Good aspects of foreign aid

Technical assistance promotes the development of the required skills and technology.
Foreign aid is desirable as it could lead to the creation of employment opportunities.
Multi-lateral aid i.e. Aid from international aid agencies like USAID is good. This is because this aid is often given at low rates of interest.
Foreign aid is also desired because it is instrumental at encouraging capital inflow especially by foreign investors.
Trade assistance to LDCs helps in enabling poor countries to plan adequately during the bad year, especially when their performance in external trade is poor.
As far as aid tying is concerned, poor countries can avoid utilising the finances in a wasteful manner.
Foreign aid to developing countries, indeed, leads to the generation of external economies of scale in the respective countries.
It fills the savings gap. The required investment which could be generated from local savings always exceeds the available local or domestic savings.
Foreign aid also helps in the exploitation of the domestic idle resources in a bid to expand the country's Gross Domestic Product (GDP).
Adequate infrastructure is vital for any development programmes in any given nation. Foreign aid leads to infrastructural development.
It could also be very instrumental in rectifying the persistence Balance of payment problems.