What Is Foreign Aid?

The term foreign aid refers to any type of assistance that one country voluntarily transfers to another, which can take the form of a gift, grant, or loan. Most people tend to think of foreign aid as capital, but it can also be food, supplies, and services such as humanitarian aid and military assistanc🎶e.

Broader definitions of aid include any assistance transferred across borders by religious organizations, 澳洲幸运5官方开奖结果体彩网:non-governmental organizations (NGOs), and foundations. U.S. foreign a🧔id usually refers to military and economicꦉ assistance provided by the federal government provides to other countries.

Understanding Foreign Aid

Foreign aid is any type of assistance that one country's government provides to another nation, usually from developed to developing nations. Governments may issue aid in the following forms:

• Money
• Food and supplies
• Medical assistance including doctors and supplies
• Humanitarian aid such as relief workers
• Training services including agricultural training
• 澳洲幸运5官方开奖结果体彩网:Health care
• Education
• Assistance with 澳洲幸运5官方开奖结果体彩网:infrastructure building
• Activities related to peacebuilding

Governments may make agreements with the countries to which they provide assistance. For instance, a developed nation may agree to provide grants to those in need after a 澳洲幸运5官方开奖结果体彩网:natural disaster or during times of conflict, whether they provide any type of capital or humanitarian aid. Alternatively, a government may agree to issue loans to an allied nation that experiences economic uncertainty with special 澳洲幸运5官方开奖结果体彩网:repayment provisions.

According to the Organisation for Economic C🅷o-operation and Development (OECD)—an intergovernmental organisation with 38 member countries aimed at promoting sustainable economic growth—member countries contributed a record $223.7 billion in international aid in 2023.

The United States is the most generous, according to the OECD, providing $66.04 billion in foreign aid in 2023. The rema♚ining countries that wer🥃e among the top five donors included:

• Germany: $36.68 billion 
• Japan: $19.6 billion
• United Kingdom: $19.11 billion
• France: $15.43 billion

The 澳洲幸运5官方开奖结果体彩网:United Nations (UN) calls for economically advanced countries to spend at least 0.7% of their 澳洲幸运5官方开奖结果体彩网:gross national income (GNI) on international aid. Norway, Luxembourg, Sweden, Germany, and Denmark are the only countries that met or exceeded this level. The total contribution of member countries, though, averaged 0.37%—much lower than the UN target.

The countries that received the most foreign aid from the U.S. for 2023 include Ukraine, Israel, Ethiopia, Jordan, and Egypt.

Special Considerations

Foreign aid estimates tend to vary, given the different agencies, funding methods, and aid categories associated with U.S. foreign assistance efforts. For instance, the Congressional Research Service (CRS)—a nonpartisan arm of Congress—the country spent $69.01 billion in foreign assistance during the 2023 fiscal year. That figure amounted to 1% to 1.5% of the total federal budget authority.

Aid can be provided by governments directly or through special federal agencies. For instance, the United States Agency for Intern🦂ational Development (USAID) was created in 1961 to provide civilian aid. It provides assistance with education, environment, climate change, global health, crises and conflicts, food and agriculture, water, and human rights.

History of Foreign Aid

Foreign aid—also commonly referred to as international aid and economic aid—isn't a new concept. The colonies were recipients of foreign military aid, particularly from France, during the 澳洲幸运5官方开奖结果体彩网:American Revolution. During World War I, the U.S. government loaned the Committee for Relief🐼 in Belgium $387 miꦫllion, much of which it later forgave.

U.S. foreign aid began in earnest during World War II. Before entering the war, the government began funneling funds and materials to the allied nations under the Lend-Lease program, which totaled $50.1 billion by August 1945. The Unඣited States also contributed $2.7 billion through the United Nations Relief and Rehabilitation Administration (UNRRA), beginning in late 1943.

For the four years following 1948, the U.S. gave $13 billion in aid to countries affected by the war such as the United Kingdom, France, and West Germany through the 澳洲幸运5官方开奖结果体彩网:Marshall Plan. The Mutual Security Act of 1951 authorized around $7.5 billion in foreign aid per year until 1961. The amount of aid authorized by the Mutual Security Act in 1951 was approximately 2.2% of the country's 澳洲幸运5官方开奖结果体彩网:gross domestic product (GDP).

The Bottom Line

Foreign aid refers to any resource that one country transfers to another. Aid can take the form of money, military assistance, or humanitarian resources, such as food, medicine, and shelter. Foreign aid can be distributed directly from one government to another, or it may be multilateral, channeled through organizations such as the United Nations.