Internal and External Aspects of Development Plans and Performance in Aid-receiving Countries
external resources can be used by underdeveloped countries as a basis for a significant acceleration of investment and growth;
the maintenance of higher growth rates requires substantial changes in the structure of production and trade;
external capital can perform a critical role in both resource mobilisation and structural transformation;
the need for concessionary aid declines once these structural changes are well under way although further capital inflow may be needed.
KeywordsForeign Exchange Saving Rate Capital Requirement External Resource Capital Inflow
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