natural Resource gap
Asked in TNPSC CS Prelims 2014 · Topic: Sustainable Economic Development (Financing Sustainable Development: Green Bonds, Climate Finance, ODA)
More Economic Development questions
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