This text explores the changes foreign aid has undergone between the late 1950s and the late 1990s. It examines these changes in the context of the wider economic and political developments. The book analyzes why some countries - both in the developing world and former communist states - seem to need assistance. It critically surveys the values-based and interests-based arguments in favour of aid and its many forms; encompasses the non-governmental and multicultural dimensions as well as the bilateral flows, at national and sub-national levels; and focuses particularly on the contemporary emphasis on making aid dependent on democratization and good government.