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Foreign Aid in Developing Countries

Adane Nigatu H

The flow of foreign aid to developing countries has a long-standing history taking place largely through private ventures, missionary activities, and migration. However, many researchers agree that foreign aid as an institution began in the late 1940s, particularly with the 1947 Marshall Plan, which aimed at the reconstruction of European economies devastated by World War II. And almost immediately, attention was paid to the impact of large amounts of aid on the behaviour and attitudes of recipient governments.