Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 22

Realizing that poor countries must solve many problems at once has shifted donors away from the idea of giving multiple small payments to the idea of a "Big Push." This Big Push entails giving a very large sum of money that could be used to fix multiple problems at once. In fact, the amount of money required might be so large that other countries might be the only ones who could afford the donation. What are the trade-offs associated with this idea?