"here is a striking parallel between the problems caused by aid inflows and the "natural resource curse" (or "Dutch disease" as it is termed in Western countries), whereby inflows into one economic sector - typically oil or minerals - drive up economy-wide prices (including the exchange rate), rendering other sectors uncompetitive. Moreover, a great deal of this aid is delivered in kind and for strategic reasons, often supporting ineffective and kleptocratic governments." Kenneth Rogoff in Project Syndicate.