Developing countries search for ways to grow economically in the most efficient way. There are various ways that a country tries in developing and growing the economy. Aid is one the largest single source that developing countries are assisted with. Aids are given in three main ways such as humanitarian, bilateral, and multilateral. First, humanitarian way is done by an individual, country or via major organizations. It is usually sent to help countries suffering from a specific problem such as drought. Second, bilateral way is an aid given by one country to another. It is a loan that are granted as soft or below market terms. Multilateral way is when separate countries pay money into one central organization, which could be given through a large international agency.
A successful aid is to try to overcome the low savings ratios, help reduce foreign exchange outflows, and reduce the dependency on private investment.
