This is a comprehensive analysis of the economics of international aid that provides a systematic framework for understanding, planning, and executing aid programs. Though much has been written on different aspects of international aid, this book was the first to synthesize information on all facets of aid and to investigate the consequences, for both donor and recipient nations, of the transfer of public resources in aid programs. The authors first present the history of aid, discuss the principles that govern aid as practiced by the United States, the United Kingdom, Russia, China, the United Nations, and other donors, and then provide a broad theoretical structure in which to discuss particular questions taken up in subsequent chapters. The book systematically covers all aspects of the aid relationship, and in addition to broad coverage of aid programs, analyzes details of the aid relationship to discern the function of the different variables of aid. In one coherent volume, outlines sound theoretical bases for discussion of aid programs, provides valuable insights into contemporary practices, and offers far-reaching suggestions on the future of aid programs. On first publication in the mid-1960s, in the midst of the Cold War, this book had considerable influence and its interest outlasts its parochial times as one of the first to discuss the effects of aid on both donor and recipient countries.