Differentiate foreign investment from the types of aid provided by the UNDP and World Bank, citing specific examples of aid from both.

In 2020, the United States provided foreign aid of various kinds to over a hundred countries in the world.

For American taxpayers, the cost of foreign aid amounted to $43.5 billion in 2020 and $43 billion in 2019.1 Foreign aid is not the only kind of foreign assistance, but it might be the most controversial. Some of the different types of foreign aid include bilateral aid, military aid, multilateral aid and humanitarian assistance.2

KEY TAKEAWAYS

Governments of developed countries often engage in investment and assistance to less developed countries, to the tune of several billions of dollars each year.

This assistance is intended to promote global economic and political stability, to encourage growth and development, and to protect allies around the world.

This aid typically takes the form of foreign direct investment (FDI), humanitarian aid, and foreign trade incentives.

Types of Foreign Development Assistance

Explanation:

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