ABSTRACT
This chapter discusses the various measures of performance in the context of the aid-dispensing process. It presents the economic considerations involved in foreign aid designed primarily to finance specific activities, as against general aid for economic development in the form of program loans or budgetary or balance-of-payments support. The chapter provides certain approaches and techniques associated with project analysis, and discusses particular categories of projects or activities. Foreign-aid administrators and policy makers must be concerned with all of the complex problems relating to social and economic progress in developing countries. Aid, by its very nature, involves strategies and priorities on the part of the donor. Priorities must often be determined more on the basis of investment strategies involving the relative importance to be given to particular sectors of the economy, with due regard for the long-run development goals.
