ABSTRACT

More generally, various trends are redesigning the landscape of foreign aid. Foreign direct investment (FDI), remittances, and loans far outpace the level of traditional development assistance in most countries. (Some countries, notably China, link their public assistance programs with commercial deals designed to secure access to natural resources.) Remittances and FDI are expected to continue to increase in most low-income countries, while a small portion will remain heavily reliant on international developmental assistance.