PPRuNe Forums - View Single Post - Britain's £12bn Overseas Aid Programme
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Old 8th Jun 2011, 19:41
  #13 (permalink)  
Grimweasel
 
Join Date: Nov 2001
Location: uk
Posts: 611
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Basic Macro-Economics really. Have a look at GDP and it's make up!

C+I+G+(X-M)=AD=Y

If the consumer is not spending (cause he's broke) and there is little investment and the Government has already spent too much then we need to boost eXports to boost GDP. It's all about sustaining future growth. The Foreign investment would have no doubt has an Investment Appraisal completed which points to spend now and reap the benefits later in increased X-M.

That's the theory anyway - depends how much debt the looming leg 2 of the recession saddles us with!!
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