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Friday, August 31, 2007
Aid (or "international aid", "overseas aid", or "foreign aid", especially in the United States) is the help, mostly economic, which may be provided to communities or countries in the event of a humanitarian crisis or to achieve a socioeconomic objective. Humanitarian aid is therefore primarily used for emergency relief, while development aid aims to create long-term sustainable economic growth. Wealthier countries typically provide aid to economically developing countries.
Sources and distribution
(The use of the term "given" in this section is potentially misleading. Almost all aid from multilateral donors (e.g. World Bank) is in the form of loans.)
Project aid: Aid is given for a specific purpose e.g. building materials for a new school.
Programme aid: Aid is given for a specific sector e.g. funding of the education sector of a country.
Budget support: A form of Programme Aid that is directly channelled into the financial system of the recipient country.
Sectorwide Approaches (SWAPs): A combination of Project aid and Programme aid/Budget Support e.g. support for the education sector in a country will include both funding of education projects (like school buildings) and provide funds to maintain them (like school books).
Food aid: Food is given to countries in urgent need of food supplies, especially if they have just experienced a natural disaster.
Technical assistance: Educated personnel, such as doctors are moved into developing countries to assist with a program of development. Can be both programme and project aid.
Emergency aid: This is given to countries in the event of a natural disaster or human event, like war, and includes basic food supplies, clothing and shelter. Types of aid
Official Development Assistance (ODA): Aid provided to Part I DAC list of aid recipients developing countries with the clear aim of development.
Official Aid (OD): Aid provided to Part II DAC aid recipients. It includes both countries not considered a developing country and contributions to international organizations. (See ODA)
Other Official Flows (OFF): All other official transactions to DAC list of aid recipient countries not covered by the previous two. (See ODA) Aid terms related to DAC members
Tied aid: Aid that has geographical limitations on where it is used.
Disbursements: Aid that is actually provided, as opposed to the amount promised (commitment). Other Terms
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