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Give the problems of external sources of revenue.

Give the problems of external sources of revenue.

Answers

Martin
-Donors conditions must be fulfilled before funds are released.In the recent past recipient nations were compelled to recent past recipient nations were were economy and accept political pluralism.This is affecting the independence of these sovereign states .

-Loans are issued at high rates which make servicing them a burden.

-Government debts have increased making it difficult to pay which attracts heavy penalties hence debt crisis.
Foreign aid comes with conditions which may benefit the donor country more than the recipient e.g selling goods to the recipient country at a higher price or proving labour.

-The amount given depends on the generosity of donors therefore it is not a reliable source of revenue.
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marto answered the question on April 9, 2018 at 12:41

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