International aid
Aid is money given by a high income country (HIC)A country with a gross national income per capita above US $12,735 (according to the World Bank) such as the Netherlands and the UK. (HIC) to a low income country (LIC)Based on the World Bank's income classifications, a LIC has a gross national income (GNI per capita) of $1,045 or lower. (LIC) to help with development. It can come in a variety of forms:
- short-term aidHelp which is given to a country in times of need, eg after a natural disaster. - needed after sudden disasters.
- long-term aidHelp which is given to a country to allow it to develop, eg building a hospital to improve healthcare. - money given for a specific project over a long period of time.
- tied aidAid that is given with conditions attached. - aid that is given with conditions attached.
- Charitable aid - raised by donations from charities.
- bilateral aidThe process of one country giving money to another. - when one country gives money to another. Only two countries are involved.
- multilateral aidWhen more than one country gives aid to another country. - when more than one country gives money, eg through the World Bank.
India received ODA (Official Development Assistance) which it spends on things like infrastructure projects and education. Japan, Germany, France and the UK are amongst the biggest contributors of ODA to India.