Foreign Aid Practices

There are several types of foreign aid practices, which are categorized according to the sources of the aid as well as the methods used to allocate it:
Bilateral Aid is assistance that the government of one country gives directly to the government of another. In addition to national governments there are a handful of governmental aid agencies, such as the Department for International Development (DFID), and United States Agency for International Development (USAID), that also participate in the allocation of bilateral aid.
Multilateral Aid is given by a government to an organization dedicated to distributing the aid, such as the International Monetary Fund (IMF), the World Bank, and the European Development Fund. These organizations are directly controlled by the contributing nations.

Multilateral aid can also be given by for-profit corporations and individuals, in the form of philanthropic donations.
Types of Foreign Aid

There are many types of foreign aid, categorized according to purpose:
Development Aid is primarily given by developed nations to offer financial and social support to developing and undeveloped nations. The long-term purpose of developmental aid is often to eradicate poverty.
Humanitarian Aid is given to nations whose citizens are suffering from a disaster such as flood, famine, earthquakes, or war. The primary goal of humanitarian aid is to offer immediate relief from difficult or dangerous circumstances and living conditions.
Tied Aid
Emergency Aid
Untied Aid
Project Aid
Food Aid
Program Aid

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