What is Foreign aid?
 
  At the most basic level, foreign aid is the money and resources given by the North, (or any other term that means "more developed") to the South or lesser developed countries. Aid ranges from bilateral aid (meaning government to government), tied aid (money given which will be used to purchase specific supplies/equipment from the donor country), to the dollars given to non-governmental and voluntary organizations that fund projects overseas.

The term "foreign aid" can be misleading as it conjures up a picture of cash flowing from the North to the South, a picture which is untrue. (More details on this cash flow are in the Foreign Aid Quiz.) The term also creates the false impression that this money is going to the very poorest nations in the world to alleviate poverty, to help people gain education, and access to clean water, sanitation and basic health services.

But, the good news is that some of that foreign aid actually is being used to help people help themselves. Find out more by checking out our Case Studies. Get more information about foreign aid by checking out Links. And finally, don't forget to test your knowledge in the Challenge Quiz.
 
 
back to overview