Less-developed Countries (LCDs) are caught in a vicious circle of poverty. For output to increase, they must build up capital. To build up capital, they must save and consume less that what they are producing. However, because they ate poor, they have little or no extra output available for savings as it must go toward feeding and clothing the current generation. Thus, they are destined to remain poor forever. How should developed-countries and international institutions assist LCDS to develop and are there unintended consequences?