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Foreign aid is the important phenomenon of foreign policy of many states During World War 1, the most richest countries used of transferring Goods, funds, services with the other countries. The aid is also given in the form of loans, to reduce interest rate or to grants resources. Meanwhile as well as in World War 2, the process of giving aid was also on its peak, and the purpose behind it totally changed, as some aid was military assistance, some provide humanitarian and some fulfill the economic needs of the countries. Every developed countries make the chain of giving aid to all those developing countries who were in economic danger or were in bad resources. China, India, Brazil roughly 10% of aid provided to the developing countries in 2008. The U.S Marshall Plan was firstly used the aid for Foreign policy purpose. Besides this, Soviet Union also performing their aid plan for the extention of Communism. In 2001, the incident “War on Terror” completely changed the US policies and its purposes of giving aid. If we talked about the aid process in Geopolitical term, it includes both domestically and internationally aid, which main objective is to interact with the other countries of the world. What is the basic goal of the donor behind giving aid? May be the donor have the multiple goals in their mind of offering aid to developing countries. The author said, aid would be given more than one or two goals, as its Geopolitical interest in it, commercial interest and recipient’s needs. Discuss about the ways of analyze the aid, firstly see its policy instruments, their domestic process shows its goals of offering aid. Strategies of Foreign Aid, the goals transfers from one country to another could be on risk, the question is Aid can actually increase donor’s National security or not?. It’s fact that, if the aid is properly be used in effective way then the State should chosen the best circumstances of their benefits. Different types of aid with the achievement of different types of goals. Morgenthau explained the types of goals as humanitarian, military, economic, subsistence, bribery, to achieve all these you have to used different instruments. How substitutable one donor is for another? Author argues if the recipient country has many ways to obtain resources which is given by the donor, then aid would be less influential. Donor countries also faces some problems like limited capabilities to aid conditional, competition among alternative donors, flexibility in Aid process.
Motivations of Donor’s explained into two ways, how donors motivation have changes and describe about the domestic policies of donor’s country. With the end of Cold War, the whole international system has been changed, effects of the aid on the beneficiaries was limited. Because donor no longer need to use aid to reject communism, they focused balance of power and containment policy. Due to the external security changes, motivations in Cold war replaced by the other geopolitical motivations. The donor country’s motivation to support foreign aid include ideological and economic perspective. Donors only give more aid to those countries in which they have their economic and political interest. In pre or post-cold war era, the aid never effect in the positive way on the democracies. In democracies, the taxation of elites decreases aid from democracies, can change with the change of democratic regime. Overall, we know that changes in the geopolitical environment will affect aid flows and their impact in the future, as they have in the past. Another area warranting further research is military aid. Data on such aid is much more fragmentary and difficult to interpret than data on development aid. Furthermore, there is no political consensus among donors as to appropriate policies for deploying military aid, as there has been among the OECD countries for development aid. And yet, with the global campaign against terrorists following 9/11, military aid has become more important as a foreign policy tool. In addition, the impact of foreign military aid on the development of recipient countries’ internal security and domestic peace warrant more attention. Overall, research on military aid is an important and understudied area, especially its connection to terrorism.
Furthermore, it is our hope that non-traditional donors like China will start to distribute accurate data on foreign aid flows. Not only will this permit greater collaboration on development activities with other donors, but it will also enhance the ability of scholars to understand the motivations and impact of flows of aid from a variety of different political systems. As a regular policy tool, the foreign was institutionalized. Earlier, the foreign aid depends upon the bilateral relations in which the donor country mentions all the rules and circumstances on the recipient state. But after the creation of World Bank, and International Monetary Fund, countries take or give aid through these multilateral institutions. By 2009, multilateral institutions aid around 36 billion, nations become the member of these institutions in taking the aid in form of loans. Multilateral agencies can make aid work better since they can impose conditions more readily on recipient countries. A number of studies have demonstrated that multilateral aid is allocated differently and more effectively than bilateral aid.

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