What is Multilateral Aid?

Multilateral means “many sides”. Here organisations that involve many countries, give help. This aid is run by groups such as the World Health Organisation (WHO) and United Nations Educational, Scientific and Cultural Organisation (UNESCO) – both of which are part of the United Nations (UN). Economic aid for development by the developed countries is based on political affinities with the recipient country. Such an aid may be bilateral or multilateral. Multilateral aid is through international financial institutions for use in the import of goods and services from any country. Multilateral aid is usable anywhere and hence its rate of utilization will be high.