ABSTRACT
This chapter focuses on the terminology of "foreign aid" and the existing literature on the subject. It discusses standard definitions of foreign aid and how China's foreign aid in Africa has been previously researched. Depending on the ways foreign aid is utilised, foreign aid is primarily broken in two categories: Project Aid and Programme Aid. Project Aid concerns aid in which the donor country applies its aid budget directly in the assistance of particular development projects in recipient countries. Programme Aid refers to aid that supports particular development plans in recipient countries. Instead of building or organising specific foreign aid projects, it is utilised for import allocations, budget subsidies, allowances for balance of payments, debt repayment and regional development planning. With reference to the development areas that the foreign aid is intended to assist, aid is often put into several different categories. Of these, the most common categories are industrial aid and agricultural aid.
