This House favours multilateral aid.

The giving of international aid has been taking place for decades, but the higher levels of international aid we know today are largely a phenomenon of the post-World War II era. Contrasting models of foreign aid giving are provided by programs like the Marshall Plan, involving bilateral aid arrangements with each of several European countries, and by the multilateral arrangements created by the Bretton Woods process (the International Monetary Fund and the World Bank). Historically, bilateral aid has dominated the foreign aid landscape. The major economic powerhouses—mostly former colonial powers and the United States—provide the bulk of foreign aid. Contributions by multilateral organizations such as the IMF and the World Bank have been controversial for their focus on economic development and the sometimes severe austerity measures they impose upon recipients. Because aid in both contexts is often tied to loans, critics have argued that aid has merely led to the dependence of developing countries on the developed world. Recently, countries such as the United States and the United Kingdom have increased their contributions to NGOs or non-governmental organizations that provide help with a variety of different needs in recipient countries. Despite these changes, citizens and politicians in both the United States and Europe seem to be experiencing an increased level of “aid fatigue,” questioning the value of the continued expense.