Tied Aid

In this type of aid the giving (or donor) country also benefits economically from the aid. This happens as the receiving country has to buy goods and services from the donor country to get the aid in the first place. In building a dam, for example, the Britain may insist that their companies, experts and equipment are used. Wheather the aid is given may depend on the receiving country agreeing to buy e.g. military jets from the donor.

Some people believe that this type of aid can be harmful if it supports governments that oppress their people.