Types of Aid

Bi-lateral aid: From one country to another

Multi-lateral: Channelled through international bodies

Project Aid: Direct financing of projects for a donor country

Humanitarian Aid: Emergency disaster relief, flood aid, refugee relief and disaster preparedness

Soft Loans: A loan made to a country on a concessionary basis with a lower rate of interest.

Tied Aid: i.e. projects tied to suppliers in the donor country

Debt Relief: cancellation, rescheduling, refinancing or re-organisation of a country's external debts

There are multiple forms of aid, and the effectiveness of each is studied in order to understand and establish what is the best form and what areas should be invested in. [18]

Donor Countires

Bilateral Aid

Multilateral Aid (ODA)

Aid (ODA) flows through multilateral (bi-multi) Donor contracts an agency to deliver a specific project on its behalf in a recipient country.

Multilateral Agencies

Multilateral Outflow

Recipient Countries

Multilateral Aid is aid from international organisations which receive money from several countries. It is less tied to a political agenda and self-interest. Governments are known to focus their aid on specific countries which they have strategic ties with. [18]