Types of AID

Bilateral Involves governments in the developed world giving aid to governments of the developing world. Known as ‘official development assistance’. In the UK it is administered by DFID – department for international development

Multilateral Invloves the UK donating money (40% of DFID budget) to IGO’s for them to distribute the AID as they wish. Eg. World Bank – to give loans to developing nations to build infrastructure E.g. UN get a small amount of AID from the UK in this way (£250 million out of the DFID budget of £1990)

Commercial Banks These lend money to developing countries at commercial rates of interest. In 2001 for example, private finance from UK banks totalled 1.4 billion

Non- Governmental Organisations NGO’s include charities like Oxfam and Save the Children, which aim to raise donations from the general public of developed nations This money is now matched by DFID. Roughly £50 million of AID was given by NGO’s in 2005 (half of that was given by DFID) Since 2007, DFID has given more ‘bilateral aid through NGO’s £317 million as they see NGO’s as the best way of getting money into countries at a grass roots level

Emergency AID Humanitarian relief that is raised in response to specific circumstances, such as natural disasters (e.g. Tsunami in Japan) This can come from Bilateral sources and often NGO’s – that do specific appeals – Disaster Emergency Committee