Transfer of capital, goods, or services from one country to another.
Foreign aid may be given in the form of capital transfers or technical assistance and training for either civilian or military purposes. Its use in the modern era began in the 18th century, when Prussia subsidized some of its allies. After World War II, foreign aid developed into a more sophisticated instrument of foreign policy. International organizations, such as the United Nations Relief and Rehabilitation Administration , were created to provide aid to war-ravaged countries and newly freed colonies. Foreign aid is often given with conditions attached, such as the requirement that all or part of it be used to buy goods from the donor country. See also International Monetary Fund ; Marshall Plan ; World Bank .