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Quotation of the Day…

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… is from page 38 of William Easterly’s outstanding 2001 book, The Elusive Quest for Growth [2]:

People respond to incentives.  Think of the incentives facing the recipients of foreign aid.  They invest in the future when they get a high return to their investments.  They do not invest in the future when they do not get a high return to their investments.  There is no reason to think that aid given just because the recipient is poor changes the incentives to invest in the future.

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