abhishreshthaa
Abhijeet S
Multilateral Aid
Multilateral means "many sides". Here organisations that involve many countries, give help. This aid is run by groups such as the World Health Organisation (WHO) and United Nations Educational, Scientific and Cultural Organisation (UNESCO) - both of which are part of the United Nations (UN).
Economic aid for development by the developed countries is based on political affinities with the recipient country. Such an aid may be bilateral or multilateral. Multilateral aid is through international financial institutions for use in the import of goods and services from any country. Multilateral aid is usable anywhere and hence its rate of utilization will be high.
Bilateral Aid
Bilateral means "two sides". This type of aid is from one country to another. An example would be Britain giving money and sending experts to help build a dam in Turkey. Quite often bilateral aid is also tied Aid. This is the most common type of aid. In this type of aid the giving (or donor) country also benefits economically from the aid.
This happens, as the receiving country has to buy goods and services from the donor country to get the aid in the first place. In building a dam, for example, the Britain may insist that their companies, experts and equipment are used.
Whether the aid is given may depend on the receiving country agreeing to buy e.g. military jets from the donor. Bilateral aid is from one government to the other. Generally bilateral aid constitutes the bulk of the total aid granted to any country. It may be tied or untied.
Multilateral means "many sides". Here organisations that involve many countries, give help. This aid is run by groups such as the World Health Organisation (WHO) and United Nations Educational, Scientific and Cultural Organisation (UNESCO) - both of which are part of the United Nations (UN).
Economic aid for development by the developed countries is based on political affinities with the recipient country. Such an aid may be bilateral or multilateral. Multilateral aid is through international financial institutions for use in the import of goods and services from any country. Multilateral aid is usable anywhere and hence its rate of utilization will be high.
Bilateral Aid
Bilateral means "two sides". This type of aid is from one country to another. An example would be Britain giving money and sending experts to help build a dam in Turkey. Quite often bilateral aid is also tied Aid. This is the most common type of aid. In this type of aid the giving (or donor) country also benefits economically from the aid.
This happens, as the receiving country has to buy goods and services from the donor country to get the aid in the first place. In building a dam, for example, the Britain may insist that their companies, experts and equipment are used.
Whether the aid is given may depend on the receiving country agreeing to buy e.g. military jets from the donor. Bilateral aid is from one government to the other. Generally bilateral aid constitutes the bulk of the total aid granted to any country. It may be tied or untied.