General Aid

An aid between governments. Rich countries such as USA, Britain, France, Russia, Germany, often extend financial assistance to governments of poor countries.
USA Aims

  • For developmental purposes
  • Political identification with developing countries.
  • Enlargement/expansion of markets.
  • Development of the spirit of partnership.
    Features
  • High precaution on military aid.
  • The aid is usually purchase-tied.
  • Very sensitive to political atmosphere.

Britain -Britain gives Aid aiming at development in LDCs especially in the Commonwealth countries. It is also for identification with the commonwealth partnership and  the Promotion of neo-colonialism.

The Features are it is Commercial. Purchase tied (on raw materials especially). It is sensitive to any political instabilities.
France - Gives Aid aiming at political influence, Extension of the French ideology and culture and Solidarity in human struggle
Germany - Germany aid was the first and overall aid given in the 1960s. The aims a re Political as well as export oriented and the development of solidarity with developing nations. The main features are that it ia mainly project-tied.
China and Russia - Aims are to do with Assistance in projects, Political identification, Military show as well as Solidarity with former partners
Multi-national Aid
This is foreign assistance from international donor agencies and institutions such as:

  • IDA - International Development Association/Agency
  • IFC - International Fund for Co-operation
  • IBRD- International Bank for Reconstruction and Development, now popularly known as World Bank.
    Features
  • They often lend to governments.
  • They also lend to private investors in LDCs.
  • Promotion of markets.
  • Mainly influenced by USA and Britain.
  • High interest rates but this is limited.

IBRD. This was formed after World War II to assist recovery in the rich and poor nations, in Europe and elsewhere, and more particularly countries that were severely affected by the war. IBRD is commonly referred to as the World Bank. The bank sends experts who first analyze the targeted projects and have to confirm that the recipient country guarantees payment.

IDA. This was started in 1960 with a major objective of financing development projects.

IFC. The fund started in 1966 basically to lend to private investors and to expand market in developing countries.

Technical assistance. Technical assistance refers to any advice, expertise and technology from the rich to poor countries. It is aimed at:

  • Development of skills
  • Spread of technology. This can be through the outflow of machinery and basic training.
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