4.6. The Role of Foreign Aid and Multilateral Development Assistance

Foreign Aid

Non-commercial, concessional assistance given to a foreign country.

Official Development Assistance (ODA)

Occurs when the government of a donor country gives aid to a recipient country.

Aid by NGOs

Occurs when a donor organisation that is separate from governments gives aid to a recipient country.

Humanitarian Aid

Aid given to alleviate short-term suffering.

Food Aid

Aid given as food.

Medical Aid

Aid given as medical supplies

Emergency Relief Aid

Aid given during a humanitarian emergency, including temporary shelters, clothing, fuel etc.

Development Aid

Aid given to alleviate poverty in the long-term

Project Aid

Aid given for a specific development project.

Programme Aid

Aid given for use in a specific sector of the economy.

Technical Assistance Aid

The provision of technical advice by specialists in a LEDC

Tied Aid

Aid given to a recipient country on the condition that a portion of these funds are used to buy goods and services from the donor country.

Bi-lateral Aid

Aid given from one donor country to a recipient country.

Multi-lateral Aid

Aid given from an organisation made up of governments from lots of countries (such as the IMF or the World Bank) to a recipient country.

Trade, Not Aid

The idea that trade and export growth should be the basis for economic development, and aid should be reduced or abandoned.

Trade and Aid

The idea that trade (export growth) and aid can both form bases for economic development.

Aid for Trade

The idea that a portion of aid should be used to support the development of infrastructure that enables a LEDC to achieve export growth, hence development.