On a regional basis, the generation of additional imports is strongest in Latin America and East Asia and the Pacific, because growth in GDP has larger effects on imports there than in other regions, like North Africa, Sub-Saharan Africa, or South Asia. If foreign assistance is properly targeted to activities, such as agricultural research, that promote broad-based income growth in rural areas of developing countries, the gains to donor countries can be very large. While expanded export opportunities do not assure that a particular donor country captures the gains from the increase in exports, all donors have the potential to do so. Thus, in addition to increasing incomes in developing countries, foreign assistance to agriculture has the potential to benefit donor countries. Foreign assistance is not a drain on the national treasuries of donor countries, but rather a win-win proposition for both donor and recipient.
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