Foreign aid in the context of "Tax revenue"

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⭐ Core Definition: Foreign aid

In international relations, aid (also known as international aid, overseas aid, foreign aid, economic aid or foreign assistance) is – from the perspective of governments – a voluntary transfer of resources from one country to another. The type of aid given may be classified according to various factors, including its intended purpose, the terms or conditions (if any) under which it is given, its source, and its level of urgency. For example, aid may be classified based on urgency into emergency aid and development aid.

Emergency aid is rapid assistance given to a people in immediate distress by individuals, organizations, or governments to relieve suffering, during and after man-made emergencies (like wars) and natural disasters. Development aid is aid given to support development in general which can be economic development or social development in developing countries. It is distinguished from humanitarian aid as being aimed at alleviating poverty in the long term, rather than alleviating suffering in the short term.

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👉 Foreign aid in the context of Tax revenue

Tax revenue is the income that is collected by governments through taxation. Taxation is the primary source of government revenue. Revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources and/or foreign aid. An inefficient collection of taxes is greater in countries characterized by poverty, a large agricultural sector and large amounts of foreign aid.

Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be a third party licensed to collect tax which they themselves will use. For example, in the UK, the Driver and Vehicle Licensing Agency (DVLA) collects vehicle excise duty, which is then passed on to HM Treasury.

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Foreign aid in the context of Reforms

Reform refers to the improvement or amendment of what is wrong, corrupt, unsatisfactory, etc. The modern usage of the word emerged in the late 18th century and is believed to have originated from Christopher Wyvill's Association movement, which identified "Parliamentary Reform" as its primary aim. Reform is generally regarded as antithetical to revolution.

Developing countries may implement a range of reforms to improve living standards, often with support from international financial institutions and aid agencies. This can involve reforms to macroeconomic policy, the civil service, and public financial management.

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Foreign aid in the context of Carrots and sticks

The phrase "carrot and stick" is a metaphor for when two different methods of incentivisation are simultaneously employed; the "carrot", referring to the promising and giving of desired rewards in exchange for cooperation; and the "stick", referring to the threat of undesired consequences in response to noncompliance or to compel compliance. In politics, the terms are respectively analogous to the concepts of soft and hard power. A political example of a carrot may be the promise of foreign aid or military support, while the stick may be the threat of military action or imposition of economic sanctions. In religion, the concept of Heaven is considered the "carrot" while Hell is the corresponding "stick."

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Foreign aid in the context of Department for International Development

The Department for International Development (DFID) was a ministerial department of the government of the United Kingdom, from 1997 to 2020. It was responsible for administering foreign aid internationally.

The DFID was founded by the UK government in 1997. The department was established by the Labour government under Prime Minister Tony Blair. The structure of the DFID was authored by various Developmental Aid Experts including Chris Collins, Barnaby Edwards Machteld, Nicolas Brown and Timothy Montague Hamilton Douglas.

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Foreign aid in the context of Aid agency

An aid agency, also known as development charity, is an organization dedicated to distributing aid. Many professional aid organisations exist, both within government, between governments as multilateral donors and as private voluntary organizations or non-governmental organisations. The International Committee of the Red Cross is the world's second-oldest humanitarian organisation and is unique in being mandated by international treaty to uphold the Geneva Conventions. The Sovereign Order of Malta, established in 1099 as the Order of St. John of Jerusalem, has an unbroken tradition of over 900 years of hospitaller activities, continuing to this day. Even in its modern guise under international law, it was recognized at the Congress of Verona of 1822, and since 1834 headquartered in Palazzo Malta in Rome, decades before the Red Cross.

Aid can be subdivided into two categories: humanitarian aid (emergency relief efforts, e.g. in response to natural disasters), and development aid (or foreign aid), aimed at helping countries to achieve long-term sustainable economic growth, with the aim of achieving poverty reduction. Some aid agencies carry out both kinds of aid, whilst others specialise on one aspect.

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Foreign aid in the context of Mutual Security Act

The Mutual Security Act of 1951 launched a major American foreign aid program, 1951–61, of grants to numerous countries. It largely replaced the Marshall Plan. The main goal was to help underdeveloped US-allied countries develop and to contain the spread of communism. It was signed on October 10, 1951, by President Harry S. Truman. Annual authorizations were about $7.5 billion ($91 billion today), out of a GDP of $340 billion in 1951 ($4.1 trillion today), for military, economic, and technical foreign aid to American allies. The aid was aimed primarily at shoring up Western Europe as the Cold War developed. In 1961 it was replaced by a new foreign aid program, the Foreign Assistance Act of 1961, which created the Agency for International Development (AID), and focused more on Latin America.

The Mutual Security Act also abolished the Economic Cooperation Administration, which had managed the Marshall Plan and transferred its functions to the newly established Mutual Security Agency (MSA). The Agency was established and continued by acts of October 10, 1951 (65 Stat. 373) and June 20, 1952 (66 Stat. 141) to provide military, economic, and technical assistance to friendly nations in the interest of international peace and security, but was abolished by Reorganization Plan No. 7 of 1953, effective August 1, 1953, and its functions were transferred to the Foreign Operations Administration. The act however, was extended by appropriators each fiscal year until the early 1960s.

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Foreign aid in the context of Norwegian Foreign Minister

The Minister of Foreign Affairs (Bokmål: Utenriksministeren, Nynorsk: Utanriksministeren) is a councilor of state and chief of the Norway's Ministry of Foreign Affairs. Since 16 October 2023, the position has been held by Espen Barth Eide of the Labour Party.

The Ministry of Foreign Affairs, based at Victoria Terrasse, Oslo, is responsible for Norway's relation with foreign countries, including diplomacy and diplomatic missions, trade, foreign aid and cooperation with international organisations. Except during the four in which a Deputy of the Prime Minister of Norway was appointed, the Minister of Foreign Affairs ranks second in the cabinet after the Prime Minister and is his deputy.

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