What are the three basic criticisms of foreign aid to DVCs?

(1)Dependency and incentives: A basic criticism is that the foreign aid may create dependency rather than self-sustaining growth. This may encourage DVCs to ignore necessary reforms.(2)Bureaucracy and centralized government: The consequence of giving aid to the governments of the DVCs is that it results in a government bureaucracy with centralized government power over the economy.(3)Corruption and misuse: Some estimates suggest that 10 to 20 percent of foreign aid gets diverted to the bank accounts of the DVC local government officials. Also, many consultants and multinational corporations from industrially advanced countries (IACs)benefit from the foreign aid.