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Advantages Of Bilateral Foreign Aid

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FOREIGN AID It is an economic instrument used by the states to promote their national as well as international interests. It includes the transfer of money,services, goods, technical assistance and other development assistance. etc usually from the donor countries to the recipient countries i.e. from rich countries to the poor countries. Because, their economic and political objectives depend on having a stable international system and the supports of other countries. It is not a new instrument because it has been using by the states from the earlier times. In the earlier times, it was used by the states for the humanitarian purpose like they were helping other friendly states or those states who suffered from the natural calamities like earthquakes,…show more content…
FA can be Bilateral Foreign aid or Multilateral Foreign aid: bilateral FA is directly negotiated between the two countries. On the multilateral foreign aid is regulated through various international groups and institutions like IMF, world bank that are then used to reduce poverty in developing nations..bilateral foreign aid is better than the multilateral foreign aid because most of the aid comes from the bilateral agreements and only few amount of aid comes from the multilateral agreements. Moreover, this aid is not equally distributed among all countries as it is concentrated only in few areas. Morgenthau has divided FA into 6 types on the basis of the purpose and on the basis of the nature that donor gives to recipient: 1. Humanitarian aid : it is the aid given by a nation to those nations who fall in victim to natural calamities earthquakes, floods, famines, epidemics.it is not only givn by the governments. It is also given by different voluntary organisations in different parts of the world.thus plays a very important role to rebilds thei…show more content…
Subsistence aid: it is given by the developed counties to those which do not possess sufficient resources to maintain their territories . For example US supports to Jordan 3. Bribes and pension aid: it is prevalent in the 19th century.under this aid the governments paid a pension or bribe to the foreign minister or ambassador for the services rendered to them. 4. Military aid: it covers not only giving the weapons but also the sale of military goods at lowest rates. For example India is one of the biggest importers of Israel defensive weapons. 5. Prestige aid: The purpose of Prestige Aid is to enhance the prestige of donor countries as well as the recipient countries.certain projects are undertaken in a developing country not because they are economically or military useful but they enhance the international prestige of the donor or increase the status of recipient in international elations 6. Economic aid: it started after world war 2. The purpose of economic aid is to enhance the economically weak countries by giving them monetary aid. PURPOSE AND IMPACT OF FOREIGN
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