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absorption capacity

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  • Absorption capacity - usually means the ability of a country or organisation to receive aid and use it effectively. Developing countries often lack this capacity. For example, a country may receive enough money to enable all its children to attend primary school – but owing to a lack of teachers, lack of schools or a poor administrative system, it is impossible to spend this money in the short term. Work must first be done to train teachers, build schools and improve the efficiency of the system – thus raising the country's 'absorption capacity'.

    May 18, 2012