Outline the different types of aid. Discuss the view that foreign aid benefits the donor more than the recipient.

One of the key aspects of economics that can define a country's market is aid received from various sources. Even though aid is generally received by developing countries, most countries in general have at some point or another been the recipient or the donor. Aid is described as help or assistance for support and relief. In economics however, it can mean much more than that, as there are times when aid can transform a nation.

There are several different types of foreign aid with the most common being bilateral, multilateral, official and tied aid. First of all, the type of aid that is most common is bilateral aid which is basically direct aid from one nation to another. Multilateral aid on the other hand is similar but the donors can be numerous. This type of aid can also come from authorized organizations such as the World Bank and International Monetary Fund. Official aid is usually funded by the government of a country and it is recognized by recipients. Tied aid is quite unique from the other common types of support as it involves poor countries buying goods and services from donor countries at higher prices in exchange for the donations received by the recipient.

There are also other types of aid such food and technical aid as well as debt cancelling. Technical aid is very useful for developing countries since it can help certain infrastructures. Food aid on the other hand can eradicate poverty and contribute drastically in emergencies and relief. Debt cancelling is also one critical type of relief since it can get a country on its feet. However, this strategy can be a very long term process as debt cancelling can take years and the interest that the donor country receives can be very high.

Another type of aid that is very common is NGO's that exist in almost every country. Agencies such as Oxfam, Red Cross, Save the Children and Care are examples of organizations that are usually privately run and help out in improving the lifestyles and well being of the