In order to improve economic growth, most developing and less developed countries have sought assistance and borrowed huge sums of money from international organizations, for example the International Monetary Fund (IMF), the World Bank (WB). , developed countries and other donors. However, they still failed to raise their economy. Easterly (2002), a former economist at the World Bank and professor of economics at New York University, argues that aid and loans are not effective in promoting economic growth in developing countries. It also provides reasons and uses several national examples. His presentation ends with the conclusion that adjustment loans and foreign aid make little contribution to the economies of developing countries due to the lack of incentives for both donors and recipients. The purpose of this article is to complement and critique Easterly's argument that adjustment loans fail to stimulate the economies of developing countries. In the first part of this essay, we will briefly summarize Easterly's idea; while the second part will discuss its strengths and weaknesses. Several complementary notions to support Easterly's argument are presented in this study. Easterly (2002) noted that there have been some successes in adjustment lending in some countries. However, he identified that more countries had failed. These failures are due to two main reasons. First, this is because the recipient countries have not made any policy adjustments to reduce inflation. Second, it is because the government was unable to control inflation during the transition period. Furthermore, other policies he revealed are high black market bonuses, budget deficit policies and negative real interest. Easterly also acknowledges the donor characteristics that triggered the recipients' competition middle of paper...... id are not comprehensive enough nor are they consistent with his pessismistic view of aid. Therefore, his chapter is still valuable and relevant in the current situation where many developing countries are still heavily dependent on foreign aid. Works Cited Booth, P 2012, “Does foreign aid make the poor poorer? », Economic Affairs, Wiley Online Library, Vol. 32, no. 1, p.1,.Easterly, W 2002. “The loans that were, the growth that was not”, The Elusive Quest for Growth: Adventures and Misadventures of Economists in the Tropics”, The MIT Press, Cambridge , Massachusetts, pp .101-120 Moyo, D 2009, “Why foreign aid hurts Africa”, The Wall Street Journal, accessed February 7 2012,.