Encyclopedia of Global Justice

2011 Edition
| Editors: Deen K. Chatterjee

Foreign Aid

  • Christopher Kilby
Reference work entry
DOI: https://doi.org/10.1007/978-1-4020-9160-5_93

Foreign aid is the transfer of money, goods, or services from a donor to a recipient in another country (excluding remittances between family members). To qualify as aid, the transfer must be a donation or grant or be on terms more favorable than commercial transactions. The transaction may be direct between individuals or involve intermediaries such as private charities, foundations, nongovernmental organizations (NGOs), governments or intergovernmental organizations. Private aid includes voluntary donations from individuals, corporations, and foundations, usually to religious organizations, charities, or NGOs that either work directly in developing countries or fund counterpart organizations. In contrast, official aid is government tax revenue used to fund bilateral or multilateral aid programs. Bilateral aid is typically government to government while with multilateral aid many donors contribute to an intergovernmental organization that distributes aid.

Functionally, aid can be...

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Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  • Christopher Kilby
    • 1
  1. 1.Department of EconomicsVillanova UniversityVillanovaUSA