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Extract: Foreign aid, also referred to as development assistance, is one of the most common instruments used by governments to achieve foreign policy goals, especially since the end of World War Two. Aid can attain many forms – mostly it comprises the transfer of money, goods or services from one country to another. Military assistance and food aid are among the earliest forms of foreign aid. In the last decades aid projects with the ultimate goal of improving the infrastructure in the recipient country have become increasingly common.

The world of development assistance is being shaken by the economic power shift occurring across the globe. Emerging donors, including China, UAE, Saudi Arabia, Korea, India and Brazil, are inconspicuously beginning to change the rules of the game. These new donors have been able to increase their volume of aid to least developed countries on terms of their choosing, as none of them belongs to the Organization of Economic Cooperation and Development (OECD).[1] The People’s Republic of China (PRC, China) is the most prominent in this group of emerging donors.