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 ?
Studies have analyzed the growth effects of economic aid, military aid, or conflict in isolation, but have yet to explore the simultaneous combination of all three.
military and economic aid for decades because its 1979 peace treaty with U.S.
Rather, if a country is even among the richest in the world but has got security and geostrategic significance for the US, it is likely to attract more US economic aid on account of these attributes.
The world looks to China - a major source of economic aid - to discipline Kim Jong Un regime for its latest nuclear test
Using OECD figures for aid flows into the 48 sub-Saharan African countries in the period 1991-2008, Dietrich and Wright found that democracy and economic aid had the following effects on five key indicators of democratic transition and consolidation.
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.
Summary: President Barack Obama will unveil an economic aid program for Egypt and Tunisia later as part of an effort to support democratic reform.
This is despite the Gulf Cooperation Council's (GCC's) March 10 announcement of a $20 billion economic aid support package over ten years, to be shared equally between the two governments.
In 2009 and 2010, the economic aid amounted to $250m, while military aid reached $1.3bn.
U.S Vice President Joe Biden arrived here on Wednesday for talks with Pakistani leaders on cooperation against the militants and more military and economic aid to the country, sources said.
An additional $4 billion is for the State Department to fund the "civilian surge," bringing economic aid to Afghanistan.
International Resource News-5 April 2010-Japan plans economic aid to countries with strong rare metal resources(C)2010 ENPublishing - http://www.enpublishing.co.uk

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