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An Updated Analysis of Weisskopf's Savings‐Dependency Theory

After 25 years of putative capitalist development and modernization, since Thomas E. Weisskopf's studies on the savings-dependency issue, the success of foreign aid to developing nations remains questionable at best. With a mix of all-to-often corrupt authoritative governments and a seemingly endless flow of foreign aid, the advancement of many developing nations was hindered from the start. The analysis of this paper questions the reasons customarily given for the laggard status of the developing countries and examines the degree to which the lag is due to the impact of foreign aid. Copyright 2001 by Blackwell Publishing Ltd