What is Bilateral Aid?

Bilateral means “two sides”. This type of aid is from one country to another. An example would be Britain giving money and sending experts to help build a dam in Turkey. Quite often bilateral aid is also tied Aid. This is the most common type of 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. Whether the aid is given may depend on the receiving country agreeing to buy e.g. military jets from the donor. Bilateral aid is from one government to the other. Generally bilateral aid constitutes the bulk of the total aid granted to any country. It may be tied or untied.