There are three types of aid that a developing country can receive three different types of aid. The first type is the humanitarian aid which is sent normally to a specific problem and can be donated from a country to a country directly or through a major organization such as the UN. The second type is the bilateral aid given from one country to another and is also a type of loan that can be paid in the long term or can granted below the market terms. The third type of aid is the multilateral aid where multiple countries donate to a central organization and the organization determines who gets the money and for what. An aid can also be official when it is managed by either a government or government agencies. The unofficial aid is administered by a non-government organization such as a charity. Another type of aid is also called the tied-aid that occurs when the aid is tied to a particular contact.

A successful aid should help the country to improve the living standards of poorest people, overcome the low savings ratios, help reduce foreign exchange outflows and reduce the dependency on private investment. The development of poorer countries includes improving the lives of the poor people. This in turn will increase the number of people who can contribute to the growth of the economy. Part of the aid should also be devoted to improving the quality of education so that the country’s economy can be improved in the long run. This will also help improve the unemployment rate of the country. However, aid cannot be the only means of incentive in promoting the development of the country’s economy. Therefore, aid will only help an economy to develop to a certain extent.