Raghuram Rajan writes on Aid and Growth: The Policy Challenge in Finance and Development. He remains sceptical:
Unfortunately, I'm not sure that even if each micro-intervention works well by itself, they will all work well together. Interventions could affect each other and get in each other's way or vie for the same resources. They could also have adverse spillover effects on the rest of the economy.
Rajan blames a version of the resource curse. Read more about that idea here.
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