economic aid


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economic aid

the provision of foreign exchange and other forms of assistance (e.g. skilled technicians and scientists, machinery and equipment) to, in the main, DEVELOPING COUNTRIES in order to accelerate their economic development programmes. Such assistance ‘tops up’ the domestic savings of recipient countries as well as providing techniques, expertise and managerial resources that would otherwise be unobtainable locally Official development assistance (ODA), on highly concessionary terms, is the principal form of capital transfer to the poorest countries. Official aid is extended by member countries of the Development Assistance Committee (DAC) of the ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD), on both a

bilateral (country to country) and multilateral basis through the DAC, the WORLD BANK, the EU European Development Fund and the European Investment Bank.

Multilateral aid tends to be earmarked for ‘big-ticket’ programmes, such as establishing a new industry in a recipient country building a dam or road network system and investments in healthcare and education. Bilateral aid may be provided on an open-ended basis, but much of it tends to be ‘tied’ to the supply of specified goods from companies located in the donor country as a means of boosting that country's exports. Aid may be provided ‘freely’, without interest charges or an obligation to repay; on a ‘soft loan’ basis - low interest charges and a long redemption period; or may be subject to more onerous commercial terms.

Although not officially classified as economic aid, inward foreign direct investment by MULTINATIONAL COMPANIES (see FOREIGN INVESTMENT) has been an important source of new capital and technological transfer for many developing countries. See INTERNATIONAL DEBT, ECONOMIC DEVELOPMENT.

References in periodicals archive ?
Specifically, it remains unclear if the provision of economic aid conditional on the presence of military assistance helps countries grow, and if these effects differ during times of war and peace.
Figure-I: A graphical presentation of US Economic aid to Israel
Economic aid was associated with an increased likelihood of transition to multi-party elections, democracy aid was not.
As per the report of a weekly magazine, India Today, the economic aid provided by Britain to India, since 2005 is used in poverty eradication programmes in the country.
But a turn in his North Korea policy would undoubtedly invite severe criticism from his conservative supporters who believe North Korea diverted massive economic aid it received from South Korea's two previous liberal administrations for the development of nuclear weapons and missiles.
Germany, one of Jordan's main financial supporters, extended economic aid to the Hashemite Kingdom amounting to 320 million dollars between 2002 and 2010, excluding German aid through the European Union, the Jordanian minister said.
President Barack Obama will later unveil an economic aid program for Egypt and Tunisia as part of an effort to support democratic reform in the Middle East and North Africa.
S&P are of the view that the economic aid package, which it understand will be comprised of donations by GCC members, will not immediately affect Bahrain's and Oman's ratings or ratings outlooks.
The simple answer is that US economic aid to Egypt, which amounted to $455m in 2007, translated to only $6 per capita.
Sources said that Joe Biden will share with Pakistani leaders the outcome of his talks with Afghan leaders and will offer more military and economic aid to the insurgency-hit country amidst complaints of insufficient and delay in arrival of aid.
8 billion package, including $913 million in economic aid, is destined to support the impoverished Caribbean nation, which remains in dire straits after the January earthquake, which left more than 1.
International Resource News-5 April 2010-Japan plans economic aid to countries with strong rare metal resources(C)2010 ENPublishing - http://www.

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