A guide through the maze of aid jargon
Official development assistance consists of grants and loans at concessional rates (low interest arid long term) to promote economic developrnent and welfare. Not included: military aid, batik loans at commercial rates and grants from non-government agenci es.
Bilateral aid is provided directly by a donor to a recipient country. About 70% of all official aid.
Multilateral aid is channelled via international organisations such as the UN agencies and the World Bank. About 30% of all official aid.
Tied aid means that goods and services must be procured in the donor country; untied aid may be used to ‘shop around’ for the best deal on the open market. About half of all official aid is tied.
Project aid is for clearly defined projects, e.g. roads, water supplies and health facilities. This form of aid is attractive to donors because they can exercise greater control over its use. About 65% of all official aid.
Programme aid is non-project development assistance, usually to help countries out of balance of payments difficulties, This form of aid is most attractive to recipient countries because of its flexibility. About 35% of all official aid.
Technical assistance involves the provision of development-oriented skills by experts, the supply of relevant equipmerit and the training of local technical personnel. About 25% of all bilateral aid.
Food aid consists of cereals and dairy products from food-surplus countries, sent niainly to Egypt, Bangladesh, Indonesia and India. 70% is sold locally and used to support government budgets; 20% is used as project aid; 10% is used for emergency aid. Amounts to 11% of total official aid.
Emergency assistance is aid to people (e.g. refugees) in countries suffering from natural disasters, wars or other major Lipheava Is. About 5% of official aid.