ABSTRACT
It is not easy to measure the capacity of poor countries to use aid to increase the rate of growth of output. Nevertheless, we believe that, over the next few years, around $1-1^ billion more public aid could be applied with considerable effect, mostly in India. But, for many recipients, improvements in the conditions and forms of aid might do more to raise the rate of economic growth than an increase in the volume of aid. More liberal trading policies on the part of rich countries would also, of course, assist growth: but, for most reci pients, such policies would not do a lot to reduce the need for aid.
