ABSTRACT
The South, a categorization used commonly to describe a rather heterogeneous group of countries, ranging from the least to the more developed middle income states, offers a useful insight into the interplay between aid and development. To the extent that the development process depends upon many economic, social, political and historical factors, the South with all its diversity provides a rich tapestry of experiences. While the structural conditions of poverty in the South makes it imperative for responses from the larger international community, there is more to development aid than the simple rendering of help. In its correct sense, the term ‘aid’ refers only to those parts of capital inflow that are not provided for by the market. Decisions relating to foreign direct investments or trade therefore do not qualify as aid. However, aid even for development is rarely unconditional. By its very nature, aid including that provided by non-state actors, cannot claim to be politically neutral (Mosse 2005, Ferguson 1994, Scott 1998, Escobar 1995). No matter who provides or for what purpose, the subjective nature of the relationship created by way of aid flows makes development aid in general a politically contentious issue.
