Improving the efficiency of aid through economic theories

What is it about?

The article provides a linkage between the provision of sustainable development assistance and economic theories. It simply says developing countries are very poor so they can divert aid provided for low carbon content to other burning issues since there is information asymmetry (no perfect monitoring by aid providers). To avoid the inefficiency caused by poor monitoring mechanisms and abuse of aid, economic theories can be applied to allocate sustainable development assistance efficiently.

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Why is it important?

It provides an option of managing aid by aid providers which reduces monitoring costs. The suggested "post-cure" financing model provides an effective way of providing aid to developing countries.